| RHB | CIMB |
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Yoma Strategic Refuelling For The Next Leg Yoma offers investors the best proxy to invest in Myanmar with a strong and diversified business model. Recent quarterly results have been a mixed bag reflecting a sluggish real estate market caused by uncertainty over new regulations governing foreign buying. However, we see these as hiccups in a long structural uptrend driven by urbanisation, foreign direct investments and financial sector liberalisation. Notably, Yoma has scaled up its consumer and automotive businesses well. We maintain our positive view and BUY recommendation with a SGD0.78 TP (26% upside).
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Singapore Exchange CEO scorecard ■ This Jul marks two years since CEO Loh Boon Chye took the helm at SGX. We take this opportunity to review the initiatives he has implemented. ■ We see improved market liquidity, better retail participation, healthier pipeline of IPOs, better cost management and a more targeted business focus. ■ Larger M&As could be on the cards. Acquiring a market data or index business could provide the next leg up for earnings amid unpredictable stock market volumes. ■ Upgrade to Add. We raise FY18-19 EPS forecasts by 2% for higher securities ADVT. Our target price rises to S$8.09, based on 24x FY18 P/E (previously DDM).
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| UOB KAYHIAN | |
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Jumbo Group (JUMBO SP) Expands Into Beijing Jumbo announced a JV to open the first Jumbo seafood restaurant in Beijing following the announcement of the group’s franchise agreement in Vietnam. This is Jumbo’s second foray into overseas franchising after its first venture in Indonesia failed to find traction. If Jumbo can find the right partners this time round, this could be start of group becoming a truly regional brand. Maintain HOLD but with a slightly higher DCF-based target price of S$0.67. Suggested entry price: S$0.61.
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| OCBC | |
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SG Hospitality: Jan RevPAR declines for Economy to Upscale tiers Jan 2017 tourist arrivals increased 4.8% YoY as Indonesian arrivals increased 1.9% YoY while Chinese arrivals jumped 38.2% YoY. Overall RevPAR increased 2.7% YoY in Jan 2017; however, RevPAR for hotels in the Economy, Mid-tier, and Upscale tiers clocked declines. Given that the hospitality REITs under our coverage own hotels mainly in the Mid-tier and Upscale tiers, the Jan data points support our 2017 projection of high single-digit to low double-digit RevPAR declines for the REITs. In this report, we also look at SGD pairs with currencies of major visitor feeder markets – China, Indonesia, and Malaysia. In Singapore, given the challenging operational outlook this year, coupled with the prospect of RevPAR/RevPAU stabilization next year, we encourage investors to buy into the sector on dips. Within the hospitality sub-sector in the REITs space, our top pick is OUE Hospitality Trust [BUY; FV: S$0.75]. Do refer to the S-REITs sector report dated 23 Mar 2017 for our top REIT picks across all sub-sectors. We maintain NEUTRAL on the hospitality sector. |
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