QT VASCULAR LTD 510.SI QT Vascular (QTVC SP)
- QT Vascular (QTVC) is engaged in the the design, assembly and distribution of balloon catheters used in angioplasty.
- The company has been loss-making for at least the past 6 years due to a combination of high expenses (R&D, marketing, litigation) and sales volumes below break-even levels; it is now considering a sale of key assets.
- At 4.1x Price/Sales, the group trades at a c.27% premium to regional and global medical device makers.
MAPLETREE COMMERCIAL TRUST N2UY.SI Mapletree Commercial Trust (MCT SP) - Proposed acquisition of Mapletree Business City
- Proposed acquisition of Mapletree Business City (MBC) Phase 1 for S$1.78bn or 5.6% implied FY15/16 NPI yield.
- 3% accretion to proforma 6MFY17 DPU and 2% uplift to NAV per unit.
- New exposure to the business park segment and Singapore’s decentralisation theme.
UG HEALTHCARE CORPORATION LTD 41A.SI UG Healthcare Corp - Execution is key
- Established Malaysian glove manufacturer with plans to grow its global distribution network
- Potential beneficiary of a greater shift in pricing and bargaining power to distributors as competition is expected to heat up ahead
- Further prospects ultimately a factor of the Group’s ability to bring plans to fruition
OUE HOSPITALITY TRUST SK7.SI OUE Hospitality Trust - Well located assets
- 1Q16 DPU of 1.1 Scts (-26%) y-o-y was below expectations.
- Drag from recent rights issue and weaker contribution from Mandarin Gallery.
- Hotel portfolio resilient with 1Q16 RevPAR up 1% y-o-y.
COSCO CORPORATION (S) LTD F83.SI Cosco Corporation - Watch for parent’s restructuring
- Fourth consecutive quarter of losses in 1Q16.
- Net gearing of 3.9x is a concern; possible parental support?
- Watch for parent’s restructuring.
- Upgrade to HOLD; TP raised to S$0.30.
JAPFA LTD UD2.SI UMS HOLDINGS LIMITED 558.SI MM2 ASIA LTD 43D.SI NAM CHEONG LIMITED N4E.SI CHINA MERCHANTS HLDGS (PACIFIC) C22.SI May-16: Top Conviction Picks
- With volatility likely to increase, we prefer to go with defensive and resilient picks.
- Defensive yield picks: UMS Holdings and China Merchants Pacific offer prospective yields of > 8%. Meanwhile, Japfa has demonstrated resilience following its recent strong 1Q results, and mm2 Asia is poised to post good earnings growth ahead on growing local productions and recurring income from recently acquired businesses (including cinemas).
- We also reiterate our FULLY VALUED call on Nam Cheong, which could see significant downside risk.
STARHUB LTD CC3.SI StarHub - Solid earnings; less exciting operating metrics
- 1Q16 net profit of S$92.8m (+26% y-o-y) was better than our S$88-90m estimate due to the larger cost savings.
- Mobile segment gained subscribers but Broadband & Pay TV segments lost subscribers on a worrying note.
- Management maintains its 20-Sct dividend guidance for 2016. We retain our Fully Valued call with unchanged TP of S$3.30.
PACC OFFSHORE SVCS HLDG LTD U6C.SI PACC Offshore Services Holdings - Jostling amid the weak environment
- 1Q16 in line; profits boosted by JV performance
- Still no news on a contract for the second SSAV which is scheduled for 2Q16 delivery
- No cash-flow issues; loan facilities are adequate
UMS HOLDINGS LIMITED 558.SI UMS Holdings - Play on dividends ahead of recovery
Entrenched relationship with Applied Materials provides earnings stability and underpins high yield.
- UMS Holdings (UMS) has partnered with Applied Materials for more than a decade.
- Notably, despite its exposure to a cyclical industry, UMS’ earnings have stabilised significantly since it was awarded the Endura contract in 2010.
SMRT CORPORATION LTD S53.SI SMRT - Key takeaways from post-results group meeting
- SMRT's management reiterated key strategic thrusts and its focus on sustainable growth in a well-attended post-results investors’ lunch meeting
- Investors’ focus on New Rail Financing Framework
- Maintain view on counter, and forecasts
SEMBCORP INDUSTRIES LTD U96.SI Sembcorp Industries - Slowly but steadily
- 1Q16 below, dragged by underperformance of SMM and TPCIL
- Trimmed FY16-17F earnings by 6-8%
- TPCIL to contribute more meaningfully in 2H16
EZION HOLDINGS LIMITED 5ME.SI SEMBCORP INDUSTRIES LTD U96.SI YANGZIJIANG SHIPBLDG HLDGS LTD BS6.SI Oil & Gas - Sinking further?
- 4Q15 saw the realisation of the long anticipated impairment/provisions
- More could be seen for Ezra, Cosco and Keppel in 2016
- Ezion and Sembcorp Industries (SCI) remain our BUYs among Singapore O&G stocks
Continue Reading »
ASCOTT RESIDENCE TRUST A68U.SI Ascott Residence Trust - Second bite of the big apple
- Increased US presence with second hotel acquisition in New York for S$218m
- S$100m equity placement at S$1.055 to fund acquisition
- 0.3-1.4% uplift to FY16-18F DPU
- DPU payment of 1.5-1.6 Scts to existing unitholders prior to placement
MERMAID MARITIME PUBLIC CO LTD DU4.SI Mermaid Maritime - More pain ahead
4Q15 results were weak; impairments larger than expected.
- The Group incurred a loss of US$245m for the quarter as Mermaid booked a US$163m impairment charge on its assets and a US$65m share of impairment from associate Asia Offshore Drilling (AOD), suggesting a roughly 40% haircut on vessel/rig asset values.
- Subsea vessel utilisation dipped to 56% in 4Q15, down from ~80% in the previous two quarters, a result of both a challenging subsea market and seasonal factors.
DEL MONTE PACIFIC LIMITED D03.SI Del Monte Pacific - Turned profitable but below expectations
- 3Q16 earnings below expectations
- US operations impacted by loss of government contract, higher expenses
- FY16F earnings revised up on one-off gains, but core profits lower
M1 LIMITED B2F.SI STARHUB LTD CC3.SI Telecom Sector - Why a Price War Now?
- Effective pricing for higher-end data plans slashed by 25-50% even before the spectrum auction in 3Q16.
- Intention to discourage the entry of new player even at the cost of near-term revenue; FY16F earnings may be reduced 5-8% for M1 and StarHub in our estimates.
- Maintain FULLY VALUED on StarHub and HOLD on M1.
SEMBCORP INDUSTRIES LTD U96.SI SEMBCORP MARINE LTD S51.SI KEPPEL CORPORATION LIMITED BN4.SI Singapore Rigbuilders - Looming credit risks?
- Moody’s downgrade tightens drillers’ access to funds
- Triggering another wave of deferment and cancellation of rig orders
- Transocean delays five jack-ups with Keppel by up to two years; further push-back likely for SMM’s drillships
KEPPEL CORPORATION LIMITED BN4.SI Keppel Corp - More provisions?
Reiterate HOLD with TP of S$5.25.
- We prefer to monitor the development in Brazil and oil market before revisiting Keppel. We are wary of potential provisions of up to S$200m for the higher-risk non-Sete projects.
- We have trimmed our FY16-17 PATMI by 1.5-2.8% in response to the further delay of Transocean units.
PlantationWILMAR INTERNATIONAL LIMITED F34.SI FIRST RESOURCES LIMITED EB5.SI INDOFOOD AGRI RESOURCES LTD 5JS.SI BUMITAMA AGRI LTD P8Z.SI GOLDEN AGRI-RESOURCES LTD E5H.SI Plantation Companies - Near-term strength
- Malaysian Feb 16 output of 1.043m MT was 7% lower than our forecast of 1.119m MT.
- But 15% m-o-m drop in exports kept end-Feb 16 inventory level of 2.169m MT within expectations.
- Output to recover in Mar 16; but so will exports; endMar 16 Malaysian palm oil stockpile may drop to 2.022m MT.
DAIRY FARM INT'L HOLDINGS LTD D01.SI Dairy Farm - Turning more efficient
- Expect more efficient operations by FY17F
- We believe IT, procurement and supply chain investment should yield results by FY17F
- 2H15/FY15 earnings within expectations
- Maintain BUY, TP US$7.03
Continue Reading »
:.
