ANALYSTS SAY: Buy, Sell, Hold (15 Aug 2017)

First Resources Ltd

Weaker qoq earnings due to lower output

■ 1H17 core earnings were broadly in line, making up 42% of our full-year forecast.

■ FFB output surged 27% yoy to a new record high in 1H, as El Nino effect waned.

■ This, coupled with higher CPO prices and refining margins, lifted 1H earnings.

■ However, 2Q net profit fell 50% qoq due to lower output (-13.1%).

■ Maintain Add with an unchanged target price of S$2.32 (13x FY18F P/E).

Read More...

Bumitama Agri (BAL SP)

Astounding 2Q output growth

Driven by post El Nino yield recovery

BAL posted a remarkable 2Q17 FFB output growth of 90% YoY (+26% QoQ) albeit from a low base in 2Q16. 2Q17 results were above our and market expectations. We keep our earnings forecasts pending an update. BAL remains a BUY with an unchanged SGD0.96 TP on 14x FY17 PER, its 4- year mean. An interim DPS of 0.75 SG cents was announced.

Read More ...

Golden Agri-Resources (GGR SP)

2Q17: Results Within Expectations

GGR reported a 1H17 core net profit of US$137m, which is in line with our expectation. FFB production surpassed 1H15’s level, suggesting the lagged impact from the severe drought is weakening. With the higher CPO ASP yoy, 1H17 core net profit increased over 100%. However, 2Q17 earnings were weaker qoq mainly due to lower production from the plantation division and the oilseeds division’s weaker margin. Maintain HOLD. Target price: S$0.34. Entry price: S$0.30.

Read More ...

Wheelock Properties (S) Ltd: Respectable sales across launched projects

2Q17 PATMI increased 3.4% YoY to S$36.5m mainly due to higher sales from Scotts Square and the Fuyang City project in China, and lower selling and marketing expenses, partially offset by lower sales at Ardmore Three and The Panorama and lower interest income from the group’s investment in quoted securities. All considered, we deem this quarter’s results to be fairly healthy and in line with expectations. Despite primary sales activity in the high-end segment being relatively muted over 1H17, Wheelock has achieved a respectable level of sales across its launched projects. 85% (71 out of 84 total units) of Ardmore Three has been sold after it was re-launched in April 2016 and we understand that the Panorama is now fully sold. The group’s balance sheet remains solid with S$447.7m in cash and equivalents and is in a net cash position. Currently at 0.71x price-to-book, we believe the stock remains attractively priced. Maintain BUY with an unchanged S$2.27 fair value estimate.

mm2 Asia

Growth path on track

Healthy growth even without Golden Village cinema deal.

In view of the uncertainties surrounding the Golden Village (GV) deal, we have removed GV’s contribution from our earnings estimate. We are still expecting healthy EPS growth of 9% for FY18F and a much stronger 34% for FY19F, after factoring in the enlarged share capital from the recent equity fund raising exercise. The strong set of 1Q18 results, with net profit up 30% to S$6.4m, further reinforces our positive view.

Read More ...