| MAYBANK KIM ENG | CIMB |
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Singapore Economics Export Momentum Pointing to Strong 3Q GDP Growth Continued Export Momentum
Exports continued their positive momentum in August, with electronic exports showing no signs of waning. Non-oil domestic exports (NODX) surged by +17% in August (vs. +7.6% in Jul), driven by electronics exports (+21.7% vs. +15.3% in Jul). Non-electronics exports also accelerated (+15%) as pharmaceuticals (-9.1% vs. -53.6% in Jul) declined at a softer pace. Non-oil re-exports, a proxy for wholesale trade services, surged by +11.9% from a year ago (vs. +16.7% in Jul), driven by both electronics (+21.1%) and nonelectronics (+2.5%).
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Sembcorp Marine Capturing market share
■ We estimate SMM will bag around US$440m-500m in contracts for at least two large Compressed Gas Liquid (CGL) carriers from American company, SeaOne. ■ This news is positive for SMM and we think the contract will materialise by end-2017F or early 2018F, lifting the lacklustre order momentum YTD. ■ Maintain Add and our target price of S$1.87, still based on 1.5x FY17F P/BV (in line with the average trading band in 1996-2003, pre-rig boom).
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| UOB KAYHIAN | |
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Singapore Airlines (SIA SP) August’s Load Factor Continues To Improve, But At The Lowest Pace Since April
While SIA’s load factors continued to improve for the financial year, August’s 0.3ppt was the lowest since the start of FY18. Notably, SIA had cut capacity to Europe and the Americas and this aided load factor. We are also mindful of further pressure on loads or yields amid recurring terror attacks increasing competition. Maintain HOLD. Target price: S$10.10. Entry price: S$9.50 or lower.
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Check out our compilation of Target Prices
