| CIMB | UOB |
|
Cityneon Holdings Third time lucky with Jurassic World
■ Proposed acquisition of 3rd intellectual property (IP), Jurassic World for US$25m, and US$5m profit target; to be funded by existing cash and borrowings. ■ We like its attractive 5x 12M forward P/E valuation, strong franchise, proven track record and new Universal Studios partnership, with secured locations for FY18F.
|
Singapore Press Holdings (SPH SP) Total Ads Decline Slows To 10%; Not Out Of The Woods Yet
Total ads for SPH continued on a decline (-10% yoy) in 4QFY17, but at a lower rate than in 3QFY17. Historical analysis of such a slowdown indicates it is still early to call a reversal to the decline in print revenue. In the best case, we expect print revenue to bottom out and stay flat. Negatives have largely been priced in. Maintain HOLD and target price of S$2.85. Entry price: S$2.60.
|
| OCBC | |
|
Mapletree Logistics Trust: Impressive execution continues
Mapletree Logistics Trust (MLT) has proposed to acquire Mapletree Logistics Hub Tsing Yi in Hong Kong from its sponsor. The purchase consideration of ~HK$4.8b (S$834.8m) represents a discount of 2.7% to the average of two independent valuations on the property and offers MLT an attractive initial NPI cash yield of 5.7%. Funding is expected to come from a mixture of debt and equity. MLT also announced earlier this month two proposed divestments, with the intention to distribute the net divestment gains to its unitholders. We believe management has illustrated its capabilities of generating returns for its unitholders. This strong track record and MLT’s continued astute footprint expansion in overseas markets warrants a further re-rating, in our view. Raising our fair value estimate from S$1.15 to S$1.35, we upgrade MLT from Hold to BUY. |
|
| PHILLIP SECURITIES | MAYBANK KIM ENG |
|
Health Management International Setting for next expansion SINGAPORE | HEALTHCARE | 4Q17 RESULTS
FY17 Revenue was in line with expectation; while Core PATMI missed by 7% due to higher than expected tax Aggregate bed capacity to increase by 16% in FY18; Regency’s new extension block to more than double its current capacity in FY21 Proposed final dividend of RM1.0 Cents per share (20% of FY17 Core EPS) Maintained Buy with unchanged DCF-derived TP of S$0.83
|
UG Healthcare (UGHC SP) Dragged by forex losses and expansion costs Earnings missed on expansion costs; Maintain Sell FY17 earnings missed our estimate by 19% due to higher-than-expected admin expense and weak associates’ contributions. We cut our FY18-19E EPS by 11-16% for higher expansion costs and lower TP 16% to SGD0.21. Our TP is still based on 12x FY18E EPS (c. 40% discount to peers’ target PER of 22x due to UG’s smaller size and shorter listing track record). Maintain SELL due to weak cost management and weaker ability to pass on additional costs. FY17 revenue grew 11% YoY, driven by a 26% capacity increase to 2.4b gloves pa. However, gross margin fell 7ppt to 15% due to a significant increase in average raw materials prices, gas tariff hike, higher depreciation charge for new production lines, and a levy on foreign workers. A further capacity expansion is underway to add another 0.5b by end-FY18.
|
Check out our compilation of Target Prices
