CSE Global (CSE SP)
1Q18: Results Above Expectations; Yield Remains Very Attractive At 6.3%
CSE’s 1Q18 results came in above expectations with net profit surging 90% yoy to S$5.7m, driven by stronger yoy sales growth of 23.7%. 1Q18’s order intake fell 41.5% yoy but this was due to a deferment in some new orders to 2Q18. Our investment thesis remains intact as gross margin was higher than expected at 26.8% in 1Q18. Maintain BUY with a higher target price of S$0.61. At the current price, the stock offers a generous 2018 yield of 6.3%.
Perennial Real Estate
Holdings A busy quarter
■ 1Q18 net profit of S$5.1m was below expectations, at 10.5% of our FY18F forecast.
■ Singapore property activities are accelerating with more projects and better leasing commitments.
■ PIHMH to open by mid-2018; wins contract to manage government-built eldercare facility.
■ Maintain Add with unchanged TP of S$1.18.
Fraser and Neave
Stronger performance; Benefitting from Vinamilk
SINGAPORE | CONSUMER | 2Q18 RESULTS
1H18 Revenue/Core PATMI met 50%/27% of our full year estimates
Dairies remained the strongest performer; Vinamilk contributed c.S$33mn or 38% to 1H2018 Group EBIT
Higher input and packaging costs, and brand investment expenses weighed on profitability
Declared interim dividend of 1.5 cents per share, unchanged from last year
Upgraded to BUY but lowered TP to S$2.75 (previously S$2.83) as we trimmed our FY18e earnings by 29% on rising input costs
Land Transport Sector
Demand from taxi hirers returning
SINGAPORE | TRANSPORT SERVICES | UPDATE
ComfortDelGro ordering 200 new taxis – its first in 1.5 years
CCCS investigation into Grab and Uber transaction not completed, and being overtaken by events as new entrants have already entered the market
Taxi population contracted at an accelerated pace, while Rental cars population stabilises as growth moderates
Maintain Overweight on the Land Transport Sector, and "Buy" rating on ComfortDelGro Corp with unchanged target price of $2.50
China Aviation Oil Singapore Corp (CAO SP)
1Q18: Remaining Cautiously Optimistic In View Of Volatile Markets
CAO’s 1Q18 earnings beat expectations with net profit jumping 13.9% yoy. While there were lower trading and optimisation gains, an astounding 46% surge in contribution from SPIA more than offset the decrease. While there will be volatility, SPIA’s core profits should remain sustainable. We remain cautiously optimistic of CAO’s future, given its strong fundamentals. Maintain BUY and target price of S$2.13, pegged at 13.5x 2018F PE, or a 20% discount to peer average of 16.9x.
Strong project pipeline
Purest proxy to Singapore residential volumes.
ERA Realty, a wholly-owned subsidiary of APAC Realty, is one of Singapore’s largest real estate agencies with approximately 6,100 registered agents as at April 2018. We believe that APAC Realty is poised to deliver robust 12% EPS CAGR during FY17-FY19F on the back of a turn in the Singapore residential market, which is at the cusp of a multi-year recovery. The projected FY18F dividend yield of 5.0% based on 60% payout is attractive.
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