| UOB KAYHIAN | CIMB SECURITIES |
|
STRATEGY – SINGAPORE 4Q17 Results Wrap – In Line; Sporadic Dividend Surprises
55% of the 4Q17 results are in line, with sporadic dividend surprises. Our 2018 market EPS growth forecast is up to 8.4% (from 8.1%) owing to a lower base in 2017. We remain selective and hopeful for earnings upgrades to drive the market further.
|
Offshore & Marine Hope to restart work for Petrobras but may take time
■ Upstream reported that Petrobras and Sete Brasil have reached an agreement to build and deliver 4 drilling units. ■ We believe the units are likely semi-subs that belong to KEP (Urca and Frade) and SMM (Arpoador and Guarapari), which are largely completed. ■ We also believe the finalisation of construction could still take a while depending on financing structure. There have been no announcements by KEP/SMM. ■ Maintain OW on the sector, with order wins as the key catalyst.
|
| OCBC SECURITIES | PHILLIP SECURITIES |
|
DBS: Still our top pick in the sector
Since we raised our fair value estimate on 1 Feb 2018, the stock has moved up from S$26.61 (on 1 Feb) to as high as S$29.63 (on 26 Feb 2018), a gain of 13.4% in less than a month. DBS has consistently stayed as our top pick in the banking sector and it has recorded a stellar gain of 15.9% year-to-date, outperforming the STI. With the US Federal Reserve Chairman Jerome Powell’s latest comment, most economists are now expecting four Fed hikes in 2018. With the re-rating of Asian banks, which are now trading at 1.6x book, we believe that DBS deserves to trade at the same or higher valuation. We have raised our valuation to 1.7x book, bringing our fair value estimate from S$29.50 to S$32.53. Maintain BUY.
|
China Sunsine Chemical Holdings Ltd What an outstanding year SINGAPORE | MATERIALS | 4Q17 RESULTS
FY17 net profit was in line with our full year expectation. ASP surged in FY17. The trial run of new capacity is pending approval. We maintained our FY18e EPS (16 SG cents) and tweaked our FY19e EPS to 17.7 SG cents (previous 17.6 SG cents). We maintain our BUY recommendation with an unchanged target price of S$1.60.
|
|
KGI FRASER |
|
|
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.
|
|
Check out our compilation of Target Prices
