| UOB KAYHIAN | UOB KAYHIAN |
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Food Empire Holdings (FEH SP) 1H21: Below Expectations Due To Costs; Price Increase Should Improve Earnings
FEH’s 1H21 net profit of US$11.5m (-13.2% yoy) is below expectation, forming 37% of our full-year estimate. Margins came under pressure due to high commodity prices and record-high ocean freight rates. We believe earnings should improve via price increases and normalisation of costs. All markets recorded sales growth, with double-digit growth in its two largest markets, Russia and Southeast Asia. This continues to reflect FEH’s strong brand power. Maintain BUY and target price of S$1.30.
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OM Holdings (OMH MK) Stronger Earnings Ahead Leveraging On The Rally In Ferroalloy Prices
OMH is set to achieve more robust earnings ahead on the back of a production recovery and strong ferroalloy prices. We raised our earnings forecast for 2021-23 to reflect higher ferroalloy prices. Being the world’s lowest-quartiles-cost manganese smelter, OMH is expected to post a 3-year net profit CAGR of +150% from 2020, supported by favourable prices and strong global demand amid the structural supply shortage. Maintain BUY with a higher target price of RM3.46.
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DBS VICKERS |
DBS VICKERS |
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LendLease Global Commercial REIT JEM acquisition an impending catalyst
Investment Thesis Aimed for the bull’s eye – full control of JEM may happen within a year. We believe that a golden opportunity exists for LREIT to fully acquire JEM mixed development within the coming year. A dominant mall in the West, we see positives from a pivot into the suburban retail space while its SG exposure will increase to 85% (vs 75%) as LREIT emerges as the upcoming Singapore-focused retail play.
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SBS Transit Ltd
Investment Thesis: Refuelling for a run
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Check out our compilation of Target Prices
