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Boustead Singapore Ltd Solid FY17 performance amid challenging landscape
■ FY3/17 core net profit beat our expectation, at 118% of our forecast. The surprise was due to a still profitable energy division vs. our forecasted slight loss. ■ FY17 reported net profit of S$33.3m was boosted by one-off gains at BP level. Excluding one-offs, group core net profit fell 11% yoy in FY17. ■ Pure cash position of S$163m at BSL level (equivalent to 35% of group market cap). FY17 DPS of 2 Scts translates to a 2.3% yield. ■ Maintain Add call with higher target price of S$0.96, as we roll forward to base our valuation on a 20% discount to FY18F SOP.
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Wing Tai Holdings Ltd: Offer for Wing Tai Malaysia Berhad
Wing Tai Holdings Ltd (Wing Tai), together with its subsidiaries, has announced an unconditional voluntary take-over offer to acquire all issued ordinary shares of Wing Tai Malaysia Berhad (WTM) not already owned by the joint offerors for a cash offer price of RM 1.80 per share. Wing Tai has indicated that they intend to take WTM private by offering the minority shareholders of WTM the opportunity to exit and realize their investments for cash at the offer price. The offer will allow Wing Tai to further explore synergies and integrate their financial and operational resources, which could result in cost savings and improved operational efficiencies. Given the benefits of a potential WTM privatization and the reasonable offer price (the net asset value per WTM share was RM 2.70 per share as at end June 2016), we see this development as a positive one. Maintain BUY on Wing Tai with an unchanged fair value estimate of S$2.37. |
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DBS VICKERS |
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mm2 Asia (mm2 SP) : BUY FY2017 net earnings beat our expectations by 13% • FY2017 net profit of S$18.8m (+130% y-o-y) beat our expectations by 13% • Gross profit margin of 47.5% better than expected • Improving cash position • Maintain BUY; TP S$0.70 based on SOTP valuation
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SGX News Flash (SGX SP, BUY, TP:SGD9.10, Market Cap: USD5,699m) SGX Helping Tech SMEs Access Capital Markets SGX is nearing a deal with Singapore’s Infocomm Media Development Authority (IMDA) to develop a system designed to encourage local startups to list on the bourse, according to people familiar with the matter. Under the agreement, the bourse operator would help pair technology companies with investors with the aim of securing their listing in the city-state. SGX’s tie-up with the regulator will deepen the exchange’s so-called sector approach, with four industries, including technology, the focus of its listings strategy. SGX has not made any comments. We assume FY18 SADV of SGD1.35bn, and maintain BUY recommendation on SGX, with a TP of SGD9.10, pegged to 25x FY18 EPS (1 SD above the 2- year mean of 22.6x).
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