| CIMB | UOB KAYHIAN |
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Rotary Engineering Rotating back to higher order backlog ■ Rotary Engineering (RTRY) is an integrated engineering design, procurement, construction and maintenance (EPCM) company. ■ YTD, it has secured c.S$310m worth of contracts, above its average contract wins in FY14-16. At end-Mar 17, order backlog was S$435.9m (vs. S$152m at end-Dec 16). ■ It is currently trading at EV/order book of 0.4x vs. historical 5-year average of 0.6x. ■ Net cash per share position of 8 Scts (23% of current share price).
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Healthcare – Singapore Medical Tourism: Singapore Slows, Malaysia Grows We expect medical tourism growth in Singapore to decelerate going forward, as competitive pressure from neighbouring ASEAN countries such as Malaysia intensifies. Our top pick is Malaysia-based hospital operator HMI, which is gaining grounds in terms of quality and service offerings, but still at a fraction of the bill sizes in Singapore. While we remain positive on the long-term growth strategy of RMG and IHH, we believe mid- to near-term growth outlook will be hampered by elevated expansion cost. Maintain MARKET WEIGHT.
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OCBC |
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Hutchison Port Holdings Trust: Keeping our assumptions Hutchison Port Holdings Trust (HPHT) saw a spike in trading volumes and unit prices late last week, perhaps due to recent upward revisions in forecasts for global throughput volume by industry watchers such as Drewry and Alphaliner. The unit price rallied 5.9% last Thu alone, and last week’s trading volume stands at 161.5m units, compared to an average of 50.1m units/week in the prior ten weeks. After looking closer at Hong Kong and Shenzhen throughput data points and keeping tariff pressure in mind, we keep our forecasts for HPHT. We maintain HOLD with a fair value estimate of US$0.42, and see a better entry point below US$0.40.
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| DBS VICKERS | |
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Facing Moderating Growth • Exercise to evaluate focus shift for large caps with GDP growth moderating; STI turning sideways • Picks – CapitaLand Mall Trust, Thai Bev, ST Eng • Stocks with limited/no upside, or pullback risk - UOB, OCBC, GLP, Ascendas REIT and UOL • HPH Trust an exception – Chart shows upturn, first upside US$0.47 with support at US$0.42
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Check out our compilation of Target Prices
