Excerpts from analyst reports
The Phillip Absolute 10 model portfolio was up 7.1% in 1Q19. We outperformed the STI by 2.4% points (Figure 11). Our yield and re-rating plays performed well.  China Sunsine produces chemicals that speed up the vulcanisation or curing process of rubber in the production of tyres. NextInsight file photo. With interest rate expectations nosediving, REITs rallied as investors searched for yield.Sentiment over commercial property was also fuelled by several transactions that were above market valuations.
Meanwhile, Sheng Siong will provide the earnings growth for the portfolio via its record store expansion. Consumer spending should also improve in view of the rise in wages and recovery in total employment in Singapore. Full report here. |
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Uni-Asia Group: Placement successful; firm dividend policy until FY20
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Uni-Asia Group |
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Share price: |
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Valuation & Action: Given the better business outlook across its three segments in FY19 and firm guidance on dividends until FY20, we reiterate our BUY recommendation and fair value of S$1.86, based on the sum-of-the-parts (SOTP) valuation of its three businesses.
Our TP is an implied 0.6x 2019F BVPS and 9.5x 2019F EPS.
UAG is positioned to ride the growth in its three business segments:
1) dry bulk shipping recovery in 2019,
2) HK property business earnings visibility until 2022, and
3) an increase in hotel rooms under management ahead of two of the world’s largest sporting events to be held in Japan.
Risks: UAG’s shipping business (30% of Uni-Asia’s FY18 revenues) is cyclical in nature, which may result in impairments to its shipping assets.
Full report here.
