Phillip Securities Research

Banyan Tree kept at 'accumulate' amid continued weakness in Thailand

SINGAPORE (May 28): Phillip Securities Research is keeping its “accumulate” call on Banyan Tree Holdings (BTH) with an unchanged target price of 76 cents, despite 1Q19 results that came in under expectations.

The target price translates to FY19e price to net asset value (P/NAV) of 0.7 times, and represents a total return of close to 45%.

“Revenue and PATMI [were] below our expectations due to under-forecasted one-offs and continued weakness in Thailand,” says analyst Tara Wong.

Frasers Centrepoint Trust poised to ride on popularity of suburban retail malls, analysts say

SINGAPORE (May 27): Suburban retail malls are quickly gaining favour in Singapore, stealing local visitors away from the famed Orchard Road shopping belt. And Frasers Centrepoint Trust (FCT), which currently owns a portfolio of six suburban malls, looks poised to capitalise on this trend.

Already in FCT’s suburban mall portfolio are Causeway Point, Northpoint City North Wing, Changi City Point, YewTee Point, Anchorpoint, and Bedok Point.

SembMarine kept at 'hold' on expectations of slow recovery

SINGAPORE (Oct 30): Analysts are keeping their “hold” recommendations on Sembcorp Marine amid an expected slow recovery.

“Overall, despite the improved industry outlook, management mentioned ‘it will take some time’ before there is a sustained recovery in new orders, while competition remains intense and margins are compressed,” says OCBC Investment Research analyst Low Pei Han in an Oct 26 report.

OCBC has a fair value estimate of $1.73 on SembMarine.

SembMarine reported a loss of $29.8 million in 3Q18 on continued low overall business volume.

Analysts stay positive on SATS despite termination of Turkish Airlines in-flight kitchen

SINGAPORE (July 20): Analysts say an improved outlook for SATS on various levels outweigh any potential impact from the termination of its agreement with Turkish Airlines for the provision of in-flight catering services to airlines at the Istanbul New Airport.

“Following cessation of discussions with Turkish Airlines over the development of a flight kitchen in Turkey, we now raise our DPS going forward by 1 cent and 2 cents for FY19F and FY20F respectively,” says DBS Group Research’s lead analyst Alfie Yeo in a Friday report.

ComfortDelGro kept at 'accumulate' as ride-hailing congestion clears

SINGAPORE (July 10): Phillip Securities Research is keeping its positive outlook on the land transport sector as the storm appears to have blown over for the taxi industry.

“We believe the worst is over for the taxi industry, in view of the positive impact following the exit of Uber and resultant restructuring of the ride-hailing industry,” says analyst Richard Leow in a report on Monday.

While the taxi population continues to contract, Leow points out that the rate of decline shows sign of bottoming.

Oil prices expected to face volatility in near term

SINGAPORE (July 10): Phillip Securities Research says oil prices are expected to fluctuate widely in the near term as the oil market embraces higher volatility.

“On the one hand, the market will continue to price in geopolitical risks such as trade war tensions and output disputes. On the other hand, the proceeding of the Fed rate hike cycle and shrinkage of balance sheets in major central banks could slow the recovery of the global economy,” says analyst Chen Guangzhi in a Monday report.

shopper360 started at 'trading buy' despite CEO's resignation amid allegations of misconduct

SINGAPORE (June 13): Phillip Securities Research is initiating coverage on Malaysia-based marketing services provider shopper360 with a “trading buy” recommendation and a target price of 33 cents.

The target price is more than 83% higher than shopper360’s last traded price of 18 cents on May 8.

The brokerage’s coverage initiation comes despite shopper360 losing its CEO just two months ago.

ComfortDelGro back in the driver's seat with more level playing field ahead

SINGAPORE (June 8): Analysts say the restructuring of the ride-hailing industry after Uber’s exit from Singapore, as well as regulatory action coming into effect, will significantly level the playing field and have a positive impact on the taxi industry.

“User discounts and driver incentives for ride-hailing apps have been reduced since Uber exited the market,” says Phillip Securities Research analyst Richard Leow in a report on Friday. “As such, fare pricing has become more rational and there has been some flow of drivers back to taxis.”

Analysts see longer-term growth for SIA Engineering amid near-term challenges

SINGAPORE (May 17): Analysts believe SIA Engineering Company (SIAEC) could overcome near-term challenges and has positioned itself for longer-term growth.

“Over the near-term, we expect the core business to stay muted as the industry shifts towards an increase in demand for lower margin Line Maintenance on the new aircraft/engine models,” says OCBC Investment Research’s lead analyst Eugene Chua in a report on Wednesday.

Y Ventures started at 'buy' on strength of e-commerce growth

SINGAPORE (Jan 29): Phillip Capital is initiating coverage on data analytics-driven e-commerce firm Y Ventures Group with a “buy” recommendation and a target price of 70 cents.

The target price is based on an estimated price-to-earnings multiple of 30 times for FY18.

“It is particularly challenging to find the right valuation model for Y Ventures due to its unique business model within the region,” says Phillip’s research team in a report on Monday.

Be informed of the stories that matter