UOBKH | Credit Suisse |
Oversea-Chinese Banking Corporation (OCBC SP) 1Q18 Results Preview: Credit Costs Normalise Downwards To Pre-Oil & Gas Levels
We expect OCBC to report robust loan growth of 7.9% yoy and 2.2% qoq in 1Q18 due to positive business sentiment and strong demand from the corporate sector. NIM continues to expand as SIBOR and SOR march higher steadily. We expect fee income to grow 4.6% yoy despite a high base in 1Q17, driven by wealth management. Credit costs should normalise downwards to levels prior to the crisis from the oil & gas sector.
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Keppel Corp
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UOBKH | CIMB |
Banyan Tree Holdings (BTH SP) Expecting Stellar 1Q18 Results; Buying Up A Subsidiary On The Cheap
BT’s turnaround story continues as the tourism boom in Thailand fuels expectations of a stellar 1Q18. Putting aside the hidden value in LRH, the enlargement of BT’s stake in LRH represents a steal as BT is only paying 54 S cents on the dollar for LRH’s NAV. Also, the deadline for Accor/Vanke to exercise their options (at 15% premium) creeps closer. We tweak earnings upwards due to the increased stake. Maintain BUY and raise our SOTP-based target price to S$1.00.
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Accordia Golf Trust Teeing off to a new game?
■ We visited four of AGT’s golf courses in Nagoya over 16-17 Apr 2018. ■ Bloomberg consensus projects AGT to record FY3/18F dividend yield of 7.8%, with FY18F P/BV of 0.7x and P/E of 2.3x. ■ Following MBK’s acquisition of AGT’s sponsor, Accordia Golf Co Ltd, management said the former is more willing to approve spending to enhance golf course values. ■ Dividends are derived in JPY and paid in S$. The company engages in short-term hedging on the distribution amount to minimise foreign exchange risk to unitholders
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UOB KH | |
Keppel Corporation (KEP SP) 1Q18: Below Expectations; China Property Earnings Facing Downside Risk Keppel reported 1Q18 net profit of S$337.5m, boosted by net gains of S$289m from the divestment of Zhongshan. Excluding this and one-offs, core net profit was S$55m, forming 7%/6% of UOBKH/consensus estimates respectively, below expectations. A 74% yoy decline in China home sales as well as reduced launches in 2018 see our property earnings estimates having downside risk. Our earnings forecasts are under review. Maintain BUY with a lower target price of S$9.00. |
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