|CIMB SECURITIES||PHILLIP SECURITIES|
Valuetronics Holdings Ltd
3QFY3/18: firing on all cylinders
■ 3QFY18 core net profit (+30% yoy) at 29% of our/consensus full-year forecasts (9M18: 82%), deemed a beat despite slight seasonality weakness in 4QFY18F.
■ Auto connectivity modules and printers led double-digit ICE sales growth yoy and qoq.
■ CE sales to benefit from new series and wider market penetration of smart lighting.
■ We do not expect supply chain issues, high utilisation level and Danshui lease expiry to significantly inhibit VALUE’s long-term growth.
■ We raise our FY18-20F EPS by 5.2-8.2% on higher sales assumptions, but our TP remains intact at S$1.10 after factoring higher S$/HK$ FX rate. Maintain Add.
Fraser and Neave
Strong start into FY18 despite absence of CNY boost
SINGAPORE | CONSUMER | 1Q18 RESULTS
1Q18 Revenue/PATMI formed 26%/17% of our full-year expectations
Beverages remain a drag; partially mitigated by contributions from its Vietnamese associate, Vinamilk
Continues to accumulate its interest in Vinamilk; Interest increased to 19.50% from 18.74% in end-FY17
Maintained ACCUMULATE and SOTP-derived TP of S$2.83
|OCBC SECURITIES||UOB KAYHIAN|
Wing Tai Holdings Ltd: Valuations not reflective of the cycle
STRATEGY – SINGAPORE
Positioning In Volatile Times
As volatility could remain elevated, we highlight stocks we favour and how we would position to potentially benefit from the volatility.
• Spike in VIX.
After a long period of relatively low volatility, VIX has surged to 25.99 (vs mean of 14.42). This report highlights the stocks we would look to buy opportunistically when the market pulls back and how we would position in the current volatile times.
• FSSTI has retraced 6.3% from ytd peak and we see selective opportunities. Since 3 Jan 18, VIX has surged to 25.99, compared to its mean of 14.42 (since 2013). This is even higher than its +1SD (of 18.2) and this elevated level of VIX was last seen in Aug 15. During the 2015 episode (Greece uncertainties and Renminbi devaluation), VIX surged from 11.95 to 40.74 (from Jul to Aug 15), with a 15% retracement in the FSSTI during that period. Comparatively, the current volatility is not as severe as compared to 2015, and the equity market pull-back, at 6.3% from its ytd peak, is less severe. In our view, the current volatility could offer selective opportunities.
Check out our compilation of Target Prices