Excerpts from latest analyst reports....
Lim & Tan expects strong profit recovery by HI-P
Since the company started buying back shares on 21 May ’12 (around the 72-73 cents level) and continued doing so till 4 Jun ’12 (around the 67 cents level) , it has helped to stabilize the stock’s performance after having declined from its high reached at $1.04 level at the end of Mar ’12.
Besides the company’s share buy back program, we believe the market is starting to anticipate management’s guidance of a strong pick up in business momentum starting in 2Q ’12 as strength from Apple, Amazon, Nike, Seagate, Colgate and P&G help to offset the weakness from its largest customer Research In Motion.
After recently breaking below (momentarily) the critical mid-70 cents level (which had acted as support turned resistance levels in the past 3 years), we are relieved that it has once again gone above this level (on Tuesday).
We are maintaining our buy recommendation in anticipation of the strong bottom-line recovery in 2H 2012.
Recent story: HI-P INTERNATIONAL: Record S$180 m capex this year for strong business growth
DBS Vickers says of BIOSENSORS: "What a bargain!"
Analysts: Alfie Yeo & Andy Sim
• Share price correction is bargain hunting opportunity; Share price decline has factored in potential risks from China price tender and ASP drop in stents
• Management’s 20-30% revenue growth guidance is still very visible
• At just 12x PE, bargain for 38% upside TP S$1.57. Share price correction of 12% on various concerns unwarranted.
Since our post FY13 results report, BIG’s share price has fallen 12% from S$1.285.
We believe the correction due to concerns is overdone. BIG now trades cheaply at 12x PE, well below the average of 14.5x PE, and 0.5x PEG.
DMG & Partners highlights ROXY-PACIFIC's recent landbanking
Analyst: Goh Han Peng
Roxy Pacific recently announced the en-bloc acquisition of Westvale Condominium, along Pasir Panjang Road. The purchase price of $77.5m implies a land cost of S$882 psf ppr, reasonable in the context of the site’s proximity to the Haw Par Villa MRT station on the Circle Line.
In our view, the latest acquisition represents a timely replenishment of its landbank after a series of successful launches over the past 18 months left it with a dwindling landbank.
Recent launches such as Centropod@Changi and Millage saw good take-up rates in excess of 80% and beef up its progress billings to $779m, to be recognised over the next 3-4 years.
This should ensure good earnings visibility on the property development front for the next few years.
The hotel division, meanwhile, continues to do well with a 12% rise in revenue for 1Q12 on the back of higher occupancy rate and room rates.
Adjusted for the valuation surplus of its hotel, the group’s NAV/share is currently at $0.59. We estimate a RNAV of $0.75/share for the stock.
At current levels, the stock is trading at a 47% discount to RNAV and offers a decent yield of 3%.
Recent story:ROXY-PACIFIC: Scrubbing hard to raise $ for less fortunate children
