| PHILLIP SECURITIES | OCBC |
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Sinarmas Land Limited Demand expected to improve SINGAPORE | REAL ESTATE | RESULTS Development sales in FY16 met 91% of the Group’s full year target of IDR6.9 trillion; Targets a 14% growth in development sales in FY17 Met expectations of FY16 target with 50 hectares of land sales; Targets a 13% increase in land sales in FY17 driven by commercial and residential land sales We have revised our estimates amid optimism in the Indonesia economy amid an improving economic climate and the various economic stimulus packages that have yet to show impact
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Kim Heng Offshore & Marine: Conserving cash Heng Offshore & Marine recently reported a 45% YoY fall in revenue to S$7.5m and a net loss of S$13.0m in 4Q16, vs. net loss of S$1.5m in 4Q15, as earnings were dragged by asset impairments of S$8.3m. Excluding this and other one-offs, we estimate full year core net loss to be S$8.5m, vs. -S$2.8m in FY15. There is a slight pick up in enquiries for the vessel chartering segment, as well as for maintenance services, but a more significant recovery in business activity may only be towards the later part of this year.Meanwhile the focus is on conserving cash and capex will drop significantly this year. Maintain HOLD with fair value estimate of S$0.089, based on 0.8x FY17F book. A 0.07 S cent dividend has been declared, compared to 0.3 S cent in FY15. |
| UOB KAYHIAN | |
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Plantation – Singapore Expect FFB Production To Recover In 2017 4Q16 results were mixed. BAL’s and FR’s results were above expectations on the back of higher sales volume and prices, while WIL’s results were in line. However, GGR’s came in lower than expected. All companies have guided for double-digit FFB production growth in 2017, while CPO prices are likely to weaken when production recovers and inventory starts to pile up in 2H17. Expect weaker earnings in 1Q17 as it will be a seasonally weak production quarter. Maintain OVERWEIGHT.
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| DBS VICKERS | RHB |
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Fu Yu Corp Cash in on potential upside • Challenging industry outlook but company-led initiatives could aid margin expansion and deliver growth • Sustainable dividend of 1.5 Scts offers yield of 7.2% • Currently trading at just 3.3x FY17F ex-cash P/E, Fu Yu appears attractive as a potential privatisation or takeover target
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China Aviation Oil Singapore It Is Time To Re-Fuel Again We increase our 2017F-2018F profit by 6-7% to account for higher volume growth, improved margins for its oil trading unit and higher contributions from SPIA. Maintain BUY, with a SGD1.83 TP (from SGD1.61, 22% upside) as CAO remains on track to deliver steady earnings growth and higher dividend yields. About 20% of its market cap is supported by a net cash position of USD187m, which we believe could potentially be used for an acquisition in 2017. We maintain that an earnings-accretive investment in 2017 should lead to a further re-rating of the stock.
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