hold call

UOB Kay Hian remains 'cautiously optimistic' on Singtel amid headwinds

SINGAPORE (Dec 9): UOB Kay Hian is maintaining its “hold” call on Singtel, with a target price of $3.32, indicating that stock trades at above its 5-year EV/EBITDA mean of 13.6x. 

On the whole, the brokerage appears to have a “cautiously optimistic” stance on Singtel, even as the group fights to defend its consumer and enterprise markets. 

In a Monday report, lead analyst Chong Lee Len notes that the telco is guiding for stable top-line EBITDA for the upcoming year amid competition in the consumer segment and a weak enterprise business outlook. 

Potential spin-off and listing of ThaiBev's beer business could bring new highs

SINGAPORE (Dec 3): Something is brewing at Thai Beverage.

In a regulatory filing on Nov 29, the spirits, beer and non-alcoholic beverages producer confirmed it is “evaluating strategic proposals and opportunities”, including a potential spin-off and listing of its US$10 billion ($13.7 billion) beer business.

The initial public offering (IPO) is said to potentially include ThaiBev’s brewery assets in Thailand and Vietnam.

Controlled by Thailand’s richest man Charoen Sirivadhanabhakdi, the group is best known for producing the Kingdom’s famed Chang beer.

Merger ticks all the right boxes for OUE Commercial REIT, but analysts remain cautious

SINGAPORE (Nov 19): OUE Commercial Trust (OUECT) seems poised to thrive on its recent merger with OUE Hospitality Trust (OUEHT), which appears to have ticked all the boxes for the REIT. 

OUECT’s latest set of financial results for 3Q19 ended September saw it register increases across several key financial metrics. 

Analysts see better days ahead for First Resources amid organic growth prospects, recovery in 4Q

SINGAPORE (Nov 14): Analyst remain sanguine on First Resources, despite the palm oil producer posting a set of results for 3Q19 that looked fairly dismal – on the surface at least.

While First Resources registered declines across several key financial metrics during the quarter, market watchers are quick to note that the latest set of results has still exceeded expectations. And the analysts believe the group is well on track to achieve full year estimates. 

Analysts divided as DBS beats estimates with 'solid' 3Q

SINGAPORE (Nov 12): Analysts are divided on DBS Group Holdings. 

On the one hand, the bank – Southeast Asia’s largest – clocked a “solid” quarter in 3Q19, soundly beating analysts’ estimates. But, on the other hand, some market watchers warn DBS could face headwinds from margin weakness and uncertainties in Hong Kong.

DBS saw its 3Q19 earnings jump 15% y-o-y to $1.63 billion, as total income for the quarter grew 13% to a new high of $3.82 billion on the back of loan growth, record fee income and higher trading gains. 

Will Genting Singapore's Japan IR gamble pay off?

SINGAPORE (Nov 8): On the surface, luck could be running out for Genting Singapore (GENS).

The integrated resort operator saw its earnings fall 24% to $158.9 million for 3Q19 ended September, revenue for the quarter slipped 7% to $596.1 million on the back of an 11% decline in revenue contribution from the gaming segment to $360.8 million. 

Analysts say Japfa poised for turnaround despite dismal 3Q19

SINGAPORE (Nov 4): On the surface, 3Q19 was a dismal one for Japfa, as the group booked earnings of US$9.6 million ($13.0 million), down 33% from US$14.3 million for the same period in the preceding year. 

Yet, the 3Q19 results were in line with analysts’ consensus expectations.

“The weak performance was driven by lacklustre contribution from Japfa Comfeed Tbk (JPFA), whose EBIT declined by 52.2% y-o-y to US$29.8 million,” says DBS Group Research lead analyst David Hartono in a Thursday report. 

Maybank upgrades Hi-P to 'hold' as recent SEAMCO acquisition opens doors to 'blue chip customer'

SINGAPORE (Oct 10): Maybank Kim Eng Research is bullish on Hi-P International, after the Mainboard-listed contract manufacturer’s recent acquisition opened doors for “immediate access to a blue chip customer”.

Hi-P on Tuesday announced the US$31 million ($42.5 million) acquisition of South East Asia Moulding Company (SEAMCO), a Singapore-based plastics manufacturer.

According to the group, the proposed acquisition is strategic as it would allow the group to tap on the strength, resources and business network of SEAMCO. 

Public transport operators unlikely to benefit much despite up to 7% fare hike this year

SINGAPORE (Sept 4): Singapore’s Public Transport Council (PTC) announced Tuesday that public transport fares could increase by as much as 7% in the fare review exercise for 2019, on the back of double-digit increase in energy prices.

This would mean that commuters paying by cards – approximately 90% of the total commuter base – could see fare prices increase by as much as 10 cents per trip.

Can Japfa overcome near-term cyclical pressures to see turnaround?

SINGAPORE (Aug 8): Lower average selling prices and higher costs drove earnings for agri-food company Japfa down to US$5 million ($6.8 million) for the 2Q19 ended June, a steep 83% drop from a year ago.

Segmentally, one of the key contributors of Japfa’s weak performance was Japfa Cornfeed Tbk (JPFA), which saw earnings decline 23% y-o-y to US$18.6 million. This was on the back of higher corn prices, which pressured margins, and softer broiler prices, which led to EBIT declining 27.2% y-o-y to US$65.2 million.

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