| UOB KAYHIAN | CIMB |
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Sembcorp Industries (SCI SP) India Rising: 1Q18 PLFs Show Steady Performance At About 80%
India reported steady PLF of ~80% for 1Q18. Exceptionally strong performance from SGPL will likely drive an earnings improvement relative to 4Q17. Rising spot electricity prices are encouraging a higher likelihood of PPA issuances, and higher tariffs locked in could drive an earnings improvement for India. However, the earliest window of improvement appears to be Jun 18 onwards. No change to estimates. Maintain HOLD with unchanged target price of S$3.28. Entry price: S$3.00.
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AEM Holdings Ltd Buying opportunity
■ Bloomberg reported that Apple is looking to use its own chips for its Mac computers beginning as early as 2020. ■ Bloomberg estimates Apple contributes c.5% of its current chip supplier’s revenue. ■ We see the share price weakness as a buying opportunity as AEM’s major customer is already targeting new growth areas beyond the computing business segment
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| DBS VICKERS | |
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PACC Offshore Services Holdings (POSH SP) Bulk share disposal by major shareholder to create overhang on POSH
• Malaysian Bulk Carriers Berhad (MBC) is proposing to dispose of its 21.23% stake in POSH via a share offering to its existing shareholders • Indicative offer price based on a 15-30% discount to prevailing market price; to be an overhang on POSH • Silver lining: POSH’s free float could increase to around 29.4%, from the current 18.47% • Downgrade to HOLD with lower TP of S$0.32
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Check out our compilation of Target Prices
