| MAYBANK KIM ENG | PHILLIP SECURITIES |
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Frencken Group Ltd (FRKN SP) Cyclical recovery continues
2H20 beat despite impairment; Maintain BUY Despite an impairment amounting SGD6.2m, 2H20 PATMI of SGD23.8m (+5% YoY) was ahead of our and street’s expectations. This was due to grants and lower than expected i) negative FX impact to P&L and ii) effective tax rate. Management expects 1H21 to grow HoH, reinforcing our view of the ongoing cyclical recovery. Our FY21-23E forecasts are largely unchanged, and we maintain BUY with ROE-g/COE-g TP of SGD1.39 (1.6x FY21E P/B).
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Raffles Medical Group Ltd Convalescing SINGAPORE | HEALTHCARE | FY20 RESULTS
FY20 earnings beat estimate by 61% with the variance coming from S$28mn of JSS income and new COVID-19-related services. Healthcare services grew 18% YoY as PCR and serology testing offset loss of foreign patients due to travel restrictions. China operations improved from FY19. RafflesHospitalChongqing narrowed losses. Completion of RafflesHospitalBeijing’s upgrading to accelerate growth in China. Upgrade from NEUTRAL to ACCUMULATE with higher TP of S$1.18 from S$0.94, as we roll forward our DCF (WACC 6.6%) valuation. China operations expected to turn around.
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PHILLIP SECURITIES |
CGS CIMB |
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Sheng Siong Group Ltd Demand still above trend SINGAPORE | CONSUMER | 4Q20 RESULTS
4Q20 revenue and earnings were within expectations, with full-year at 102%/101% of forecasts, excluding government grant. Final dividend jumped 67% to 3 cents per share. Revenue grew 28% YoY to S$319mn despite a gradual return of social and outdoor activities. Same-store sales growth in 4Q20 was 18%, 10-fold higher than 1.8% in 4Q19. FY21 earnings could be weaker following last year’s record sales triggered by pantryloading and dine-home demand. We have modelled a 13% drop in revenue per sq ft for FY21e. Still, revenue should be 10% higher than pre-COVID levels. Expect grocery demand to be supported by dining at home and more households present in the country with international borders largely shut. FY21e PATMI and target price of S$1.71 unchanged. Remains based on 25x PE, its 5-year historical average. Nevertheless, we raise the stock to ACCUMULATE from NEUTRAL as demand is still above trend.
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Propnex Ltd Ending the year on a high note
■ 4Q/FY20 EPS of 2.03/7.86 Scts beat our expectations, at 33.1%/128.5% of our FY20 forecast ■ PROP expects strong volume momentum in the private resale segment to continue in FY21F ■ Reiterate Add with a higher TP of S$0.888
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