Phillip Capital

Will OCBC's interim dividend surprise be enough to snare investors?

SINGAPORE (Aug 6): Oversea-Chinese Banking Corporation (OCBC Bank) surprised market observers with a higher-than-expected interim dividend payout of 25 cents per share for the 1H19 ended June, 25% higher than a year ago.

OCBC’s 2Q19 earnings rose 1% to $1.22 billion – some 5% above Bloomberg consensus expectation of $1.16 billion – on the back of stronger net interest margin (NIM) and loan growth.

Brokers unanimously positive on NetLink NBN's outlook after a satisfying FY19

SINGAPORE (May 15): OCBC Investment Research, DBS Vickers Securities and Maybank Kim Eng are maintaining their “buy” calls on NetLink NBN Trust (NLT) with the respective price targets of 95 cents, 90 cents and 83 cents.

Likewise, Phillip Capital continues to rate the trust at “accumulate” at a 93-cent price target.

UOB valuations & yield still deemed attractive after share price run-up

SINGAPORE (May 6): Jefferies, DBS Vickers Securities and RHB Research are maintaining their “buy” calls on United Overseas Bank (UOB) with the respective price targets of $31, $29.20  and $30.80 following last week’s release of the bank’s 1Q19 earnings, which grew 8% on-year on higher interest income.

Poor segment performance & competition still a drag on StarHub's earnings, say analysts

SINGAPORE (Feb 18): RHB Research and UOB Kay Hian are maintaining their “neutral” and “sell” calls on StarHub with target prices of $2.02 and $1.45, respectively.

Meanwhile, Phillip Capital has downgraded its rating on StarHub to “neutral” from “accumulate” with a lower target price of $1.58 compared to $1.88 previously.

This comes after the telco concluded FY18 with 26.2% lower earnings of $201.5 million and announced a final dividend of 4 cents.  

SIA Engineering hit by target price cuts after 3Q's negative surprise

SINGAPORE (Feb 11): Maybank Kim Eng is maintaining its “buy” call on SIA Engineering (SIA EC) with a lower price target of $2.85 compared to $3 previously after the group reported a 40% y-o-y decline in 3Q19 earnings due to one-off items.

The research house has cut its FY19-21 PATMI estimates by 6%-13%, but remains positive on the stock’s medium-term outlook considering its management initiatives and current valuations.

The ups and downs of Frasers Centrepoint Trust's 1Q19 performance

SINGAPORE (Jan 23): OCBC Investment Research and Phillip Capital are maintaining their “buy” and “neutral” calls on Frasers Centrepoint Trust (FCT) with the respective fair value and price target of $2.50 and $2.21.

This comes post the release of the trust’s 1Q19 results which saw 1Q DPU grow 0.7% y-o-y to 3.02 cents, in line with both research houses’ expectations.

Go for lower beta, dividend-paying stocks this year after a disappointing 2018: Phillip

SINGAPORE (Jan 4): Phillip Capital is maintaining its Straits Times Index (STI) target of 3,400 in Oct 2019 – which pegs the market at 13.5 times, or around its ten-year average valuation – as the research house advocates a lower-beta equity portfolio for the year, with an emphasis on dividend-paying stocks.

In a Friday report, head of research Paul Chew opines that the Singapore market is currently cheap on a historical basis, as the STI currently trades at 1 SD of its 10-year historical valuations on a forward P/E of 12 times, or P/B of 1 times.

Phillip Capital ceases coverage on Nam Lee, but expects financials to remain strong in FY19

SINGAPORE (Dec 3): Phillip Capital is ceasing coverage on Nam Lee Pressed Metal Industries due to a “re-allocation of internal resources”.

The research house’s last rating for Nam Lee was “buy” with a target price of 51 cents.

Commenting on the group’s financial performance for FY18, analyst Richard Leow notes in a Nov 29 report that Nam Lee’s PATMI came in line with expectations, although revenue was 5.1% lower than forecast.

CapitaLand's earnings uptrend likely to remain intact throughout FY18: Phillip

SINGAPORE (Nov 22): Despite a change of analyst, Phillip Capital is maintaining CapitaLand at “accumulate” with a lower target price of $4 compared to $4.19 previously, translating to a FY18E P/NAV ratio of 0.72 times.

This comes after the real estate developer recently released its 3Q18 results where earnings rose 13.6% on-year to $362.2 million on lower costs and expenses, and in line with the research house’s forecasts.

Health Management International's outlook still healthy despite 1Q earnings miss, say analysts

SINGAPORE (Nov 19): Phillip Capital and CGS-CIMB Research are maintaining their “buy” and “add” calls on Healthcare Management International (HMI) with the respective target prices of 77 cents and 73 cents.

This comes even as the group’s latest set of 1Q19 earnings fell short of both research houses’ estimates due to financing costs and gestation losses incurred from StarMed, its 70%-owned subsidiary.

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