ANALYSTS SAY: Buy, Sell, Hold (27 Sept 2017)

Banyan Tree Holdings (BTH SP)

Key Takeaways From Marketing Trip: Relaxing Beneath The Banyan Tree

The turnaround story for BT remains intact as management shared their optimism for the future and re-iterated their strategy to offload assets, increase revenue and improve margins. Management estimates that BT’s huge beachfront land in Thailand is worth S$5b-6b in gross developmental value. We incorporate contributions from its China hotel management JV and the dilution effect from the Accor and Vanke deals. Maintain BUY and tweak our SOTP-based target price to S$0.92.

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KSH Holdings: Hosts Rock-climbing
Championship at Sino-Singapore Health City

KSH reported that the 10th Chinese National Youth Rock Climbing Championship has officially commenced at the Mountain Climbing Training
Centre & Outdoor Sports Centre in Gaobeidian, Hebei Province, China, which is part of the
consortium’s Sino-Singapore Health City development project. The championship
attracted more than 150 contestants from mainland China, Hong Kong, Macau and Taiwan, and the management team expects that the Sino-Singapore Health City will be a choice destination for national and world competitions which will attract tourists, sport broadcasters and outdoor sport lovers. The Sino-Singapore Health City project is being developed by a Singapore
consortium consisting of KSH Holdings Limited, Oxley Holdings Limited, Lian Beng Group Limited, Heeton Holdings Limited and Zap Piling Pte Ltd. Our fair value estimate of S$0.86 is adjusted to S$0.69 to reflect the recent bonus share issuance of one bonus share for every four
existing shares. Maintain HOLD.

Bumitama Agri

Trading Below Replacement Value

Investors were interested to find out more about Bumitama’s FFB growth outlook as well as improving age profile during our 2-day NDR in Singapore recently. With P/E valuations trading below its historical mean and EV/ha valuations trading below replacement value, investors found the company to be an interesting proxy to the recovery in CPO prices when the cycle turns. We maintain our BUY recommendation, with an unchanged TP of SGD0.85 (15% upside), which implies an EV/ha of USD9,000, which is at the lower end of its peers’ USD9,000-13,000/ha.

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