| CIMB | MAYBANK KIM ENG |
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Guocoland Look beyond these results
■ FY6/17 core net profit below our expectation, at 73% of our full-year forecast, on slower-than-projected overseas earnings contributions. ■ Singapore underpinned by billings from ongoing projects; Martin Modern launch to be felt from FY18. ■ Recurrent income sources to make up c.40% of FY18F operating profit. ■ Deployed S$1.4bn of capital into new investments and land acquisitions. ■ Maintain Add with a higher TP of S$2.77.
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Japfa (JAP SP) Feeding Asia’s Growing MiddleClass An industrialised farmer beset by a down cycle
Japfa is an agri-food company that has operations across five geographies (Indonesia, Vietnam, China, Myanmar and India) and animal proteins (poultry, pork, fish, beef and dairy). However, a weak operating environment across two of its main markets, Indonesia (poultry) and Vietnam (pork) has weighed heavily on its recent performance. Core net profit dived 65%/94% YoY in 1Q/2Q17 as operating margins contracted to 5%/7% due to falling average selling prices.
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| OCBC | |
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Wing Tai Holdings Ltd: Steady improvement in FY17 results Wing Tai’s 4QFY17 PATMI increased 406% YoY to S$9.5m mostly due to a positive lift from taxes and higher share of profits from associates and JVs. We note, however, that operating profit worsened from a S$4.1m loss in 4QFY16 to a S$12.9m loss in 4QFY17 due to lower contributions from property development, though the fall through to the PBT line was partially mitigated by a higher share of profits from Wing Tai Properties Ltd in Hong Kong. In terms of the topline, 4QFY17 revenues similarly fell 58% YoY from S$140.7m to S$58.6m due to lower development contributions. Full year FY17 PATMI was broadly within our expectations. A total dividend of 6.0 S-cents was proposed, unchanged from the previous year. We continue to like Wing Tai for its compelling valuation (0.52x PB) and healthy balance sheet, and see the group to be well positioned to benefit from firmer conditions in the domestic housing sector. Maintain BUY with an unchanged FV estimate of S$2.37.
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| UOB KAYHIAN | RHB |
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NetLink NBN Trust (NETLINK SP) Unassailable Foundation Of Next Gen NBN
NetLink operates the only passive fibre infrastructure to provide wholesale dark fibre services for ultra-high-speed fibre connections. It has a dominant market share of 81.7% for residential and 30.8% for non-residential connections, where growth is projected at a 5-year CAGR of 7.2% and 10.1% respectively in 2016-21. The Smart Nation initiative also provides numerous opportunities for growth. Initiate coverage with BUY. Target price: S$0.93.
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Keppel Corp One-Two Punch
Keppel announced new contracts worth c.SGD540m for two LNG fuel containerships and a paring down of its stake in Hilli Eposiyo FLNG. The company also announced that it is selling of its Nantong Waterfront Residences project for a gain of approximately SGD72m, which should be reflected in its 3Q17 earnings. We maintain our positive view on Keppel as all of its segments are firing. We make no changes to our earnings and maintain our BUY recommendation with unchanged SOP-based TP of SGD7.34 (16% upside).
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