CIMB | DBS VICKERS |
Raffles Medical Group Not yet at the bottom Even after a c.5% share price retreat since its uninspiring 1Q17 results, RFMD is still trading at 25.8x CY18 EV/EBITDA, above peers’ 19x and its 10-yr mean of 20x. As valuations are still lofty, we do not think we are at the bottom yet. We see risks coming from: 1) cost pressures from Singapore hospital extension, 2) additional costs from China in 1H18, and 3) lacklustre domestic operations. Accordingly, we cut our FY18-19F EPS by 9-16% to factor in Chongqing hospital. This lowers our SOP-based TP to S$1.25. Maintain Reduce.
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CapitaLand Mall Trust Time to catch up Attractive valuation. BUY, TP S$2.17. CapitaLand Mall Trust (CMT)’s share price has been flat this year, which has lagging behind both S-REIT index (up 13.9% YTD) and Singapore 10Y government bonds which is down by 30bps to 2.08% since the start of the year. We believe the underperformance is due to investors’ concerns on potential downside earnings risk given the weak operating outlook but we believe these risks are priced in at current levels. Yields spread of close to 3.7% against the 10-year government bond is at its five-year -1 standard deviation (S.D.) level, implying that the yield spread will converge to its long-term mean of 3.3%. BUY!
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OCBC |
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Golden Agri-Resources: Positive long term initiative
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