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MAYBANK KIM ENG |
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Thai Beverage 3QFY9/19: In good company
■ Higher associates brought 3Q19 net profit (THB6.7bn) ahead of our forecast of THB5.8bn. 9M19 net profit was 83.1%/81.5% of our/consensus FY19F. ■ YTD, domestic alcohol volumes are on an uptrend. Myanmar spirits disappointed. SABECO could surpass its CY19 projections, in our view. ■ Domestic business has stabilised. SABECO gains are medium-term growth drivers. Maintain Add with a higher SOP-based TP of S$1.00 (prev. S$0.96).
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Valuetronics (VALUE SP) Expanding abroad
Resilient 1Q19; expanding to Vietnam 1Q19 PATMI fell 3% YoY due to soft demand across VALUE’s customers but was in-line with our est. and slightly ahead of consensus. We trim FY20- 21E EPS by 4-7% out of caution to factor in reduced visibility from VALUE’s customers. VALUE plans to invest further in Vietnam to offer refuge for Chinese customers impacted by US tariffs, which should support long-term earnings growth and the 6-7% dividend yield provides share price support. Maintain BUY with lower ROE-g/COE-g TP of SGD0.94 (1.9x FY20E P/B from 2x previously). Loss of customers/ allocation is a key risk.
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RHB |
UOB KAYHIAN |
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Golden Agri-Resources (GGR SP)
Reiterate SELL with SOP-based TP of SGD0.22, 25% downside. Golden Agri’s core earnings remained in the red in 2Q19, coming from weaker FFB output, lower prices and higher costs. We now expect FY19 to remain in the red, with earnings only returning to the black in FY20. Valuations too, remain expensive at the current juncture.
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Sunpower Group Ltd (SPWG SP) 2Q19: Results In Line, Robust Growth From The GI Segment
Sunpower’s 2Q19 core net profit posted robust growth (+84.8% yoy) at Rmb50.5m. The 84.8% yoy growth in core net profit was driven by the strong performance from the GI segment. Underlying core net profit rose 53% yoy in 1H19 to Rmb111m, forming 37% of our full-year forecast. The ramp-up of existing GI projects and a strong M&S orderbook should continue to drive revenue growth in 2H19. Maintain BUY and SOTP target price of S$0.83.
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Check out our compilation of Target Prices
