CIMB | PHILLIP SECURITIES |
UMS Holdings Ltd 2017-18F: record-breaking years for fab equipment
■ We reviewed the 3Q17F earnings guidance of UMS’s major customer Applied Materials (AMAT) & SEMI’s latest global semiconductor equipment spending forecast. ■ We note that industry conditions remain bullish, and AMAT is bullish on the sales outlook for its semiconductor business until 2020F. ■ We opine that UMS’s sales moderation in 2H17F will be less steep than what we feared earlier and earnings momentum could still be strong in 2H17F and FY18F. ■ In this update note, we roll over our valuation basis to FY18F, raise our earnings forecasts leading to higher implied P/BV multiple, and adjust for a 1-for-4 bonus issue.
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Previous target price of S$21.61 has been revised upwards to S$23.46. Reason for price upgrade is because we reduced the FY18e credit cost estimate to 28bps from 32bps. Maintain PSR’s 3Q17 PATMI estimate of S$850mn.
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UOB KAYHIAN | |
REITs – Singapore 2QFY18: Results Of MLT (In line); 3Q17: Results Of ART (In line)
MLT’s and ART’s results were in line with expectations. While the growth outlook for MLT in Singapore remains tepid, the acquisition of Mapletree Logistics Hub Tsing Yi in Hong Kong will increase diversification, lend stability and drive earnings forward. We maintain BUY with a higher target price of S$1.37 (from S$1.29). For ART, RevPAU was boosted by Belgium, Spain and the UK, but this was partially offset by Singapore, Japan and the US. Maintain HOLD with an unchanged target of S$1.18. Maintain OVERWEIGHT on the sector.
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OCBC | |
Wing Tai Holdings Ltd: Firm set of 1QFY18 results
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