| PHILLIP SECURITIES | CIMB |
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Cogent Holdings Ltd Another record year of higher profit FY16 S$136.7mn revenue in line with our forecast of S$135.1mn FY16 S$32.1mn NPAT in line with our forecast of S$31.6mn No final dividend declared (FY15: 1.88 cents, 35% payout) Long-term fundamentals riding on Jurong Island projects 4Q16 was a bad quarter for the stock, as it declined 35% from its closing high of $0.89 in September to its low of $0.58 at the end of December. However, it made a V-shaped recovery right on the first trading day of 2017, gaining 36% year-to-date. The more practical measure of return is that the stock is now 13.7% higher than $0.695, which was its price at the time of our last "Buy" call in November 2016.
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Sunningdale Tech Ltd Business environment still looks challenging ■ FY16 core net profit was spot on at 100% of our full-year forecast. ■ Although FY16 revenue growth was just 1.5% yoy, the automotive segment’s revenue rose 12% yoy. ■ Key one-off gains in FY16 were forex gain of S$9.0m and gain on sale of PPE of S$5.0m. ■ Management remains cautious on the outlook for FY17. ■ Maintain Add. Our target price is raised to S$1.56 on unchanged 0.8x FY17 P/BV.
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| OCBC | |
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Cache Logistics Trust: Capital recycling in motion Cache Logistics Trust (CACHE) recently proposed to acquire a freehold single-storey warehouse with ancillary office space in Melbourne, Australia, for a purchase consideration is A$22.25m. This translates into an initial NPI yield of 7.4%. The property is currently 100% leased to Spotlight, with a remaining lease term of ~4.5 years and there is a fixed annual rental escalation of 3.25% embedded in the lease. This proposed acquisition is expected to be funded by net proceeds from CACHE’s recent divestment of one of its Singapore properties which has a remaining land lease of ~17 years. We are positive on this capital recycling move given the favourable attributes of the proposed acquisition, coupled with the fact that it is expected to have minimal impact on CACHE’s gearing ratio. However, we maintain our HOLD rating with an adjusted fair value of S$0.79 (previously S$0.78). We believe a more compelling entry point is S$0.75 and below
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| RHB | RHB |
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China Everbright Water Sponge City Project To Support FY17 Maintain BUY with a lower TP of SGD0.54 (from SGD0.62, 23% upside) as we believe the worst is over for China Everbright Water. Management aims to complete the bulk of the Zhenjiang Sponge City Project by end- 2017. As such, we expect most of the revenue to be recognised next year, thereby supporting growth amidst a softer business outlook.
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Talkmed Group Ltd Awakening Of The Oncology Giant We believe that TalkMed, a top private oncology specialist, is likely to awaken from its long slumber due to: 1. Substantially reduced losses projected at its associates, especially in Hong Kong, in 2017F; 2. Steps taken to improve share liquidity (proposed bonus issue); 3. Inorganic growth via acquisitions domestically; 4. Hiring of new doctors. With an exciting outlook and attractive dividend yield of 4-4.5%, we initiate coverage with BUY and a DCF-backed TP of SGD2.07 (45% upside), implying 2017F P/E of 32x. We believe the stock remains substantially undervalued compared to its peers.
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