CIMB | MAYBANK KIM ENG |
Construction Key takeaways from conference
■ We hosted eight construction companies for our SGX-CGS-CIMB Construction & Infrastructure Day conference on 6 Apr 2018. ■ Construction companies were generally optimistic on 2018 outlook as they expect higher construction demand this year. ■ Payment performance improved in 1Q18, signalling that construction companies could take on more projects in 2018 amid shorter cash cycles. ■ Tender price index seems to be bottoming, although competition remains keen, in our view. ■ Maintain sector Overweight. Yongnam remains our preferred sector pick.
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Genting Singapore (GENS SP) Stay in the game
Reiterate BUY and SGD1.46 TP Since GENS reported 4Q17 EBITDA fell 20% QoQ, its share price has tumbled 14%. Adjusting for normal VIP win rate and non-recurring items, 4Q17 EBITDA would have been 11% higher and a comfortable 24% of our FY18 forecast. In our view, all signals point to the VIP and mass markets improving going forward and GENS’ current share price is unjustified as it implies ‘crisis’ valuations. Our unchanged SGD1.46 TP is based on 12x FY18 EV/EBITDA, in-line with the 9-year 12M forward EV/EBITDA mean.
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OCBC | DBS |
StarHub Ltd: Near-term support from yield
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Ezion Holdings Phoenix rising from the ashes
Upgrade to BUY; TP S$ 0.29, based on 1.4x FY18 book value. Ezion is poised to re-rate from its current insolvency valuation, catalysed by: i) successful refinancing exercise provides 6-year runway; ii) improving utilisation and day rates drives earnings recovery; iii) Temasek-linked Pavilion Capital as strategic investor boosts confidence; and iv) potential strategic partners brighten growth prospects. Ezion’s shares are expected to resume trading on 17-Apr-2018.
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Check out our compilation of Target Prices