ANALYSTS SAY: Buy, Sell, Hold (1 Mar '18)

UMS Holdings Ltd

FY18 could be another record year

■ 4Q17/FY17 net profit came in above expectations at 34%/111% of our FY forecast.

■ FY17 performance was driven by higher contribution from better margin component sales. Gross material margin for FY17 was 54.7%.

■ It declared a DPS of 3Scts in 4Q17, as per historical practice.

■ UMS remains positive on FY18 outlook as its key customer is looking at double-digit revenue and profit growth in 2018.

■ Raise TP to S$1.31, based on a higher 2.95x P/BV multiple (previously 2.88x).

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Asian Pay Television Trust

Still yielding an attractive return

SINGAPORE | TELECOMMUNICATION| 4Q17 RESULTS

 4Q17 revenue and EBITDA were in-line with our estimates. DPU for 2018 maintained at 6.5 cents, payable quarterly

 Cable TV customers stable with a pick-up from higher margin broadband subscriber base. ARPU from cable TV disappointed.

 We maintained our ACCUMULATE rating. Our target price has been tweaked lower to S$0.62 to account for the lower ARPU and higher cash taxes for FY18e.

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Ho Bee Land (HOBEE SP)

Sentosa Relaunch in the Cards

Maintain BUY with higher TP

FY17 core EBIT was inline with our estimate. There was another asset impairment to Cape Royale and the company may put its Sentosa properties back up for sale to capitalise on the pick-up in sentiment in the high-end market. We raise RNAV to SGD4.48 from SGD4.23 and lift FY18-19F EPS by 2-39% to reflect a higher valuation at The Metropolis and ASP for Sentosa. The stock trades at an undemanding 47% RNAV discount, which we believe should narrow on improving market sentiment. We lift TP by 5% to SDG3.15, based on an unchanged RNAV discount of 30%. Maintain BUY.

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Venture Corp: Scaling greater heights

Venture Corporation Ltd’s (VMS) FY17 revenue grew 39.3% to S$4.0b, driven by a diversified revenue base, continuing strong execution of customers’ programmes and deepening of collaborative partnership with strategic customers. In-line with revenue growth, FY17 operating expenses rose 34.2% to S$3.58b. Consequently, adjusting for one-offs, VMS’ FY17 core PATMI beat our expectations as it jumped 74.5% YoY to S$361.6m, which formed 115% of our estimate. We believe VMS’ growth will be sustainable given its relentless pursuit to create value through deep collaboration with customers. By providing research & development (R&D) services, VMS has been and we believe will be able to continue to ensure customer stickiness, as well as derive strong sustainable margins. In addition, we expect VMS’ strategy to continue pursuing deep collaborative alliances with leaders in fast-growing technology domains of interest will result in persistent top-line growth. Hence, on above expectations FY17, and aforementioned reasons, we adjust our forecasts upwards significantly, as well as roll-forward our valuations. Reiterate BUY on VMS as we increase our FV estimate from S$23.00 to S$34.00.

UOB KAYHIAN

Cityneon Holdings (CITN SP)

2017: Results Above Consensus Expectation; Orderbook Secure For 2018

Cityneon reported its 2017 results which were slightly above our expectation. Net profit rose a stunning 162.9% yoy in 2017 to S$17.4m. The group has secured a US$60m facility to fund the purchase of additional IP rights which might indicate a fourth IP on the horizon. With a strong pipeline of movies from Hasbro, Marvel and Jurassic World, we expect sustained demand for the company’s exhibitions. Maintain BUY with a PE-based target price of S$1.55.

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