SINGAPORE (Nov 18): CIMB Securities is highlighting five small-cap stocks under its coverage after noting a generally “lukewarm” financial results performance for 3Q16.
“The 3Q16 results season saw net profit of three companies coming in above expectations, 13 companies performing in line with expectations and three companies below expectations. The 3Q16 earnings outperformance came mainly from slightly better sales performance and benefits of restructuring,” recap CIMB’s team of analysts in a Thursday report.
The research house has named two top growth picks, Cityneon and Memtech, at target prices of $1.19 and 74 cents respectively. With regards to the former, the team forecasts higher EPS growth, especially in FY17, due to the launch of its Transformers’ exhibition in Las Vegas. Winning a third set of licensing rights would be a re-rating catalyst for Cityneon.