Excerpts from RHB Research report

Analysts: Juliana Cai, CFA, Leng Seng Choon CFA, Vijay Natarajan, Jarick Seet, Shekhar Jaiswal.

 

Consumer: OVERWEIGHT with preference for companies with regional exposure. Juliana rates Dairy Farm and Food Empire as her preferred picks.

sachets FE packagingPackaging material for Food Empire's MacCoffee. NextInsight file photoShe has little preference for companies with a Singapore-only exposure as their longer-term growth outlook remains weak.

REITs: OVERWEIGHT with preference for hospitality and industrial. Ascendas REIT (AREIT) and OUE Hospitality Trust (OUEHT) are Top Picks.

Vijay’s preference is for REITs that would be direct beneficiaries of 
improvement in economic activity, and/or have a strong balance sheet and can undertake accretive acquisitions.

Price

Target price

Upside

Dividend yield

Total return

APAC Realty

0.87

1.20

39%

5%

43%

Ascendas REIT

2.67

2.90

9%

6%

15%

Avi-Tech

0.44

0.59

36%

5%

41%

Dairy Farm

7.90

9.53

21%

3%

24%

Food Empire

0.64

1.00

57%

1%

58%

HRnet

0.82

1.14

39%

3%

42%

Moya Holdings

0.08

0.17

102%

0%

102%

Manulife US REIT

0.91

0.98

8%

7%

15%

OUE Hospitality Trust

0.82

0.88

8%

6%

14%

Singapore Medical Group

0.57

0.79

40%

0%

40%

UOB

25.88

28.88

12%

3%

14%

Venture

20.26

24.10

19%

4%

23%

 

Banks: NEUTRAL with an OVERWEIGHT bias. UOB is Top Pick. Seng Choon thinks strong share price performance in 2017 could limit upside in 2018. However, he highlights that the positive impact of the interest rate upcycle on earnings cannot not be taken lightly. UOB’s large exposure to residential mortgage market and strong balance sheet makes a Top Pick.

Property: NEUTRAL with APAC Realty as Top Pick. Vijay expects property prices to rise by 3-7% in 2018. He assesses that recent en-bloc frenzy and intense competition in land sales could limit developer margins and also sees risk of government implementing more supply side measures.

Quality small & mid cap names. Jarick expects Avi-Tech Electronics (Avi-Tech), HRnetGroup, Moya Holdings Asia (Moya) and Singapore Medical Group (SMG) to deliver strong returns in 2018. 

Watch video to gain insights into Avi-Tech --> 


Share Prices

Counter NameLastChange
AEM Holdings3.700-0.100
Avi-Tech Electronics0.280-
Best World1.760-0.030
Broadway Ind0.120-
China Sunsine0.395-0.010
DISA0.003-
Food Empire0.640-
Fortress Minerals0.375-
Geo Energy Res0.3550.005
Golden Energy0.7950.005
GSS Energy0.048-0.001
InnoTek0.460-0.010
ISDN Holdings0.400-0.005
ISOTeam0.090-
IX Biopharma0.125-0.002
Jiutian Chemical0.080-
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.136-0.002
Meta Health0.025-
Nordic Group0.465-0.010
Oxley Holdings0.151-
REX International0.225-0.010
Riverstone0.6250.010
Sinostar PEC0.185-0.010
Southern Alliance Mining0.410-0.090
Straco Corp.0.395-
Sunpower Group0.2750.005
The Trendlines0.092-0.001
Totm Technologies0.102-
UG Healthcare0.190-0.004
Uni-Asia Group0.810-
Wilmar Intl4.050-0.040
Yangzijiang Shipbldg1.380-0.020

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