Broker’s Report

New outlet openings to feed Koufu's hunger for earnings

SINGAPORE (Nov 5): DBS Group Research is staying positive on Koufu Group, on the back of a flurry of new store openings which has driven earnings growth.

The brokerage is keeping its “buy” call on Koufu with a target price of 88 cents.

“We continue to like Koufu for its stable earnings, decent yield of 3.4%, decent cashflow generation, strong balance sheet, and steady store expansion plans,” says lead analyst Alfie Yeo in a Tuesday report.

Cheer from Budweiser Asia's listing could extend to ThaiBev via Sabeco: CGS-CIMB

SINGAPORE (Oct 3): As investors toast to the successful listing of Budweiser Brewing Co APAC – the Asian operations of the world’s largest brewer, Anheuser-Busch InBev – the cheer could extend to locally-listed Thai Beverage too.

Given that Budweiser Asia derives most of its sales revenue from markets such as Vietnam, ThaiBev-controlled Saigon Alcohol Beer and Beverages Corp (Sabeco) could be in good company.

Singapore's main real estate brokerages offer great value and defense, say analysts

SINGAPORE (June 7): Phillip Capital and CGS-CIMB Research are initiating positive coverage on both APAC Realty and PropNex, the two main market players within Singapore’s real estate brokerage sector.

In a Monday report, Phillip analyst Tara Wong says she likes both stocks for their market dominance within the real estate brokerage market in Singapore, which in turns allows to them to capture a substantial amount of transactions in both buyer and seller markets.

CapitaLand Mall Trust to deliver higher returns in near-term, but positives already priced in: OCBC

SINGAPORE (June 6): OCBC Investment Research is maintaining “hold” on CapitaLand Mall Trust (CMT) while raising its fair value estimate by a cent to $2.33 on the faster-than-expected ramp up of Funan.  

This comes after CMT’s manager announced the impending opening of the integrated development on June 28, two months ahead of the original scheduled date.  

Sembcorp Industries could benefit from US-China trade war, says OCBC

SINGAPORE (June 4): OCBC Investment Research is maintaining “buy” on Sembcorp Industries (SCI) with a lower fair value estimate of $3.03 compared to $3.13 previously.

The fair value cut comes on the back of a lower fair values estimate for SCI’s 61%-owned marine business Sembcorp Marine (SMM), as the market continues to monitor SMM’s capital expenditure and working capital needs.

In a Tuesday report, analyst Low Pei Han notes that net gearing as at 1Q19 for SMM and SCI was at 1.47 times and 1.1 times, respectively,

Analysts expect a more exciting performance from mm2 Asia in FY20

SINGAPORE (June 4): DBS Vickers Securities is upgrading its call on mm2 Asia from “hold” to “buy” while raising its target price by a cent to 34 cents, which is pegged to 16 times FY20F earnings for the core business, and in line with listed peers in Asia.

Meanwhile, CGS-CIMB Research maintains its “add” call on the stock with an unchanged target price of 37 cents.

OCBC drops coverage on KSH Holdings post FY19 earnings miss

SINGAPORE (June 3): OCBC Investment Research is ceasing coverage on KSH Holdings, citing “reallocation to resources” after the construction group’s latest set of financial results missed expectations on the back of poorer-than-expected margins.

OCBC says Soilbuild REIT has undemanding valuations, but still lacks catalysts

SINGAPORE (May 31): OCBC Investment Research is maintaining “hold” on Soilbuild Business Space REIT (SB REIT) with an unchanged fair value of 62 cents as the REIT continues to await rent payment due from its master lease tenant, NK Ingredients.

To recap, the distressed lanolin manufacturer is in the midst of restructuring.

IHH Healthcare to see an exciting 2019 with increasingly palatable valuations: UOB

SINGAPORE (May 31): UOB Kay Hian is maintaining “buy” on IHH Healthcare with a target price of RM6.30 ($2.07), which implies 32.8 times 2020F P/E – well below its historical five-year 12 month forward P/E of 57 times based on the stock’s performance on the KLSE.

SembMarine is now looking cheap but beware of the risks: OCBC

SINGAPORE (May 30): OCBC Investment Research is maintaining its “hold” call on Sembcorp Marine (SMM) while lowering its fair value estimate to $1.60 from $1.77 previously upon slashing its price-to-book valuation from 1.6 times to 1.45 times.

OCBC’s move comes post the group’s 13.2% share price correction (versus the STI’s 6.8%) since the release of its 1Q19 earnings announcement.

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