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PHILLIP SECURITIES |
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Sembcorp Industries
Legal proceedings in water utilities ■ SCI's overseas majority-owned JV in the wastewater treatment business was served with a notice for an alleged discharge of off-specification wastewater. ■ Provision of S$25.4m was already made in FY17 results. The maximum potential claims and fines could amount to S$100m, inclusive of provisions previously made. ■ If full additional provisions of S$75m are made, SCI’s earnings will be reduced by 24% in FY18F or 17% in 2019F.
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Nico Steel Holdings Limited The electronics metallurgist SINGAPORE | INDUSTRIAL | COMPANY UPDATE
Announced positive profit guidance. A significant increase in earnings expected for 1H19 results. Removed overhang in convertible bonds priced at S$0.001, as conversions have ended. Transitioned away from low margin commodity metal distribution to customized alloys with patented electroplating and mechanical technology.
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| PHILLIP SECURITIES | UOB KAYHIAN |
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Singapore Banking Monthly With great interest rates comes great pricing power
SINGAPORE | BANKING & FINANCE | UPDATE Singapore’s domestic loans rose 5.6% YoY in August. Loans growth in Hong Kong slowed to 8.4% in August, the slowest in almost two years. 3-month SIBOR rose to a new high in September as expected. Maintain BUY for the Singapore Banking Sector.
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Venture Corporation (VMS SP) PMI Investor Day Slides Offer Glimmer Of A Better 2019
Takeaways from Philip Morris Investor Day showed that IQOS device sales are picking up. Conversely, SoM growth in key markets Japan and Korea are flat or declining. The next-generation IQOS 3 sees two models being released and we are concerned about cannibalisation. Production in 2019 could be higher than currently projected, but the split remains difficult to gauge. No change to our earnings forecasts for now. Maintain HOLD and target price of S$18.20. Entry price: S$16.00.
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DBS VICKERS |
DBS VICKERS |
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NetLink NBN Trust (NETLINK SP) : BUY
Europe NDR takeaways: Safe yield with some growth • Management optimistic about growth prospects over the next 3-5 years from rising adoption of fibre broadband • Low gearing to support any potential rise in fibre-related capex as Singapore aims to be a Smart Nation • We like Netlink for ~6% yield and mid-single-digit EBITDA growth prospects • Maintain BUY with TP of S$0.87
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CapitaLand Commercial Trust (CCT SP) : BUY
Committed occupancy at Asia Square Tower 2 hits 97% • The Work Project, a co-working operator, is taking up c.72,000 sqft of space at Asia Square Tower 2 and Capital Tower • Committed occupancy at Asia Square Tower 2 now at 97% which is above expectations • Maintain BUY, TP of S$2.12
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Check out our compilation of Target Prices
