PHILLIP SECURITIES | CIMB |
Hock Lian Seng Holdings Earnings bottoming in sight
Hock Lian Seng Holdings’ (HLSH) 9M16 Revenue/Profit After Taxes and Minority Interests (PATMI) met 77%/86% of our forecast Gross profit was boosted by a one-off gain from the closure of a few completed construction projects which amounted to c.S$5 million We have adjusted our forecast and valuations to take into account of a S$60 million cash inflow from the repayment of loan from the Group’s Joint Venture (JV) company, as well as higher gross margins attained from existing Civil Engineering projects Existing Civil Engineering projects will continue to provide revenue visibility into 2020; Group is unable to sustain dividend payments from the Civil Engineering segment alone |
Valuetronics Holdings Ltd 2QFY17: Riding on the Internet of Things ■ 1HFY17 core net profit was in line at 49%/ 53% of our/consensus FY3/17 forecasts. ■ Product portfolio expanded to include products with connectivity technologies and more electronic components (eg. wireless LED lighting, bathroom goods). ■ Zero debt, net cash/share of S$0.34 at end-Sep 2016 (including AFS). We forecast 7.2% dividend yield for FY17-19F. ■ FY17-19F EPS cut by 1-11% as we adjust for: 1) lower ICE sales growth in FY18- 19F, 2) lower gross margin, and 3) higher labour costs in FY18F. ■ Maintain Add with unchanged TP of S$0.60 (still 8.4x P/E) as we roll over to CY18. |
OCBC SECURITIES | |
Yoma Strategic Holdings: Buoyed by FV gains from telco towers stake
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UOB KAYHIAN | MAYBANK KIM ENG |
Valuetronics Holdings (VALUE SP) 2QFY17: In Line; Returns To Revenue Growth After six consecutive quarters of comparable-sales contraction, Valuetronics’ 2QFY17 net profit rose 18.2% yoy to HK$38.1m, driven by higher sales in the consumer electronics segment. Valuetronics is trading at 8.6x FY18F PE (ex-cash: 3.5x) with an attractive potential dividend yield of 6.7%. Maintain BUY and PE-based target price of S$0.60. |
Singapore Banks Post-3Q16: Focus On Revenue Driving topline growth Singapore banks are now driving topline growth to offset more provisions that need to be set aside in the face of worsening asset quality. Post- 3Q16, aside from asset quality deterioration, we saw: 1) banks gaining market share in domestic loans/finding new sources of loan growth; 2) falling customer spreads; and 3) higher non-interest income (non-II) and better cost management can cushion overall impact to earnings. We want to assess the drivers of topline growth for 3Q16. |
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