broker's call

Analysts remain upbeat as Wilmar crushes 3Q results

SINGAPORE (Nov 14): Analysts are upbeat and bullish on Wilmar International after the agribusiness group posted a 10% y-o-y increase in 3Q19 earnings to US$447.1 million ($608 million).

3Q19 revenue came in 2.2% lower at US$11.2 billion from a year ago due to lower commodity prices.

Wilmar says the stronger bottomline was driven by better results in tropical oils and consumer products as well as the recognition of a gain from the disposal of the group’s discontinued operations in Brazil.

Maybank KE downgrades Venture to 'hold'; recommends lower entry point

SINGAPORE (Nov 12): Maybank Kim Eng Research is downgrading its call on Venture Corporation to “hold” from “buy” previously to reflect to more challenging times. The research house has also cut its target price on Venture to $16.91 from $18.85 previously.

Investors are also recommended to take profit and await a materially lower entry point, assuming fundamentals do not deteriorate further.

Singapore Air flying low on mixed performance, but analysts still positive

SINGAPORE (Nov 11): Although Singapore Airlines (SIA) reported mixed performances across the group in 2Q20, analysts are still remaining positive on the stock.

In its latest 2Q20 results, SIA’s earnings came in at $94.5 million, 70% higher y-o-y, mainly due to higher contributions from associates and joint ventures of $78 million only to be offset by higher finance charges of $28 million.

Revenue increased by 5.3% y-o-y to $768.5 million, mainly driven by growth in passenger-flown revenue, although the topline was dragged down by cargo-flown revenue.

SAC Capital starts Hyphens Pharma on 'buy' as healthcare spending expected to rise

SINGAPORE (Nov 8): SAC Capital has initiated coverage on Hyphens Pharma International, a specialty pharmaceutical and consumer healthcare group, with a “buy” rating and target price of 28.5 cents.

The target price represents an upside of over 46% from Hyphens’ current share price.

This takes into consideration the company’s “footprint” in high-growth countries in Asean, sizeable target markets and growth potential for its proprietary brands, says the research house.

Frencken to benefit from semiconductor turnaround, analysts say

SINGAPORE (Nov 7): Analysts are positive on Frencken Group, after the equipment service provider saw its earnings more than double to $11.4 million for the 3Q19 ended September, from $5.3 million in 3Q18.

The earnings surge was on the back of the absence of one-off impairment losses incurred last year.

However, the group also put in a noteworthy performance during the quarter, as 3Q19 revenue increased 3.8% y-o-y to $170.2 million, and gross profit rose 7.4% to $27.0 million.

Mixed bag of treats from analysts on Sheng Siong

SINGAPORE (Nov 1): Analysts have rather contrasting views on supermarket operator Sheng Siong following the announcement of its 3Q19 results.

On Oct 30, Sheng Siong reported $20.5 million in earnings for 3Q19, some 15.9% higher than $17.7 million in 3Q18. This translates to higher earnings per share (EPS) of 1.37 cents for 3Q19, compared to EPS of 1.19 cents in 3Q18.

Delfi in for a sweet treat following product rationalisation, says DBS

SINGAPORE (Oct 31): DBS Group Research is reinstating its coverage on Delfi Limited with a target price of $1.49, which implies an upside potential of 49%.

Despite Delfi’s share price being lacklustre due to its downbeat earnings since 2015 on its product rationalisation strategy, analyst Alfie Yeo says, “We believe there is share price upside for Delfi given the valuation discount relative to our projected earnings growth, which we expect to step up to 9%/ 13% for FY19F/20F, from -23%/+6% in FY17/18.”

CapitaLand Retail China Trust poised for higher growth on potential new acquisitions, says DBS

SINGAPORE (Oct 29):  DBS Group Research is reiterating its “buy” recommendation on CapitaLand Retail China Trust (CRCT) on the back of potential value-enhancing tweaks to its portfolio.

“With a visible pipeline from the sponsor, we believe that it is an opportune time for CRCT to look at acquisitions,” says lead analyst Derek Tan in a Tuesday report.

“Aided by an active asset reconstitution strategy, CRCT continues to realise value for investors and proceeds can be deployed to value-accretive deals, which we believe could lead to higher earnings momentum,” he adds.

Analysts neutral on CapitaLand Mall Trust on weak retail outlook, but AEIs may help spur growth

SINGAPORE (Oct 23): Analysts are keeping a rather neutral stance on CapitaLand Mall Trust (CMT) following its results announcement on Oct 21.

The trust posted a 4.8% increase in its 3Q19 DPU to 3.06 cents from 2.92 cents in 3Q18, with distributable income increasing 9.1% y-o-y to $113.0 million.

Gross revenue also grew 17.9% y-o-y to $201.1 million, mainly due to the completion of the acquisition of the remaining 70.0% interest in Westgate on Nov 1, 2018, and the opening of Funan after a three-year redevelopment on June 28, 2019.

Ixom boosts Keppel Infra Trust's 3Q; Basslink drama not likely to have any financial effect, says DBS

SINGAPORE (Oct 18): DBS Group Research is reiterating its “buy” recommendation on Keppel Infrastructure Trust (KIT) with a target price of 58 cents.

This came on the back of the trust announcing that its 3Q19 DPU has remained flat y-o-y at 93 cents.

Distributable cash flow for the quarter came in at $55.7 million, a 61% y-o-y increase over the corresponding period.

Be informed of the stories that matter