ANALYSTS SAY: Buy, Sell, Hold (21 July 2017)

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CIMB	CIMB
Keppel Corporation Property proxy, but O&M weakness still matters ■ 2Q17 net profit of S$160m missed our expectation of S$230m and consensus’ S$204m. 1H17 net profit formed 44% and 48% of our and the market’s FY17F. ■ O&M did not recover qoq with S$1m of net profit in 2Q17, which was propped up by gains from the sale of PPE. ■ Property remained steady from stronger sales in Singapore and completion in China. ■ Maintain Hold and target price of S$7.24, based on SOP. Despite being viewed more as a proxy to the property sector, O&M weakness may still matter for now. Read More ...	Ascott Residence Trust One-off FX gain props up 2Q17 ■ 1H17 DPU of 3.36 Scts (-11% yoy) formed 51% of our full-year forecast, which we consider to be above our expectations. 2Q17 DPU of 1.84 Scts was at 28%. ■ We expect a stronger 2H with additional contributions from DoubleTree Hilton NY and AOS, as well as US seasonality, which is back-end-loaded. ■ Overall, we continue to see tepid growth for ART. However, we factor in a lower beta to reflect ART’s bond-like stability, resulting in a higher DDM-based TP. ■ Maintain Hold, with projected total returns of c.3%. Upside risks could include accretive-acquisitions, while downside risks could spring from slower macro growth. Read more...
UOB KAYHIAN
Keppel Corporation (KEP SP) 2Q17: Earnings Below Expectations; Keppel Capital To Drive Growth Keppel reported 2Q17 core net profit of S$147.3m, below expectations. Higher earnings from O&M was largely offset by higher net interest expense. Except for the Infrastructure division, the other units saw better performance. The O&M contracting outlook remains difficult. Keppel Capital targets to double AUM in five years as it grows earnings from the division. We revise earnings by 1-3% and roll over to 2018 target price of S$6.86. Near-term earnings catalysts are not apparent, maintain HOLD. Entry price: S$6.20. Read more...
DBS
Hutchison Port Holdings Trust Lacklustre earnings lead DPU cut Maintain HOLD with TP of US$0.42 as DPU guidance of 20-23 HKcts for 2017 is maintained. We see HPHT as fairly valued given its current prospective yield of 5.9% as the group is maintaining its DPU guidance of HK 20-23cts for FY17F following lacklustre interim results. We expect DPU for FY18F to stay flat from FY17F as any improvement in operating earnings would likely be eroded by higher interest costs. Read more....

Check out our compilation of Target Prices

Counter Name	Last	Change
AEM Holdings	1.860	-0.020
Best World	2.480	-
Boustead Singapore	0.955	-
Broadway Ind	0.140	0.006
China Aviation Oil (S)	0.870	-0.005
China Sunsine	0.395	-
ComfortDelGro	1.400	-0.010
Delfi Limited	0.875	-0.005
Food Empire	1.130	-
Fortress Minerals	0.310	-
Geo Energy Res	0.295	-
Hong Leong Finance	2.430	-
Hongkong Land (USD)	3.410	0.010
InnoTek	0.505	0.005
ISDN Holdings	0.305	-
ISOTeam	0.047	-0.001
IX Biopharma	0.043	-
KSH Holdings	0.245	-0.005
Leader Env	0.049	-
Ley Choon	0.056	0.004
Marco Polo Marine	0.071	-
Mermaid Maritime	0.133	-0.019
Nordic Group	0.305	-0.005
Oxley Holdings	0.089	0.002
REX International	0.124	-0.002
Riverstone	0.925	-0.005
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	-
Sunpower Group	0.230	-0.005
The Trendlines	0.063	-0.001
Totm Technologies	0.021	0.001
Uni-Asia Group	0.845	0.015
Wilmar Intl	3.160	-0.020
Yangzijiang Shipbldg	1.770	-

Counter Name

Last

Change

AEM Holdings

1.860

-0.020

Best World

2.480

Boustead Singapore

0.955

Broadway Ind

0.140