UOB KAYHIAN | MAYBANK KIM ENG |
Singapore Press Holdings (SPH SP) 2QFY18: Finding An Earnings Floor; Upgrade To HOLD
SPH reported in-line 1HFY18 core net profit of S$90m, forming 43%/41% of UOBKH/consensus estimates. Display advertising revenue decline was smaller than implied by our page counts, suggesting that the aforementioned pick-up in retail ad spending is gathering pace. Media earnings decline might be near a floor and the current 5.2% forward dividend yield should provide share price support. Upgrade to HOLD and tweak our target price to S$2.41. Entry price: S$2.30.
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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 | CIMB |
Oil & Gas sector: Brent hits highest intraday since Dec 2014
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Excelpoint Technology Ltd More than 30 years of experience
■ EBN recognised Excelpoint as one of the top 25 global electronics distributors in 2017. ■ None of Excelpoint’s customers accounted for more than 10% of its FY17 revenue. ■ FY17 revenue grew 16%, while net profit growth was 14.8% yoy. ■ The company is positive on its earnings outlook, given the growth potential for the Internet of Things. ■ Excelpoint trades at FY17 P/E of 7.7x, P.BV of 0.85x. FY17 dividend yield is 6.47%.
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