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RHB |
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■ It recently received its third Peugeot dealership and has more in the pipeline. ■ The company expects to incur one-off costs in FY3/19F for listing fees and higher borrowings.
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FY19: Growing Shanghai Revenue, Says Mgt
Maintain BUY with unchanged SGD0.88 TP pegged to a 35% discount to RNAV, offering 91% upside plus 2% yield. We remain bullish after speaking to management. For 2019, Amara’s Shanghai mall and office revenue contributions will commence. In addition, the stabilisation of Amara’s Shanghai hotel operations (since opening in 1Q18) will also add to earnings. We believe Amara’s Singapore hotels operations should remain steady from healthy visitor arrivals.
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| RHB | UOB KAYHIAN |
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Centurion Corp (CENT SP) Absence Of Tuas Revenue Cuts Core Net Profit
Maintain NEUTRAL and DCF-backed TP of SGD0.41, 4% downside. FY18 revenue was SGD120.1m (-12% YoY), due to the lease expiry of Tuas. The drop was partially cushioned by better performance of Malaysia’s workers accommodation (PBWA), ASPRI-Westlite Papan PBWA, and the UK student accommodation (PBSA). As a result, core NPAT decreased by 20% for the year to SGD 39.6m.
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Alpha Picks: Adding Memtech And CCT
Our portfolio’s monthly average return of 2.1% outperformed the FSSTI’s 0.7% in February. We re-positioned our portfolio by removing the telco picks and adding CCT. Among the small caps, we added small-cap gem Memtech for its prospective strong 2019 earnings growth of 31%, potential to benefit from a better macro environment in China and attractive valuation of 8.9x 2019F PE. But, we removed Valuetronics.
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Check out our compilation of Target Prices
