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UOB KAYHIAN |
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Health Management International Insured against market volatility
■ We expect HMI to report a 4QFY6/18F core PATMI of RM12.5m (+20% yoy), which is a seasonally-weaker quarter due to the Ramadan effect. ■ The recent majority stake acquisition in StarMed marks its return to Singapore’s private healthcare, enabling it to leverage on rising popularity of day procedures. ■ The removal of the 6% GST in Malaysia could lift some pressure off margins, while HMI’s affordable pricing could fend off competition from more public hospitals . ■ At 22x forward P/E (45% discount to regional peers), HMI offers greater value with 42.9% 3-year EPS CAGR vs. regional peers’ 12.2% average. ■ Maintain Add. HMI remains our top small-cap pick in the healthcare sector.
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Success Starts With A Single Step
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| OCBC SECURITIES | PHILLIP SECURITIES |
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KSH Holdings: Don’t worry, be happy
Following the ABSD announcement after market on 5 Jul, KSH Holdings’ (KSHH) stock price fell 4.7% from S$0.645 to close at S$0.615 on 13 Jul. KSHH is currently trading -20.1% YTD, versus the -8.6% in the FSTREH and –2.5% for the STI, and is currently 33.9% below its peak price of S$0.93 as at 31 Oct 2017’s close. While we do see the latest round of cooling measures as effective curbs to new en-bloc sales in the near-term, we are still optimistic about the ~S$18.6b of already successful en-bloc transactions in 2017/YTD 2018 that will contribute to the pipeline of private sector projects to be completed the next two to three years. Even disregarding this pipeline of future projects, the group’s construction order book currently stands at ~S$542m (including the Rio Casa LOI), one of the highest it has been as at the end of a quarter since 1Q14. After lowering our margin assumptions for KSHH’s property development segment, our fair value drops from S$0.98 to S$0.94. We reiterate BUY on KSHH.
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Banyan Tree Holdings Limited Takeaways from our recent marketing event We hosted management of Banyan Tree Holdings (BTH) at a recent marketing event. Key issues discussed include updates on the partnerships with Accor and Vanke, future growth pillars and outlook for the Group’s key markets. Below are some highlights.
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RHB SECURITIES |
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Banks Overweight On Wider NIM Offsetting Trade War Effects
Upgrading sector call to OVERWEIGHT from Neutral. Whilst the US-China trade war and the Singapore Government’s property cooling measures could slow loan growth, rising FFR and a firmer SIBOR will widen banks’ NIM. Between 2003-2007 when the FFR surged, DBS’ and UOB’s P/BV escalated – this could potentially be repeated this time round, with market expecting two more rate hikes in 2H18, and more in 2019. UOB is our preferred pick, given its lower exposure to China and potential for higher dividends. DBS is also a BUY.
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Check out our compilation of Target Prices
