| MAYBANK KIM ENG | PHILLIP SECURITIES |
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Jumbo Group Ltd (JUMBO SP) Still Awaiting Catalysts No catalysts for now until new outlets catch up Maintain HOLD following 2Q17 results that missed expectations, which was mainly due to a lack of new outlets, higher franchise development costs, as well as JPOT’s underperformance. FY17/18/19 forecasts reduced by 13%/6%/3% on new outlet timing changes and likely Beijing start-up losses, while margins are trimmed on poorer results of JPOT. Overseas expansion success to be the next catalyst, but we would wait for more proof before turning more optimistic. We note that Jumbo has a strong track record overseas. DCF-TP SGD0.66 (WACC 8.3%, LTG 3%).
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Asian Pay Television Trust Still a 12% yield and paid quarterly SINGAPORE | TELECOMMUNICATION| 1Q17 RESULTS 1Q17 revenue and EBITDA were within our estimates. However, several non-cash items negatively affected headline earnings, namely FX and derivative loss. Both were the result of a stronger Taiwan dollar We are lowering our earnings by 18% to incorporate these non-cash items. No change to our cash-flow assumptions or target price. Dividend guidance of 6.5 cents annually (paid 1.625 cents per quarter) has been maintained
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OCBC |
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Golden Agri-Resources: Underlying profit improved Golden Agri-Resources reported its 1Q17 results yesterday evening, with revenue up 37% YoY to US$2.05b, meeting 27% of our full year forecast, as this was driven by the Plantation segment. Reported PATMI was 60% lower to US$37.6m, forming 18% of our FY17F estimate. Nonetheless, core PATMI grew 70% to US$83.6m, as the key difference was due to a FX loss this quarter vs. a gain in 1Q16. Looking ahead, management is keeping its expectations for FY17 production to a 15-20% growth along with largely steady prices at current levels. Given the current lack of weather extremities coupled with signs of weak global palm oil demand, OCBC Treasury Research remains bearish on palm oil and expects palm oil price of MYR2,650/MT at year end. All considered, we maintain HOLD on the stock with fair value estimate of S$0.38. |
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| UOB | DBS VICKERS |
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FOOD EMPIRE HOLDINGS (FEH SP) 2QFY17: Stable Core Market Currencies Lead To Strong Results Food Empire’s 1Q17 results came in above our expectations as net profit to equity holders rose 58.8% on the back of strong growth in sales for most key markets. As core market currencies stabilise, we expect Food Empire’s strong pricing power to translate into stable growth for the company.
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Genting Singapore Backing the house is the winning card Rally not over yet. We maintain our BUY call on Genting Singapore (GENS) with a revised TP of S$1.35. While GENS’ share price has rallied by over 40% since our upgrade to BUY in August last year, we believe the rally can be sustained. Our view is underpinned by expected positive newsflow including continued recovery in earnings, details of GENS moving towards a more efficient capital structure, refresh of Resorts World Sentosa, and bid for a Japanese casino next year.
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With the CEO buying back shares once again, investors should follow suit. Maintain BUY with a higher PE-based target price of S$0.90 (previously S$0.78).
Check out our compilation of Target Prices