Shared by: Lionel Lim, remisier Phillip Securities Website:http://lionelltp. Please contact me at 65 90400848 or email me at |
CIMB - 24 August 2016
Sembcorp Marine Long awaited full control, at a price
■ We deem SMM’s acquisition of the remaining 15% stake in PPL Shipyard at US$115.06m (1.01x P/BV) as expensive.
■ Given the dire order outlook and potential for cancellations from existing order book, having full control of PPL Shipyard may not bring in incremental investment merits.
■ Maintain Reduce and target price of S$0.90, still based on 0.7x P/BV.
https://brokingrfs.cimb.com/mjQw1VM_SQakkPFGW9xJX49p2PwuRxSk8_4Lqzd303AEHTXDmp--VQFN4PfHreAAurYdZLiluC97Rw2.pdf
[Maybank Kim Eng]
Best World International (BEST SP) The Best is Still Ahead
Direct seller making a breakthrough BEST is a multi-channel distributor of skincare and wellness products with presence in 12 countries in Asia. Growth prospects are attractive as BEST scales up in the fastest growing markets and we expect FY16E earnings to reach a record high with 180% YoY growth. Strong growth in BEST’s largest market, Taiwan, should continue as it reaches inflection point, after years of nurturing. Recent approval of China license will support rapid expansion. BEST trades at 45% discount to peers’ FY17E P/E despite having the highest EPS growth. Initiate BUY with SGD2.63 TP.
https://factsetpdf.maybank-ke.com/PDF/32977_CN__be212cc9d9ff41c1b583eecafe2b8b74.pdf?
UOBKH:
SMRT Corporation (MRT SP) Accept The Offer And Move On
We hosted SMRT in an investor presentation where management shared details of the NRFF, as well as the privatisation of SMRT by way of Scheme of Arrangement (SOA). Management also addressed key questions raised, which mostly revolved around the mechanism of the SOA, as well as the reasons for transitioning to the NRFF. We re-iterate our recommendation to accept the offer price of S$1.68, which we believe provides a more palatable exit as fundamentals could deteriorate further.
OIR SG: Wing Tai Holdings Ltd - Underwhelming results within expectations
WING TAI HOLDINGS LTD | BUY
UNDERWHELMING RESULTS WITHIN EXPECTATIONS
- FY16 results broadly in line
- Expect conditions to remain difficult
- Nouvel 18 divestment to boost balance sheet
Wing Tai reported a FY16 (ending June 2016) PATMI of S$7.1m, which was 95% lower YoY mainly due to weaker contributions from its property development business, lower fair value gains on investment properties and the absence of a one-time divestment gain in FY15. In terms of the topline, FY16 revenues also decreased 20% YoY to S$544.5m and were mostly derived from progressive sales from The Tembusu, additional units sold in Le Nouvel Ardmore in Singapore, The Lakeview in China and also Phase 2 of Jesselton Hills in Penang. We had expected significantly weaker profits from the group due to challenging market conditions and judge FY16 results to be broadly within expectations. The group has proposed a total dividend of 6.0 S-cents (3 S-cents first and final dividend and 3 S-cents special dividend), up from 3.0 S-cents in the previous year. Given softer residential assumptions in our model, our fair value estimate dips to S$2.37 (versus S$2.43 previously). Maintain BUY.