ANALYSTS SAY: Buy, Sell, Hold (13 Sept 2017)

Y Ventures Group

E-commerce proxy

■ YVEN is a Singapore-based online e-commerce and data analytics provider.

■ 1H17 revenue grew 47.1% yoy due to higher sales of goods on online marketplaces but YVEN slipped into net loss of US$0.2m due to one-off IPO-related expenses.

■ YVEN aims to expand its online presence in the UK, Europe, Northeast and Southeast Asia, expand its product range and enhance its data analytics capabilities.

■ YVEN is trading at a historical FY16 P/E of 24.3x.

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Keppel Corporation: Well-placed to benefit

Keppel Offshore & Marine recently entered into a Heads of Agreement (HOA) with Pavilion Energy and Indonesia state-owned PT Perusahaan Listrik Negara (PLN) to explore opportunities in the development of small-scale Liquefied Natural Gas (LNG) distribution in West Indonesia. Indonesia’s small-scale LNG market is a new growth segment that offers interesting opportunities amidst lacklustre demand in the traditional LNG market, but time and investments will also be needed for the roll-out of infrastructure and other developments. As such, while we are optimistic of KEP’s good position to capitalise on any upcoming opportunities, we are not banking on immediate significant orders that can replace the void from jack-up rig orders. On the other hand, KEP’s property and investments divisions should be expected to support earnings, driven by China’s ongoing upcycle and Singapore’s impending property market recovery. Maintain BUY with S$7.36 fair value estimate on KEP.

SATS (SATS SP)

Risk/Reward Tilted Towards The Upside, Expecting 16% Total Return Over The Next 12 Months

Risk/reward for SATS is tilted towards the upside over the next two quarters. We expect SATS to secure inflight catering and ramp handling contracts from Qantas and very likely from Norwegian Air too. We expect 2QFY17 earnings to rise qoq from the inclusion of Jetstar Asia’s catering contract and the ground handling contract for AirAsia. Together with dividends, we expect SATS to generate a total return of 16% over the next 12 months. Our target price of S$5.40 implies an FY18F PE of 23.5x and 18x ex-cash. Maintain BUY.

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