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RHB |
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Wilmar International (WIL SP) Good Story To Continue Into 2020
We upgrade Wilmar’s target price to S$4.75 after rolling over our valuation to 2020 EPS. 9M19 earnings beat consensus estimates and led to a consensus earnings upgrade. The earnings momentum will continue into 2020 with 12% yoy net core profit growth. Tropical oils may see weaker margins as feedstock prices increase, but this would be offset by a better performance from the oilseeds & grains segment. Maintain BUY. Target price: S$4.75 (previous: S$4.40).
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Sheng Siong (SSG SP) More Stores To Come; Maintain BUY
Reiterate BUY, new TP of SGD1.39 from SGD1.32, 13% upside and c.3% FY20F dividend yield. Sheng Siong remains one of our Top Picks for 2020. We believe its growth story remains intact. New store openings and market share gain should continue to drive earnings next year. Currently, the group has more or less secured two new stores. Housing Development Board also still has at least six new commercial units for tenders set aside for supermarkets in FY20.
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DBS VICKERS |
DBS VICKERS |
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AEM Holdings Ltd ”Testing” new highs
• Initiating coverage with a BUY and TP of S$2.38, representing a potential upside of 39% • Key customer is increasing capex and production capacity • New technology structurally increases test times, leading to higher demand for test handlers • Diversification of revenue stream through new projects and customers
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Regional Plantation Companies Better days ahead for palm oil
• Plateauing output to support average CPO prices of US$596 per MT in 2020 • Demand to remain steady, although export levies could be reintroduced in early 2020 • Indonesia’s biodiesel programme a major wild card • A mixed bag: FR, BAL, WIL, FGV, TSH our top BUY
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Check out our compilation of Target Prices
