RHB Research

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.

Long bond yields firm but REIT prices shielded from decline, analysts say

SINGAPORE (Dec 20): The FTSE ST Real Estate Investment Trust Index is up 23.5% this year, buoyed by three interest rate cuts by the US Federal Reserve. The Straits Times Index by contrast is up only 8.8% year-to-date.  This year, the US Federal Funds Rate declined from the 2.25% to 2.75% range down to 1.5% to 1.75% as at end-Oct, when the Fed announced its final rate cut for the year.


Analysts remain optimistic on CSE Global on strong order book, earnings visibility

SINGAPORE (Nov 11): The best is yet to come for CSE Global, say analysts, as the group has garnered four “buy” calls across brokerages DBS Group Research, CGS-CIMB, KGI Securities and RHB.

Barring a 4.7% decline in earnings to $5.03 million for 3Q19 ended September from $5.28 million in the previous year, the mainboard-listed technology solutions provider posted a solid set of results across a number of other key financial metrics.

Frasers Centrepoint Trust poised for re-rating as it enters next phase of growth

SINGAPORE (Sept 3): Units in Frasers Centrepoint Trust (FCT) have already surged more than 26% so far this year. But market watchers remain bullish on the retail REIT as it stands on the cusp of a re-rating.

For the latest 3Q19 ended June, FCT saw its income available for distribution rise 12.4% to $31.8 million, even as net property income dipped 1.1% to $34.6 million on the back of higher property expenses.

The higher expense arose from the absence of property tax refund which occurred in the same period a year ago.

ISOTeam poised to ride strategic acquisitions to stay out of the red

SINGAPORE (Aug 30): ISOTeam ended FY19 on a high, as it reversed out of the red on the back of higher revenue. Now, the building maintenance and estate upgrading company looks poised to ride a wave of strategic acquisitions to continue its growth trajectory.

The group saw its FY19 earnings surge 14-fold to $6.8 million, as full year revenue jumped 63% to $136.6 million.

All of the group’s segments recorded double-digit growth figures on the back of an increase in the number of projects as well as higher value projects such as the new nightclub at Marina Bay Sands.

ISOTeam powering up as regional player on back of Pure acquisition

SINGAPORE (Aug 1): As the Singapore construction sector awakens from its slump, ISOTeam is well placed to tap new markets and win more contracts.

Not only has the one-stop building and engineering company rolled out a new improved tender process that focuses on smooth work flow and quality, it recently acquired Pure Group, which will open the doors to clients beyond Singapore’s shores.

After fun at Funan, will CapitaLand Mall Trust turn its sights to Jewel Changi for added shine?

SINGAPORE (July 25): The reopening of CapitaLand Mall Trust’s (CMT) Funan shopping mall after a three-year redevelopment was met with much fanfare late last month.

Comprising a six-storey retail mall, two six-storey office blocks and a Lyf-branded serviced residence, the mixed-use development on North Bridge Road is one of 15 properties owned by CMT.

The retail portion comprises 507,000 sq ft of gross floor area and 320,000 sq ft of net lettable area, while the office component consists of 260,000 sq ft of GFA and around 210,000 sq ft of NLA.

Contract wins, acquisitions lift ST Engineering shares to multi-year high

SINGAPORE (July 5): It has been a busy couple of months for Singapore Technologies Engineering.

The Temasek Holdings-backed defence and engineering group in June inked a partnership agreement with telecommunications equipment manufacturer Nokia to collaborate on key technology areas such as 5G and Internet of Things (IoT).

Jumbo Group started at 'buy' by RHB on store openings, expansion of franchisee network

SINGAPORE (June 21): RHB Research is initiating coverage of Jumbo Group with a “buy” and a target price of $0.47 as the stock is expected to rerate upwards on the back of store openings and an expansion of its franchisee network.

The group’s total turnover has shown an increasing trend - totaling $153 million in FY18, up from $145 million in FY17. Analysts are forecasting a figure of $167 million for FY19F.

Suntec REIT kept at 'neutral' by RHB on operational weaknesses

SINGAPORE (June 20): RHB Research is maintaining Suntec REIT at ‘neutral’ despite an improved balance sheet, given operational weaknesses are expected to persist until 1H20.

This is because two of its seven assets are under development while Suntec City Offices is undergoing asset enhancements.

In Australia, its Olderfleet building is on track to be completed by mid-2020. Leasing progress has been healthy, with 76% pre-committed, and a heads of agreement signed for an additional 13%.

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