| PHILLIP SECURITIES | CIMB SECURITIES |
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Golden Energy and Resources Ltd Great quarter to end a stunning year
Revenue beat our forecast by 23.5% due to higher than expected sales volume and average selling price (ASP). On the flip side, net profit missed by 6% due to higher cash cost and income tax expenses. 15.6mn tonnes of production volume in FY17 (+64.2% YoY). FY17 ASP grew a healthy 25.7% YoY. 4Q17 cash cost was higher than expected (+139.5% YoY). We lower FY18e to EPS 3.5 US cents (previous 4.3 US cents) due to the expectation of higher cash costs and interest burden. Based on unchanged average 12-month forward PER of 10x (the average of regional peers) and the FX rate (USD/SGD) of 1.36x, we lower our target price to S$0.48 for FY18 (previous S$0.59) and reiterate our BUY recommendation.
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Yongnam Holdings Hopeful for contracts
■ Yongnam/Leighton Contractors JV has been shortlisted as the potential contractor for the North-South Corridor (tunnel) package N103, with the lowest bid of S$553.8m. ■ In addition to a 30% stake in the main contractor job, Yongnam could be entitled to c.S$50m of strutting work, based on our estimates. ■ We expect the contract to be finalised in next 1-2 months and significant revenue recognition to start in 1Q19F.
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| UOB KAYHIAN | RHB |
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Singapore Post (SPOST SP) Limited Price Downside; Geared To Rising E-commerce Volume
We see limited downside to SPOST’s share price due to share buybacks and improving prospects. Free cash flow yield should improve from FY19 and the group will benefit from rising e-commerce cross-border volume as well as improvements across key business segments. Maintain BUY and target price of S$1.60.
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Moya Holdings Asia Expansion Of Tangerang Water Supply Capacity
Moya announced that it has secured into an expansion amendment to the BOT cooperation agreement with PDAM Tangerang, to expand the water supply capacity to 2,000lps from the existing 950lps. The total pipe network to be installed would also increase to 1,200km, from 631km. Construction, costing SGD110m, is estimated to be completed by 2024, and water sales contributions are expected to rise gradually by 200lps pa. We think the outlook is bright for Moya, and maintain our BUY call with an unchanged TP of SGD0.15 (53% upside).
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Check out our compilation of Target Prices
