UOB KAYHIAN | OCBC |
SIA Engineering (SIE SP) New Engine JVs Offer Long-term Growth Prospects But PE Valuation Unjustified SIAEC announced a slew of engine maintenance JVs over the past three weeks. Among these, the JV with GE Aviation holds scope for near-term earnings, while the JV with Pratt & Whitney offers long-term prospects. As a result, we expect incremental engine maintenance revenue and have raised JV & associate income by 5% and 10% in FY18-19 respectively. Valuations remain high. SIAEC trades at 26x FY18F PE vs global peers’ 23x. Maintain SELL. Target price: S$3.60.
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Venture Corp: Opportune time to accumulate
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PHILLIP SECURITIES | |
Thai Beverage The dominant and expansive giant SINGAPORE | CONSUMER | INITIATION 8% p.a. earnings growth from premiumization, growing share in beer and tapping the vast CLMV market Commands 90% market share in spirits with S$1bn cash-flow generated yearly Faster growing F&N, Oishi and Sermsuk brands become the beachhead for 2020 target of 50% earnings from non-alcoholic beverage Initiate coverage with “Accumulate” rating with a SOTP-derived TP of S$1.05.
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