OCBC INVESTMENT RESEARCH this afternoon released a list of companies under its coverage with specific exposure to Europe, including companies operating in sectors including consumer goods, property and transportation.
A key caveat highlighted by OCBC: “This list is simply an overview of companies with direct exposure to Europe. Keep in mind that a broader set of companies may be affected by the problems in the Eurozone - for instance, austerity measures could reduce aggregate demand and impact world trade or even affect foreign direct investment into Asian countries.”
| |
| COMPANY |
% REVENUE FROM EUROPE |
ANALYST |
RATING |
FAIR VALUE |
COMMENTS |
| HTL |
64 |
Lee Wen Ching |
Not rated |
|
| Goodpack |
|
Kevin Tan |
Buy |
S$1.77 |
- North America and Europe contributed 55.7% of FY09 revenue.
- Based on number of offices in Europe, we estimated that Europe might make up 50% of the contribution. |
| Olam |
26.5 |
Lee Wen Ching |
Buy |
$3.61 |
Asia and Middle East are its largest markets, accounting for 38% of revenue. |
| SATS |
23.8 |
Kevin Tan |
Buy |
S$3.27 |
UK contributed 23.8% (S$366.1m) to FY10 revenue. |
| ComfortDelGro |
22 |
Kevin Tan |
Not rated |
- UK/Ireland contributes 22.0% (S$168.8 m) to 1Q10 revenue and 24.6% (S$749.3 m) to FY09 revenue.
- The group said expressly that revenue from its bus business in UK is expected to be impacted by translation of the weaker pound. |
NOL
|
20% of volume |
Lee Wen Ching |
Buy |
$2.35 |
- Asia/Middle East route is its largest revenue contributor at 41% of volume.
- Expected to return to profitability in FY10. |
ST Engineering
|
13.8 |
Kevin Tan |
Hold |
S$3.05 |
Europe contributed 13.8% (S$188.3 m) to 1Q10 revenue |
| Singapore Airlines |
12.1 |
Kevin Tan |
Not rated |
Europe contributed 12.1% (S$1.53b) to FY10 revenue. |
| Koda |
12 |
Lee Wen Ching |
Buy |
$0.30 |
- US is its largest market
- Expected to return to profitability in FY10. |
| Noble Group |
10% of volume |
Lee Wen Ching |
Buy |
S$2.42 |
China is its largest market, accounting for 39% of total volume |
CapitaLand
|
8 |
Foo Sze Ming |
Buy |
$4.97 |
Exposure largely from serviced residences in Europe. Inclusive of UK |
| Micro-Mechanics |
7 |
Kevin Tan |
Buy |
$0.57 |
|
| Valuetronics |
6.7 |
Kevin Tan |
Buy |
$0.32 |
Europe contributed 6.7% (HK$75.7 m) to FY10 revenue. |
| City Developments |
6.5 |
Foo Sze Ming |
Hold |
$11.11 |
From hotel operations under Millennium & Copthorne. |
| SIA Engineering |
3.4 |
Kevin Tan |
Hold |
$3.85 |
Europe contributes 3.4% (S$34.7 m) to FY10 revenue. |
Source: OCBC Investment Research |
