| MAYBANK KIM ENG | RHB |
|
Singapore Market Monitor Drafting on cyclical tailwinds What a difference three quarters make
The strength in macro data continues to surprise on the upside and there are indications that the tech-related manufacturing recovery is spreading to other sectors. Quarter-end Jun earnings were better than we expected both on quantum and quality factors. Our 12-month market outlook is incrementally more positive and we believe index levels and valuations could hold further headroom. We Overweight cyclical sectors, banks, property and gaming, and highlight our top sector picks.
|
Venture Corp Expect a Sequential Improvement In 3Q17 Results
Venture’s CEO making an impactful SGD9.5m purchase of its own shares is a testament of the company’s solid fundamentals and anticipated robust results ahead. Its continued value creation and new major product launches scheduled for 4Q17 lead us to believe that this positive momentum may likely continue through 3Q17 and it may even deliver QoQ earnings growth as well. Hence, we lift our FY17F-18F PATMI by 10%, keep our BUY call and increase our DCF-based to SGD19.70 TP (from SGD14.70, 14% upside), which also implies a 19x 2018F P/E.
|
| UOB KAYHIAN | |
|
Thai Beverage (THBEV SP) Still In Good Spirits Despite Excise Tax Hike
We see minimal impact from the upcoming excise tax hike, where we estimate only a 1-4% impact on ASPs of beer and spirits. Also, given the manageable increase, THBEV should be able to pass through costs fully, with an opportunity to raise prices higher than the tax hike. Meanwhile, we expect 4Q17 sales volume to benefit from stockpiling by agencies prior to the excise tax hike, where 1Q18 will see a strong turnaround due to the end of the mourning period. Maintain BUY with SOTPbased target price of $1.09.
|
|
Check out our compilation of Target Prices
