broker's report

Singapore confirms first case of Wuhan virus. Here's what investors need to know.

SINGAPORE (Jan 24): Singapore’s stock market is expected to be rattled on Friday, after the Asian financial hub on Thursday evening announced its first confirmed case of the deadly Wuhan virus that has claimed the lives of at least 17 people in China.

According to China’s National Health Commission, at least 571 people in China have been confirmed to be infected with the new coronavirus, which first appeared last month in Wuhan, the largest city in central China with a population of about 11 million.

Things are looking up for O&M sector: UOB Kay Hian

SINGAPORE (Jan 21): The offshore and marine (O&M) sector is kept at “market weight” by UOB Kay Hian, as analysis by the research house on the global oil and gas (O&G) sector and the global rig market indicated that while there have been some positive developments, a new rig-building upcycle is some years away due to the excess supply of such assets.

In a Monday report, analyst Adrian Loh says, “Given recent order wins, we see the offshore wind sector presenting opportunities while the electric vehicle (EV) sector does not yet present a threat to oil demand.”

Japfa milking profits from higher average selling price in key segments

SINGAPORE (Jan 20): UOB Kay Hian is upgrading its call on agri-food company Japfa to “buy” from “hold” with a higher target price of 80 cents from 50 cents previously.

This is due to a significant rise in Japfa’s average selling price for its three key segments – swine, raw milk and broiler – since 4Q19.

Swine price in Vietnam has exceeded its five-year high due to the African Swine Fever (ASF) outbreak.

Boustead Projects started at 'buy' on strength of 'overlooked assets', possible REIT spin-off: UOB Kay Hian

SINGAPORE (Jan 17): Having made its name as a real estate solutions provider, Boustead Projects’ focus is naturally on its core engineering expertise.

The group’s Design-and-Build segment, which provides turnkey solutions to clients for custom-built smart eco-sustainable business park and industrial developments, accounted for nearly 90% of total group revenue in 1HFY2020 ended Sept 30, 2019.

The segment also contributed to just over 69% of Boustead Projects’ total profit before tax during the period.

Boustead Singapore started at 'buy' on 'reliable prospects': UOB Kay Hian

SINGAPORE (Jan 16): UOB Kay Hian is initiating coverage on infrastructure-related engineering and technology group Boustead Singapore with a “buy” recommendation and a target price of 92 cents.

The target price represents a potential upside of almost 18% to its last closing price of 78 cents on Jan 15.

“The company offers reliable prospects from its geospatial segment, which rides on sustainable industry tailwinds through the proliferation of location-based data,” says lead analyst Lucas Teng in a Jan 16 report.

Venture's FY20 performance could be dragged by major customer's poor revenue guidance

SINGAPORE (Jan 15): Venture Corp’s performance this year could be dragged by a disappointing FY20 revenue guidance by US biotechnology equipment manufacturer Illumina – its major customer – according to CGS-CIMB Research.

CGS-CIMB notes that Illumina’s CEO recently guided that the latter’s revenue could grow 9% to 11% y-o-y, which is below analysts’ expectation of 12%.

The slower growth is due to lower shipments of genome sequencing equipment NovaSeq y-o-y, Illumina guided.

Still, CGS-CIMB notes that Illumina intends to launch new products this year.

5G not likely to be a game changer for Singapore telcos, says RHB

SINGAPORE (Jan 14): While fifth generation wireless technology for digital cellular networks, or 5G, has been the buzzword in the telecommunications industry, RHB Group Research believes it is not likely to be a game changer for Singapore telcos.

“While Singapore will be one of the first in the region to rollout 5G on the mid-band spectrum (3.5GHz), we see little impact from 5G in the medium term,” the brokerage says in a sector report on Jan 14.

This is because Singapore already sees extensive fibre penetration and adoption nationwide, the brokerage says.

Latest acquisition expected to bring SPH REIT to new heights this year

SINGAPORE (Jan 13): Analysts are keeping their positive stance on SPH REIT following the REIT’s 1Q20 results announcement on Jan 10.

The REIT recorded a DPU of 1.38 cents, 3.0% higher than 1.34 cents in 1Q19. This came on the back of an 11.8% y-o-y increase in gross revenue to $60.1 million and a 12.4% y-o-y increase in net property income to $47.0 million.

Sold-out concerts expected to keep UnUsUaL flying high: UOB Kay Hian

SINGAPORE (Jan 9): UOB Kay Hian is reiterating its “buy” recommendation on UnUsUaL with a target price of 44 cents – implying a potential upside of 60% – as the concert production company looks poised to turn in a set of solid results for 3QFY2020 ended Dec 31, 2019.

“Sold-out shows from popular artistes such as JJ Lin, Eric Chou and Air Supply are expected to boost UnUsUaL’s profits for 3QFY2020,” says lead analyst Llelleythan Tan in a Jan 9 report.

UnUsUaL is expected to release its 3QFY2020 results next month.

Centurion Corp started at 'add' by CGS-CIMB on strong growth potential

SINGAPORE (Jan 8): CGS-CIMB Research is initiating coverage on Centurion Corporation, the provider of purpose-built worker accommodation (PBWA) and purpose-built student accommodation (PBSA), with an “add” recommendation and a target price of 61 cents.

As of 3Q19, the group has over 32 properties in six countries, which translates to around 64,956 beds. In FY18, PBWA contributed 67.1% of revenue and PBSA formed 31.4%.

CGS-CIMB likes this stock because it has consistently grown its bed capacity via developments and acquisitions.

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