ANALYSTS SAY: Buy, Sell, Hold (14 Nov '19)

MAYBANK KIM ENG

Oxley Holdings (OHL SP)

Stronger Quarters Ahead; Maintain BUY

 Maintain BUY and SGD0.43 TP, 23% upside plus c.9% yield. Oxley reported a positive 1QFY20 (Jun), with revenue rising 66% to SGD282.8m and PATMI surging to SGD12.2m from a loss of SGD0.66m a year ago – mainly due to projects in the UK, Singapore and Malaysia. The retail bond of SGD300m has been fully redeemed and cancelled. We expect much stronger quarters ahead due to recognition of the remainder of the Chevron house sale and the Dublin and Singapore projects.

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ComfortDelGro (CD SP)

Slightly off track

Reduced margin assumptions. Maintain BUY We reduce our 2019E-21E profit forecasts by 2-3% to reflect higher rail fees in 3Q19 that reduced public transport margins. Our DCF-based (WACC 9.0%, LTG 1%) TP is consequently reduced by 2% to SGD2.70. An approved 2020 fare hike and improved overseas diversification remain key catalysts behind our BUY. Worse-than-expected taxi business erosion and/or fare hike reversals is the downside risk to our outlook.

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RHB

Centurion Corp (CENT SP)

9M19 Results In Line; Stay NEUTRAL

 Maintain NEUTRAL, DCF-based TP of SGD0.43, 2% upside with 5% FY20F yield. Centurion’s 3Q19 revenue grew 17% YoY to SGD33.1m, mainly on newly-added properties – dwell East End Adelaide in Australia and Westlite Juniper in Singapore. It was further boosted by higher occupancy rates from Singapore PBWA and an additional 160 beds for RMIT Village. Gross profit and earnings grew 17% and 19% YoY to SGD23.2m and SGD10.2m.

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Valuetronics (VALUE SP)

Earnings resilience; Vietnam taking shape

2QFY20 beat; maintain BUY Amid the US-China trade war and loss of smart-lighting allocation, 2QFY20 core PATMI was ahead of our and consensus estimates, falling only 3% YoY, while revenue stayed flat. 1HFY20 accounted for 58-59% our/ consensus FY20E PATMI forecasts. Diversification efforts in Vietnam are progressing well. VALUE also raised interim DPS. We raise FY20-22E EPS by 2-6% to reflect this set of results. ROE-g/COE-g TP is raised to SGD0.98, based on 2x FY20E P/B (prev: 1.9x). Further loss of allocation would be a key risk, and growth resumption would be a rerating catalyst. Maintain BUY.

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