| CGS CIMB |
UOB KAYHIAN |
|
Offshore & Marine 2Q18 preview: stronger qoq for YZJ, hope for dividend for KEP
■ YZJ could be the only one in the sector to deliver stronger qoq earnings. KEP, SMM and SCI are likely to post weaker qoq earnings. ■ KEP could dish out a special 50th anniversary dividend on stronger balance sheet while SCI should see better utilities earnings with higher load factors in India. ■ YZJ should also see stronger qoq shipbuilding margin with the delivery of some 30 vessels in 2Q18 vs. 9 in 1Q18. There could be a positive impact from a weak Rmb. ■ SMM could see a net loss of c S$20m with little improvement in operating leverage. ■ Maintain sector Overweight as aggregate valuations are at c 1x CY18FP/BV or -1s.d of its 10-year mean vs. improving ROE of c. 7% . Orders are still the key catalysts.
|
Asian Healthcare Specialists (AHSP SP) Ageing Population Giving Orthopaedic Player A Leg-Up
|
| OCBC SECURITIES | DBS VICKERS |
|
Golden Agri-Resources: Dim near term outlook
1Q18 was a challenging period for the palm oil industry, and market watchers are concerned about a production surplus in 2H18, due to seasonality and low production in 1Q18. Crude palm oil (CPO) prices have continued to trend lower in 2Q18, and are down about 6% so far this quarter. On the currency front, we note that so far this year, the IDR has also depreciated by about 5.9% against the USD with most of the loss happening in 2Q18. Based on GAR’s annual report, if the IDR weakens against the USD by 5% with all other variables remaining constant, the group’s pre-tax profit would have decreased by US$34.7m in 2017 and US$30.9m in 2016, likely impacted by translation losses as the group reports its financials in USD. Looking ahead, OCBC Treasury Research & Strategy (GT) continues to stay bearish over palm oil prices into 2H18. With weaker CPO prices and a dimmer outlook on earnings, we lower our valuation to 17x FY19F earnings and our fair value estimate drops from S$0.34 to S$0.30.
|
Singapore office Where is the cap rate expansion?
Manulife Centre potentially sold, at mid-2% yield based on net property income Potential transaction is a continuation of sale of fringe CBD office properties at “tight” yields Office REITs with better located properties are trading at a discount to these physical market transactions Maintain Overweight on office REITs – CapitaLand Commercial Trust (CCT; BUY, TP S$2.12) is our top pick
|
|
|
|
|
|
|
Check out our compilation of Target Prices
