UOB KayHian

UOB KayHian 4Q earnings down by nearly half as investor sentiment turns cautious

SINGAPORE (Feb 28): UOB KayHian has reported 4Q earnings of $11.3 million, down 48.9% from a year ago.

The securities brokerage says trading volumes across regional markets where it operates started the year strongly but investor sentiment turned cautious in the second half of the year, especially in the last quarter arising from trade tensions and rising interest rate environment.

Group full-year pre-tax profit decreased 4.1% to $86.4 million and after tax profit decreased slightly by 2.2% to $75.8 million.

CDL Hospitality Trusts to ride on another likely record year of visitor arrivals: UOB

SINGAPORE (June 14): UOB KayHian is maintaining its “buy” on CDL Hospitality Trusts (CDLHT) with $1.95 target given 2018 is shaping up into another record year for visitor arrivals in Singapore amid a slowdown in the supply of new hotel rooms.

UOB recently met with CDLHT management to hear the outlook on its operating performance, acquisition plans and the Singapore hospitality segment.

Exposure to automotive sector and acquisitions by insiders keep Sunningdale Tech at 'buy'

SINGAPORE (May 28): UOB KayHian says the correction of Sunningdale Tech is overdone and that the stock is trading at rock-bottom valuations with an attractive yield.

After its 1Q18 results announcement, Sunningdale’s share price has retreated by more than 20%.

At $1.45, the stock is trading at 0.5 times 2018F P/B and 7.1 times 2018F P/E compared with other plastic injection moulders such as Memtech International which is trading at close to 1.1 times 2018F P/B and 11.0 times 2018F P/E respectively.

Look beyond sale of West Rigel rig at stronger balance sheet for SembMarine

SINGAPORE (Dec 4): UOB KayHian is maintaining its “buy” call on Sembcorp Marine with an unchanged target price of $2.10 on news of a potential sale of West Rigel rig.

“An improving rig market, especially for harsh environment semi-submersibles, will likely see SembMarine being able to divest the West Rigel at a favourable price,” says lead analyst Foo Zhi Wei in a Monday report.

This will improve its balance sheet profile, putting prior concerns of a stretched balance sheet to rest.

UOB KayHian posts 24% rise in 3Q earnings to $18.2 mil on substantially higher trading volumes

SINGAPORE (Nov 8): Brokerage house UOB KayHian reported a 23.9% rise in 3Q earnings to $18.2 million from $14.7 million a year ago as trading volumes in major regional markets where it operates rose substantially.

Commission income grew 23.1% to nearly $63 million on higher market volumes. Interest income increased 14.1% to $22.4 million with higher financing activities. Other operating revenue increased 10.5% to $6.6 million with higher corporate finance activities.

GL's potential for privatisation, asset disposal gets it a starting ‘buy’

SINGAPORE (Oct 31): UOB KayHian is starting GL Limited with a “buy” with $1.185 target price given its potential for privatisation as well as asset disposal.

The hotel operator is also seeking to unlock value through non-core asset disposal with up to US$80 million gains expected, says analyst Edison Chen in a report for retail investors on Tuesday.

While GL has been exploring options to sell its casino and Hawaii properties for a while, there was an offer for its casino business and GL has finally posted its Molokai property for sale with strong buyer interest.

Positive news for SembMarine if $1.7 bil Shell Vito project win is true

SINGAPORE (Oct 25): UOB KayHian is keeping its ratings for Sembcorp Marine unchanged for now despite reports the yard had won the Shell Vito project.

No formal value was provided in the reports but total contract value is estimated at US$1.25 billion ($1.7 billion).

The latest win should bring SembMarine's pipeline of project secured for 2018 to between $1.2 billion and 1.9 billion, says UOB.

“Positive catalysts outweigh downside risks and we maintain 'buy' with unchanged target price of $1.90,” says lead analyst Foo Zhi Wei in a Monday report.

DBS 3Q results preview: Higher provisions offset by consolidation of acquisitions

SINGAPORE (Oct 24): UOB KayHian expects DBS’ consolidation of ANZ’s wealth management and retail banking businesses in Singapore and Hong Kong to boost loan and fee income growth in 3Q.

In addition, downsizing of the Fed’s balance sheet and more interest rate hikes in the US will be positive for DBS due to its strong deposit franchise.

“Maintain ‘buy’ with target price of $24.48,” says analyst Jonathan Koh.

Ellipsiz’s sale of PCB could mean special payout for shareholders

SINGAPORE (Sept 15): Ellipsiz investors could be due for a big distribution payout in the near future, says UOB KayHian.

Ellipsiz in August entered into a sale and purchase agreement to dispose of the probe card business (PCB) to Nidec Corporation for a total consideration of US$65 million ($87.5 million).

Keppel T&T’s supercharging strategy brings uncertainty but faster development, benefits

SINGAPORE (Sept 8): UOB KayHian is maintaining its “buy” call on Keppel T&T given the group’s data centre (DC) strategy of “supercharging” the development cycle using Alpha DC Fund (ADCF).

Although this strategy creates greater uncertainty in the short term, it enables the manager to develop more than one project at a time.

It will also speed up development of the properties given demand for cloud-enabled DCs remain strong with players clamouring for larger critical capabilities and higher power densities.

Be informed of the stories that matter