| CIMB | UOB KayHian |
|
Ezion Holdings Assuming full control of 4 rigs ■ Ezion finally announced it entered into agreements to buy the remaining 50% stake in its JV with Swissco Holding Limited. Estimated cash outlay is S$5.0m. ■ A 100% stake implies at least c.US$86m worth of consolidated loans, and higher future interest costs. We think it may find a strategic investor to manage the impact. ■ Maintain Add and TP, based on 0.5x FY17F P/BV (50% discount to 5-year mean).
|
CITIC Envirotech (CEL SP) Targeting A Torrent Of S$1b In New Project Wins Initiate coverage on CEL with BUY and a DCF-based target price of S$1.10. With a proven track record in water treatment, CEL is the best in class in offering investors superior technological know-how protected with a suite of IP rights. It is poised to sustain a strong performance in 2016, with a torrent of S$1b in new orderbook wins targeted for 2017. Riding on favourable industry dynamics and the entry of a new strategic shareholder, investors can look forward to new areas of growth in river rehabilitation, sludge treatment and the circular economy.
|
| OCBC | |
|
Mapletree Industrial Trust: Scaling up the value chain Mapletree Industrial Trust (MIT) recently announced that it had successfully clinched a contract for the development of a build-to-suit (BTS) data centre for an established data centre operator. The total development cost comes in at an estimated S$60m. Based on our estimate, the NPI yield on cost for this project works out to be 6.5%. We are positive on this deal, as the property will be fully leased to the client for an initial lease term of more than 10 years and the structure of the lease includes staggered rental escalations and renewal options. This would enhance income stability and visibility to unitholders, in our view. Given management’s continued strategic drive to scale up the value chain by increasing its focus on growing its Hi-Tech Buildings segment and providing customised industrial real estate solutions to its clients, we reiterate BUY on MIT with a higher fair value estimate of S$1.88 (previously S$1.79). |
|
| RHB | |
|
|
Avi-Tech Electronics Riding On March Towards Cloud And Smart Cities Avitech, a total solutions provider for burn-in, burn-in board manufacturing and printed circuit board assembly (PCBA), has successfully recovered from its M&A mishap, and is now in a prime position to ride on the world’s march towards smart cities and digitalisation. Avitech is on track to record stable YoY NPAT growth of 10- 15% in FY17F-18F, with a strong balance sheet (net cash of over SGD31m or 50% of its market cap). The stock is trading at undemanding valuations – FY18F ex-cash P/E of only 4.4x. We initiate coverage on Avitech with BUY, and a DCF-derived TP of SGD0.52 (30% upside).
|
Check out our compilation of Target Prices
