| PHILLIP SECURITIES | MAYBANK KIM ENG |
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CNMC Goldmine Holdings Limited Still fundamentally sound SINGAPORE | MINING | RESULTS FY16 Revenue missed our full year expectation of US$42.2mn by 17.8% FY16 Operating income missed our full year expectations of US$20.9mn by 45.9% FY16 Net income missed our full year expectation of US$mn20.56 by 44.0% 0.2 SG cents final dividend and 0.534 cents special dividends proposed with respective Y-o-Y growth of 11% and 32% We revise down our FY17e and FY18e revenue to US$39.9mn and US$46.1mn from previous forecast of US$49.5mn and US$55.8mn respectively. We maintain our “Buy” rating with a reduced discounted FCFE-derived TP of S$0.68 (from S$1.01). Cost of equity used remains unchanged at 9.8%. Our TP implies a 68% return from the last close price of S$0.41.
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Riverstone Holdings (RSTON SP) Lacklustre outlook on oversupply; HOLD EPS cut 7-12%, TP by 7% on lower GM est. We cut EPS by 7-12% after lowering our gross margin assumption to reflect the more challenging and competitive environment. Maintain HOLD and reduce TP by 7% to SGD0.83, based on an unchanged 16x FY17E EPS (+1SD above mean for its product customisation edge). FY16 net profit fell 1% YoY, in-line with our est. with core earnings 100% of our FY16E. Despite the challenging environment due to rising competition and a spike in raw material prices, results were supported by: 1) robust demand for differentiated and highly profitable cleanroom gloves; 2) customisation of healthcare gloves; 3) expansion into new markets; and 4) the addition of 1b units of new capacity pa.
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| CIMB | |
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City Developments Strong boost from China residential ■ FY16 net profit fell 16% yoy to S$653m but was still ahead of our expectations. ■ One-off gains and higher residential contributions boosted performance. ■ FY17 earnings underpinned by China and UK developments. ■ Low gearing of 16%; capital deployment remains key catalyst. ■ Maintain Add with slightly higher TP of S$10.51.
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| OCBC | UOB |
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Memtech International: FY16 results beat expectations; 4Q revenue jumps 25% YoY Memtech’s bottom line beat our expectations on a solid set of results, with a jump in contributions from its Consumer Electronics segment. Memtech's FY16 revenue increased 11.8% to US$159.0m, or 99.4% of our forecast, while PATMI dropped 22.8% to S$6.3m, or 116.6% of our forecast. Underlying these results is a strong recovery from the loss made in 2Q16. 4Q16 revenue increased 25.5% YoY to US$47.9m, which was followed by an increase in gross profit margin level from 19.0% in 4Q15 to 19.2%. 4Q16 PATMI increased 5.9% to US$4.0m; after stripping out the write back of allowance for doubtful receivables of US$1.5m recorded in 4Q15, the YoY increase in 4Q16 PATMI comes up to around +72%. We are likely to keep our BUY rating, but place our fair value of S$0.76 under review pending further details from the briefing. |
Sembcorp Industries (SCI SP) 4Q16: Passing Through A Resistive Node SCI reported core net profit above our expectations. Utilities’ earnings remained robust, helped by one-offs from China and the UK. India’s loss was largely due to start-up losses from its second power plant SGPL, and was a disappointment. Marine earnings swung back into the black for the quarter. The losses at SGPL are troubling, and point to a 2018 earnings story. With 2017 a transition year, a long-term view is required. Maintain BUY with a higher target price of S$3.95.
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