buy sell hold 2021



AEM Holdings Ltd
Adding capacity for growth

AEM announced its expansion plans today (16 Jun 2022) that will more than
double its current manufacturing space in Malaysia, US and Singapore.

We also note the successful conclusion of new product developments such
a CMOS testing solution with UTAC and AEMs own Trident platform.

We reiterate our Add call with a TP of S$6.85.


KPJ Healthcare (KPJ MK)
Tailwinds intact despite taking more time; U/G to BUY

Upgrade to Buy following share price decline

We tactically upgrade KPJ to BUY with an unchanged SOP-derived TP of
MYR1.01, following its underperformance against the broader market.

The abating COVID-19 situation, coupled with various management
initiatives to drive margin expansion i.e. streamlining cost management,
adoption of technology, as well as disposal of underperforming assets,
could be the catalysts for the stock to re-rate, in our view.

The stock is currently trading below its PBV and EV/EBITDA 5-year means.




Marco Polo Marine - Beneficiary of higher activity in the offshore sector.
(MPM SP/BUY/S$0.028/Target:S$0.043)

The rationalised oil & gas offshore support industry has shown resilience over the COVID-19 pandemic. Channel checks suggest vessel utilisation has been improving, helped by minimal newbuilds and increased offshore activity in the region.

MPM will benefit from positive operating leverage from higher charter and utilisation rates and a lean operating structure.

Maintain BUY with a higher target price of S$0.043 (from S$0.038), after rolling forward the valuation base year to FY23.

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