OCBC | DBS VICKERS |
Viva Industrial Trust: Settlement agreement with JIPL Viva Industrial Trust (VIT) announced that a settlement agreement has been reached with Jackson International Private Limited (JIPL) and Mr. Tan Phong Guan, JIPL’s director and shareholder. Key terms of the agreement include a S$1.0m cash payment to the REIT Trustee on top of the Rental Support Bank Guarantee of S$3.9m, and additional security deposits of S$1.7m in relation to the existing leases at Jackson Square (JS) taken up by JIPL subsidiaries. After adjusting our assumptions for JS, our fair value increases from S$0.825 to S$0.83. Maintain BUY. |
Small Mid Cap Strategy Ride on the Tech bull
• Information Technology shines on global macro tailwinds, but there are still gems to be mined • For tech, prefer companies with strong earnings momentum/turnaround, potential M&A targets, strong cash positions – Hi-P, UMS, AEM, Valuetronics • SMC picks – CDL Hospitality Trust, mm2 Asia, Singapore O&G, Hi-P, UMS
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CIMB |
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The Trendlines Group Riding the start-up bandwagon ■ Technology incubator in Israel focusing on early stage medtech and agtech startups, offering them more holistic support than traditional venture capitalists (VCs). ■ 10-year record of reviewing over 500 investment opportunities p.a., raising more than US$160m to date (follow-on capital), making six profitable exits and two IPOs. ■ Lumpy revenue and operating cash flow, but rising income from lab services and follow-on financing could offer some stability in future, according to management. ■ Currently trades at 0.7x FY16 P/BV and P/FMV, significantly lower than global peers’ average of 1.3x.
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DBS VICKERS | UOB KAYHIAN |
AEM Holdings Ltd Entering a new growth phase Successful development of next-gen equipment sets AEM on a new growth path • Firm equipment order pipeline and recurring sale of high-margin consumables from key client’s migration exercise lends visibility beyond next three years • Project earnings growth at 75.6% CAGR over FY16- FY19F • Fair value of S$3.35, based on 10x FY18F PE
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IHH Healthcare (IHH SP) Decent Operations Watered Down By Cost Pressure 1Q17 adjusted earnings fell 15% yoy (in line with our estimates), as top-line growth was offset by start-up costs from new hospitals opened in Mar 17. That said, IHH posted commendable operational stats, which saw increases in both inpatient volume and revenue intensity across all four home markets. While we like IHH for its expansion plans and long-term growth outlook, we believe current valuation at 53x (vs peers’ 40x) has already reflected that. Maintain HOLD with a lower target price of S$1.80. Entry price is S$1.60.
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Check out our compilation of Target Prices