RHB Research

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%.

ComfortDelGro raised to 'neutral' by RHB as valuations look stretch after STI outperformance

SINGAPORE (June 18): RHB Research has upgraded ComfortDelGro (CD) to ‘neutral’ as the stock looks fairly priced now although it remains confident over the company’s growth recovery.

“While we like the defensive nature of its earnings, investors should consider buying at a lower price (about $2.40),” says analyst Shekhar Jaiswal in a Tuesday report, adding that the stock is trading at 17.3 times 2019 earnings versus its five-year average of 15 times.

'Major bargain' Oxley started at 'buy' as RHB brushes aside concerns over high gearing

SINGAPORE (June 13): RHB Research is initiating coverage on property developer Oxley Holdings with a “buy” recommendation and a target price of 41 cents.

The target price is pegged to a 45% discount to its revalued net asset value (RNAV) of 74 cents, and represents an upside of 32% from its current trading price.

“Concerns over its gearing level are overdone, as it should be lowered by key asset sales – especially from Chevron House and its hotels along Stevens Road,” says lead analyst Jarick Seet in a report on Thursday.

CityDev's takeover offer of M&C likely to get approval from minority shareholders: RHB

SINGAPORE (June 10): RHB Research says CDL’s revised takeover offer to acquire the remaining 35% stake of its subsidiary Millennium & Copthorne hotels (M&C) is likely to gain approval from minority shareholders.

See: CityDev launches another takeover bid for Millennium & Copthorne Hotels with 685 pence per share offer

Why RHB remains positive on APAC Realty despite 1Q earnings miss

SINGAPORE (May 29): RHB Research is reiterating its “buy” call on APAC Realty while lowering its target price on the stock to 67 cents from 72 cents previously after cutting FY19-21F earnings to account for reduced private resale volume assumptions.

Singapore's weak 1Q GDP growth signals tough times ahead: RHB

SINGAPORE (May 28): RHB Research is turning negative on Singapore’s short-term economic outlook on expectations of a prolonged slowdown in the electronics sector as well as weaker global growth prospects.

As such, the research house is revising its 2019 GDP growth estimate downward to 1.8% from 2.5% previously.

Time to 'buy' MindChamps as growth initiatives bear fruit: RHB

SINGAPORE (May 27): RHB Research continues to keep MindChamps Preschool at “buy” at a lower target price of 83 cents compared to 87 cents previously, indicating a 26% upside plus 2.2% yield.

The reduced target price comes after cutting FY19-20F earnings by 7% and 11%, respectively, upon management indications that adopting SFRS 16 has negatively impacted the group’s 1Q19 pre-tax profit by about $90,000 or -15%.

RHB keeps top consumer sector pick Delfi at 'buy' given inexpensive valuation, robust revenue and margins growth

SINGAPORE (May 27): RHB Research is reiterating its strong “buy” call on Delfi with a target price of $1.68, which implies 28 times FY19F P/E and implies 24% upside and 2.5% dividend yield.

This comes after the confectionery manufacturer posted 21.6% y-o-y higher 1Q earnings of $12.6 million on the back of revenue growth and an improved gross margin, post initiatives to cull less-profitable stock keeping units (SKUs) as well as due to higher sales of premium products.

Brokers slash estimates for Bumitama after 1Q disappointment, but say production remains strong

SINGAPORE (May 17): DBS Vickers Securities and UOB Kay Hian are maintaining their “buy” recommendations on Bumitama Agri Limited (BAL) with the respective price targets of 69 cents and 81 cents, even as the palm oil producer missed both research houses’ expectations with its latest set of quarterly results.

RHB Research, on the other hand, remains “neutral” on the stock while lowering its P/E based target price to 62 cents from 67 cents previously to reflect a 9% downside.  

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