buy call

China Aviation Oil kept at 'buy' by RHB on diversification strategy, long-term growth prospects

SINGAPORE (Jan 21): RHB Group Research is reiterating its “buy” call on China Aviation Oil (CAO) with a target price of $1.55, representing a 21% upside for the stock. 

In a Tuesday report, RHB analyst Shekhar Jaiswal continues to remain sanguine on the group’s long-term growth prospects, which could well be boosted by the continuing rise in China’s aviation traffic, as well as the group’s diversification into jet fuel supply to non-Chinese markets.

DBS initiates coverage on Fu Yu Corp with 35 cents price target

SINGAPORE (Jan 15): While the bottoming out of plastics components manufacturer Fu Yu Corp’s earnings might have been a cause for concern to some investors, the stock could well be poised for a turnaround as earnings are set to pick up. 

DBS Group Research is initiating coverage on Fu Yu with a target price of 35 cents, representing a 40% upside for the stock. 

In a Wednesday report, analyst Ling Lee Keng has highlighted a few reasons why a re-rating is on the horizon for the group in the coming year. 

Analysts revise FY20 estimates, price targets as AEM beats revenue forecasts

SINGAPORE (Jan 15): There is no slowing down for precision engineering services firm AEM Holdings, as a solid FY19 seems to have paved the way for an even better year to come. 

On Jan 8, the group announced that it had bagged some $245 million worth of sales orders for delivery for FY20. 

“The group expects FY20 revenue to be between $330 million to $350 million,” the group said in a regulatory filing. The projected revenue is indeed a significant increase from previous figures of $262 million in FY18 and $222 million in FY17. 

ST Engineering remains RHB's top sector and country pick on record high orderbook, profit growth outlook

SINGAPORE (Jan 13): Following a solid 2019, ST Engineering appears poised to continue its good run this year.

According to Shekhar Jaiswal, an analyst at RHB Group Research, ST Engineering could deliver double-digit profit growth in 2020-2021, on the back of its record high orderbook and earnings-accretive acquisitions.

ST Engineering is the brokerage’s top pick in Singapore as well as in the capital goods sector.

Reasons to cash in on plantation stocks amid an industry turnaround: RHB

SINGAPORE (Dec 23): For those looking to cash in on plantation stocks, it’s now or never.

Crude palm oil prices are on the upswing – it climbed to a high of RM 2,665 per tonne by end November due to lower palm oil inventory.

While the spike is good news for industry players, RHB Research also advises caution as the price rise is “a bit too sharp”.

“We expect to see a slight pullback before prices start picking up again in 1Q20,” says the RHB’s Singapore research team in a report released on Thursday.

Yangzijiang poised for strong share price rebound on chairman's return: DBS

SINGAPORE (Dec 23): DBS Group Research is maintaining its “buy” call on Yangzijiang Shipbuilding with an unchanged target price of $1.68, representing a 57% upside for the stock.

In a regulatory filing on Dec 22, Yangzijiang reported that its executive chairman Ren Yuanlin was set to return to office on Dec 23. He was on leave for four months to assist in a government probe.

Keppel DC REIT slated for 'record DPU' in FY20 on accretive acquisitions, says DBS

SINGAPORE (Dec 18): DBS Group Research is maintaining its “buy” call on Keppel DC REIT (KDCREIT) with a target price of $2.23, translating into a potential 13% upside for the stock. 

DBS analyst Derek Tan cites the REIT’s recent string of accretive acquisitions, namely KDC SGP 4 and DC 1 in Singapore, and Kelsterbach DC, a data centre in Germany. 

Although the REIT’s second data centre in Germany had set it back by some $125.3 million, Tan opines that the REIT is in a comfortable position to fund the acquisition. 

Interra Resources at 'key inflexion point', poised for turnaround: SAC Capital

SINGAPORE (Dec 17): SAC Capital is maintaining its “buy” call on oil explorer and producer Interra Resources with a target price of 8.9 cents, representing an upside potential of some 71% for the stock. 

In a Thursday report, analyst Terence Chua opines that Interra is at a “key inflexion point”, noting that the group has exceeded the brokerage’s FY18 forecasts. 

Consumer spending slated to stay resilient despite tepid economic growth: RHB

SINGAPORE (Dec 11): RHB Research is maintaining its “neutral” call on the Singapore consumer sector, as decelerating economic growth and  macro-economic uncertainties threaten to tame consumer confidence and limit upside potential in the upcoming year. 

Citing the Singapore government’s forecast for economic growth of 0.5%-2.5% y-o-y in 2020, RHB analyst Juliana Cai acknowledges that this should continue to dampen consumer sentiment. However, Cai attests that all is not lost.

5 promising 'alpha picks' that each offer potential upside of more than 20%: UOB Kay Hian

SINGAPORE (Dec 5): UOB Kay Hian has called investors’ attention to five promising stocks that offer further potential upsides of more than 20% to their target prices. 

These “alpha picks” are set to fire on all cylinders as they remain intact amid a slowing economy. 

On the large cap front, UOB highlights CDL Hospitality Trusts (CDLHT), DBS and Yangzijiang Shipbuilding as its top picks, with upsides of 27.3%, 20.4% and 36.4% respectively.

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