Excerpts of latest analyst reports

Maybank KE says buy Noble & Wilmar, Sell Olam

Noble_chrt1.13
Noble stock is way down from its 2011 heights. Chart: Bloomberg

Ø  We  expect  2013  to  herald  a  healthy rebound in share prices. We believe  expectations  have  now swung far too negative on earnings and current   valuations   represent  good  entry  points  for  longer-term exposure.

Ø  NOBLE  is  our  top  pick  within  the  sector. We believe it is most leveraged to a China recovery and has the healthiest balance sheet with investment grade debt ratings. Maintain BUY.

Ø  We  expect WILMAR to show earnings recovery in 2013 and to benefit from lacklustre  CPO  prices and turnover. Export tax changes will allow its benefits of scale to shine through. Upgrade to BUY.

Ø  We  are  concerned  about  Olam’s  “Capex  Cliff”,  with  both  debt refinancing and capex commitments front-loaded over the next 18 months. We also deem consensus too optimistic on earnings. Maintain SELL.

 



DBS Vickers highlights potential beneficiaries of 7m-population target


buses
ComfortDelGro operates buses, taxis and trains.
NextInsight file photo

The Singapore government will release the Population White Paper soon, which is expected to draw great interest. We are expecting c.7m population parameter.

Medium term beneficiary will be the construction sector, while longer term transport, property and healthcare will benefit as well.

LTA has started the ball rolling with announced plans for doubling of rail lines to 360km by 2030. Our picks are ComfortDelgro (BUY, TP: S$2.05) over SMRT (FV, TP: S$1.50), Pan United (BUY, S$1.02) and Tat Hong (BUY, S$1.80) over contractors and property plays.

Longer term, the oversupply of property seems to be less of an issue assuming a 7m parameter. However, recent policy measures may continue to cast a pall over stock price.

Our picks are Wing Tai (BUY, TP: S$2.33) trading at 0.63x P/NAV, CapitaLand (BUY, TP: S$4.09) for its diversified exposure and Mapletree Commercial Trust (BUY, TP: S$1.35).

Sin Heng (NR,Fair Value: S$0.29) and CordLife (NR, Fair Value: S$0.65) are other potential beneficiaries.

 



StanChart has $1 target for CSE

Analyst: Stephen Hui

We reiterate our Outperform rating on CSE Global (CSE) with a price target of SGD 1.00, offering 28% potential upside.

 We cut our 2012E and 2013E EPS by 19% and 10%, respectively, to account for management‟s lower guidance but we believe CSE‟s new order wins should boost investor confidence in the company.

 We value CSE Global based on a Gordon Growth Model and our price target translates to 9x 2013E PER. CSE offers an attractive yield of 5.4% (2013E).

Valuations. CSE is currently trading on 7.x 2013E PER, with a 5.4% yield (2013E). We value the stock on a Gordon Growth Model, using conservative assumptions of equity beta of 1.25 and long-term growth of 0% to incorporate a potential higher risk with this stock.

Over the next three-to-five years, we believe significant potential exists in CSE‟s UK healthcare, Australia and environmental businesses.

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Counter NameLastChange
AEM Holdings2.3800.080
Avi-Tech Electronics0.265-
Best World1.7100.010
Broadway Ind0.095-0.001
China Sunsine0.390-
ComfortDelGro1.3700.010
Delfi Limited0.9400.010
Food Empire1.4300.010
Fortress Minerals0.260-0.020
Geo Energy Res0.355-0.005
GSS Energy0.027-
Hong Leong Finance2.4800.010
Hongkong Land (USD)3.060-0.090
InnoTek0.440-
ISDN Holdings0.320-
ISOTeam0.035-
IX Biopharma0.0460.005
Jiutian Chemical0.024-
KSH Holdings0.250-
Leader Env0.050-
Medtecs Intl0.1320.001
Nordic Group0.335-
Oxley Holdings0.0910.001
REX International0.138-0.008
Riverstone0.6700.005
Sinostar PEC0.135-
Southern Alliance Mining0.600-
Straco Corp.0.500-
Sunpower Group0.220-
The Trendlines0.085-
Totm Technologies0.021-
Uni-Asia Group0.800-0.015
Wilmar Intl3.330-0.030
Yangzijiang Shipbldg1.770-0.010
 

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