| CIMB | MAYBANK KIM ENG |
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UOL Group Steady ship ■ 2Q/1H17 EPS was in line with expectations, at 28%/51% of our FY17 forecast. ■ Residential was the star contributor, making up 56% of revenue. ■ Ongoing projects continue to see improving take-up qoq; plans to launch 3 new projects in 2018F. ■ Rental income boosted by inorganic growth; modest outlook for hotels. ■ Maintain Add with a higher RNAV-backed target price of S$9.03. 2Q17 results highlights UOL reported 2Q17 net profit of S$109.4m, +59% yoy, in line with our expectations. Stripping out fair value gains, core net profit was S$100m, +11% yoy. The improvement was due to higher associate contributions from UIC and better property development income.
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Best World International (BEST SP) Strong momentum in China c.5% EPS beat from China strength; raise TP by 7% 1H17 EPS beat our estimate by c.5%, at 52% of our FY17E, as higher net margin China sales outperformed. 4Q is the seasonally strongest quarter. In 2Q17, China sales grew 125% YoY and 24% QoQ, due to strong demand for DR’s Secret skin care products. This more than compensates the softer sales in Taiwan, which fell 34% YoY, due to more promotions done in 2016. We expect China’s momentum to continue from further geographical expansion. We raised our FY17-19E EPS by 6-7% after increasing out China sales forecast. Maintain BUY and our TP increased by 7% to SGD1.88, pegged to an unchanged 19x FY18E EPS (PEG of 0.7x using FY16-19E EPS CAGR of 27%). We ascribed c.30% discount to the PEG of 1.0x for regulatory risks and competition.
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| PHILLIP SECURITIES | |
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DBS GROUP HOLDINGS LTD Profit before Allowance remains Weak as Coverage Ratio Deteriorates SINGAPORE | BANKING | 2Q17 RESULTS 2Q17 PATMI of S$1.13bn missed our estimate by 12.4%. The downside surprise came from higher-than-expected provisions. Maintain “Reduce” rating with a higher target price of S$17.92 (previous TP S$17.24) based on Gordon Growth Model (previously 0.95x FY17F PBR, excluding preference shares).
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| UOB KYAHIAN | RHB Securities |
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Alpha Picks: Refreshing Picks For August
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China Everbright Water Sponge City Project Is Underway China Everbright Water’s 2Q17 results came in slightly ahead of our expectation. 2Q17 revenue grew 30% YoY to HKD669m on the back of increased construction activities related to the sponge city project and the river basin ecological restoration project. PATMI surged 81% YoY, led by stronger revenue, tariff hikes and the absence of forex losses. With the sponge city project underway, we believe FY17 would continue to be a strong year for the company. Maintain BUY, with an unchanged DCFbased TP of SGD0.54 (13% upside).
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