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RHB |
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ISOTeam (ISO SP) A Better 2HFY20 Ahead; Stay BUY
Keep BUY and DCF-based SGD0.31 TP, 41% upside with c.2% FY20F (Jun) yield. ISOTeam’s 2QFY20 revenue fell by 22.6% YoY to SGD35.5m on lower contributions from the addition and alteration (A&A) business. This segment recorded a plunge in turnover of 53.4% YoY to SGD14.2m, due to the absence of revenue from the Marina Bay Sands (MBS) projects, offset by double-digit revenue growth across its repairs and redecoration (R&R) and Others business segments.
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Valuetronics (VALUE SP) Impact Of COVID-19; D/G To NEUTRAL
Downgrade to NEUTRAL from Buy with new TP of SGD0.76 from SGD0.82, 4% upside. Valuetronics announced it will submit an application to resume production of its factories in Huizhou, Guangdong province. It has also issued a notice to customers on potential delays to the original scheduled shipments. As a result, we think that there will likely be negative impact to earnings in 4QFY20F, and we lower our FY20F EPS by 8% to account for this.
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| CGS CIMB | CGS CIMB |
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Overseas Education Ltd Hard work pays off
■ OEL’s FY19 core net profit of S$8.0m was a slight beat; it rose 15.9% yoy, despite marginally lower revenue of S$82.0m. ■ FY19 DPS of 2.75Scts (unchanged yoy) was in line; we expect OEL to maintain this over FY20-22F, translating into 7.5% dividend yield. ■ Reiterate Add on earnings growth, attractive yield and historical low valuation of 16.8x FY21F P/E (1 s.d. below 4-year historical mean).
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Property Devt & Invt Higher sales in Jan
■ Private homes sales were higher mom and yoy in Jan 2020. ■ Transaction volumes may be lumpy in 2020F with near term volume remaining thin, amid a range-bound price trend due to ample launch supply. ■ Reiterate sector Overweight. Our top sector picks are UOL, CIT and CAPL.
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