CGS CIMB |
OCBC |
JB Foods From bean to bar
■ JB Foods is one of the top 10 cocoa-processing companies globally, based on its processing capacity (145,000mt p.a.) in Malaysia and Indonesia. ■ Its 1H18 net profit growth of above 300% yoy was the result of sales volume growth and current favourable market dynamics, according to the company. ■ The stock now trades at FY17 P/E of 7.3x, at a 63% discount to the global food and beverage (F&B) industry average of 19.8x.
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Hotel Properties Limited: A “new” GO candidate?
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UOB KAYHIAN | MAYBANK KIM ENG |
Oversea-Chinese Banking Corporation (OCBC SP) 3Q18 Results Preview: Growth From Developed Markets
We expect loan growth to moderate to 1.2% qoq and 9.9% yoy with expansion driven by developed markets Singapore and Hong Kong in 3Q18. NIM expansion has resumed in 2H18 due to higher interest rates for mortgages and trimming of surplus US$ fixed deposits. Unfortunately, 3Q18 was hampered by weakness in fees as high net worth clients adopted risk-off mode. We forecast net profit of S$1,099m for 3Q18, down 9.1% qoq but up 4.0% yoy. Maintain BUY. Target price: S$14.05.
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Hi-P International (HIP SP) Lowers Guidance Again
2 nd guidance cut this year; Slash TP 34% HIP lowered its earnings guidance for the second time this year. It now expects lower sales and profit in 3Q18 on a YoY basis in contrast to its earlier guidance of higher revenue and similar profit. We are concerned industry headwinds are hitting HIP much harder than expected. Consequently, we slash our EPS by 25-32% for FY18-20E. Our ROE-g/COEg TP is cut to SGD0.84, now based on 1.2x FY18E P/B (previous 1.8x), based on FY18-20E average ROE of 10.4% and COE of 9%. HOLD.
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DBS VICKERS |
RHB SECURITIES |
Yangzijiang Shipbuilding (YZJSGD SP) : BUY
Marching into LNG space with Mitsui • Established shipbuilding JV with Mitsui
• Paving way into large scale LNG carriers • JV can potentially lift 2019 contract wins by 20% • Reiterate BUY and TP S$1.82
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Banks
MAS Tightens, But NIM Will Still Widen This morning (12 Oct), MAS announced its decision to increase slightly the slope of the S$NEER policy band. With the MAS monetary tightening move, we believe the 3-month SIBOR will still rise, although somewhat more mildly. Our view remains that Singapore banks will continue to record NIM expansion, on the back of further FFR hikes. The 3Q18 sequential rise in 3- month SIBOR is also a positive for banks’ 3Q18 NIM. Maintain OVERWEIGHT on Singapore banks, with UOB as Top Pick – its potential to dish out more dividends should attract more investor interest.
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Check out our compilation of Target Prices