| MAYBANK KIM ENG | OCBC |
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Hi-P International (HIP SP) An apple a day Broad exposure to global electronics brands Hi-P started operations in the 1980’s as a tooling house for electronics firms and has over the decades evolved into an ODM and EMS solutions provider. From our recent company visit, we understand that market leaders like Apple1 , Seagate, Colgate and Keurig are amongst its roster of customers in wireless communications, computing and peripherals and consumer electronics sectors. Management is optimistic in delivering profit growth with new product launches and better operating efficiency.
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CapitaLand Retail China Trust: Share price has reached FV Demand indicators for the broad Chinese retail market continue to look healthy, though we note that the Beijing retail market faces a substantial supply injection for the remainder of 2017. In our previous report, we highlighted the recovery of CapitaMall Minzhongleyuan (MZLY) and contributions from recently acquired CapitaMall Xinnan as two key catalysts for CRCT going forward. While we continue to see some upside from MZLY and Xinnan, we note that current price levels are more reasonable than the depressed levels we previously saw. According to our dividend forecasts, CRCT is trading at a 6.7% FY17F yield. Given the current price levels after the sharp gain YTD, we downgrade CRCT to HOLD with an unchanged fair value of S$1.58.
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| UOB KAYHIAN | |
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Plantation – Regional Indonesia’s Biodiesel Consumption Could Be Lower In 2017 Post our meeting with Pertamina, we are slightly negative on the demand outlook from Indonesia. We understand that the biodiesel volume that was not delivered in May-Jun 17 will not pick up in the coming months. Thus, the total biodiesel uptake in 2017 is likely to be lower than 2016’s. CPO production is expected to pick up significantly in 2H17 and stagnant demand will lead to CPO price weakness in 2018. Maintain MARKET WEIGHT.
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