ANALYSTS SAY: Buy, Sell, Hold (13 Oct '17)

DUTY FREE INTERNATIONAL (DFIL SP)

2QFY18 Results: Still Seeing Weakness In Thai-Malaysian Border

DFIL reported its 2QFY18 results with revenue falling 5.5% yoy due to persistent weakness in the Thailand-Malaysian border from the implementation of GST in border towns. The group has declared a 0.5 S cent dividend to make up for the dividend cut in 1QFY18 and also bought back shares in 2Q18. Maintain HOLD with a slightly lower PE-based target price of S$0.33 (previously S$0.37) as we await more clarity on the situation in Thailand. Entry price: S$0.26.

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Singapore Press Holdings: FY17 earnings within expectations

SPH reported that FY17 PATMI increased 32.0% YoY to S$350m mostly due to a gain of S$150m from a partial divestment of the group’s stake in the regional online classifieds business. Excluding one-time charges, however, FY17 recurring earnings declined 20% YoY and FY17 operating revenues also declined 8% lower as the core media business continued to suffer the disruption from digital media. We deem this set of results to be mostly within our expectations. Since we have upgraded the stock to a buy rating three weeks ago, we note that the price has rebounded but, as we update our valuation model for the latest results and assumptions, our fair value estimate declines to S$2.93 versus S$3.25 previously. We therefore downgrade our rating to HOLD on valuation grounds. A final dividend of 9 S-cents per share has been proposed, bringing total dividends in FY17 to 15 S-cents.

Market Focus

Checking up gains

 Recent interest pick-up in O&M sector can continue on rig market recovery and higher oil prices

 Brent to average at c.US$60pbl in 2018, charts point to US$75pbl by 2H18

 Prefer big cap rigbuilders

 POSH or nothing for OSVs

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iFAST Corporation (IFAST SP)

A leading investment products supermarket

Catering to customer convenience

iFAST is one of Singapore’s early movers engaged in the distribution and administration of a wide suite of investment products from various thirdparty providers and across different asset classes on one platform. Providing the convenience of a one-stop shop for investors has driven 9% revenue CAGR for FY12-FY16. The company is optimistic about being able to continue to grow its assets under administration (AUA) over the medium term from a combination of higher penetration in its home market Singapore, further ramp-up in overseas operations in Malaysia, Hong Kong and China, and potential cross-selling opportunities.

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