 Shared by:Lionel Lim, remisier Phillip Securities Website:http://lionelltp. Please contact me at 65 90400848 or email me at |
Singapore Morning Note 22 August 2016 by Phillip Capital
RESEARCH COVERAGE
Fraser and Neave – Lacking the pop factor
Recommendation: Reduce (Maintain), Last Done Price: S$2.12
Target Price: S$1.93, Analyst: Soh Lin Sin
- In a phase to fill in the gap due to loss of sales from its Beer business and Red Bull
- Lack of near term catalyst: new markets are still in nascent stage and no concrete acquisition plan yet
- Actions taken to improve sales and margins, but will not return to FY2014-level
Chip Eng Seng Corporation - Gradual Pick-up in Development Sales
Recommendation: Accumulate (Maintain), Last Closed Price: S$0.63
Target Price: S$0.72, Analyst: Peter Ng
- Most property development projects in Singapore and Australia as at 2Q16 are either fully sold or close to being fully sold
- Fulcrum development project is 38.2% sold as at 1H16; sales not expected to pick up in our view but no pressure to clear for now; development margins still intact
- Launch of two new property development projects by July 2017 is expected to add S$1.2 billion in GDV as existing inventory begins to thin
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22 August 2016 RESEARCH REPORT |
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CapitaLand Retail China Trust – Chengdu beckons: First acquisition since 2013 Recommendation: Accumulate (Maintained), Last Done Price: S$1.60 Target Price: S$1.62, Analyst: Dehong Tan
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UOB KayHian
WHAT’S IN THE PACK
Telecommunications – Singapore We understand that MyRepublic has completed its fund raising exercise. Unfortunately, OMGtel could be affected by the censure from IDA. We believe MyRepublic and OMGtel would purchase the bulk of their network equipment from Huawei and ZTE, thus benefitting from the bank financing covered by buyer’s credit insurance provided by Sinosure. Maintain UNDERWEIGHT.
Genting Singapore (GENS SP) - Less Pumped Up By Upside (GENS SP/BUY/S$0.76/Target: S$0.84) While GENS’ share price should still recover in 2H16 as provisions shrink and EBITDA rises, the stock’s upside is limited by a soft mass market GGR trend. Based on the recent yoy mass market GGR drop at both casinos in 2Q16 despite the rising number of tourist arrival to Singapore, we now assume that the contraction could be linked to the spillover effect of the O&G industry’s contraction. This suggests slow recovery prospects. Maintain BUY but with a lower TP of S$0.84.
https://research.uobkayhian.com/content_download.jsp?id=35658&h=8ba15caa35c7c7b77c15297ac0d39330
Wired Daily 22 August 2016 (not for distribution in US)
Please click here for report: Wired Daily: 22 August 2016
| Summary |
- Singapore Industrial Real Estate - En route to change
- Singapore Telecom Sector -Risk is not off yet
- No positive drivers from National Day Rally Speech to reverse STI’s weak trend, keep view for 2714 over 1-2 months
- Changes to Model Portfolio – Remove M1 from Conservative & Dividend Portfolio
- First Sponsor sells 70% stake in Dongguan project
- Sembcorp Marine to acquire LMG Marin AS
- KS Energy secures letter of award valued at US$17.4m
- Singapore's Q2 domestic wholesale trade drops 20.5%
| Top Ideas of the day |
Singapore Industrial Real Estate
En route to change
- Demand for industrial properties to change alongside the restructuring of manufacturing sector
- Business parks and hi-tech space to do well among industrial types
- Industrial REITs to undertake more developments and diversify overseas. Our picks are A-REIT and MINT
Read more…
Singapore Telecom Sector
Risk is not off yet
- StarHub launched an aggressive mobile-fixed broadband plan on 18 Aug
- This may be a signal that the risk of a new entrant is not off despite a weak business case for the new entrant
- After recent rally in StarHub and M1, consolidation in their share prices can’t be ruled out
- Downgrade StarHub and M1 to HOLD
