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UOB KAYHIAN

DBS VICKERS

STRATEGY – SINGAPORE

Alpha Picks: Positive Start To The Year

Most of our alpha picks recorded gains in January. We see further upside to the target prices for our stocks.

 

WHAT’S NEW

 A good month. Most of our picks notched up gains in January, except OCBC. Our portfolio gained 5.7% mom, vs the FSSTI’s +4.0% for the month. The most notable outperformer within our picks was CSE Global which gained 13.2% mom as it secured infrastructure projects worth S$84.8m in 4Q18, bumping up its full-year order wins to S$150.5m (+43.6% yoy). Small-cap manufacturing companies in our portfolio also delivered strong gains (Fu Yu: +7.9%, Valuetronics: +6.8%).

 

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Ezion Holdings

Not out of the woods yet

 

Downgrade to HOLD; TP reduced to S$0.06, after pegging a lower target multiple of 0.3x on FY19F book value (vs 0.8x previously), given potential asset impairments and slower-thanexpected ramp up in utilisation and revenue. While it is darkest before dawn and the stock’s valuation has been greatly discounted for the slow recovery, clearer signs of a turnaround are required to re-rate the stock. Downgrade to HOLD.

 

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LionelLim8.16Check out our compilation of Target Prices



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Counter NameLastChange
AEM Holdings1.840-0.020
Best World2.480-
Boustead Singapore0.950-0.005
Broadway Ind0.1450.005
China Aviation Oil (S)0.865-0.005
China Sunsine0.390-0.005
ComfortDelGro1.390-0.010
Delfi Limited0.875-
Food Empire1.120-0.010
Fortress Minerals0.310-
Geo Energy Res0.3000.005
Hong Leong Finance2.420-0.010
Hongkong Land (USD)3.4200.010
InnoTek0.505-
ISDN Holdings0.300-0.005
ISOTeam0.047-
IX Biopharma0.039-0.004
KSH Holdings0.245-
Leader Env0.049-
Ley Choon0.055-0.001
Marco Polo Marine0.068-0.003
Mermaid Maritime0.1350.002
Nordic Group0.305-
Oxley Holdings0.0900.001
REX International0.124-
Riverstone0.9300.005
Southern Alliance Mining0.480-
Straco Corp.0.490-
Sunpower Group0.230-
The Trendlines0.063-
Totm Technologies0.019-0.002
Uni-Asia Group0.810-0.035
Wilmar Intl3.160-
Yangzijiang Shipbldg1.750-0.020
 

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