| UOB KAYHIAN |
MAYBANK KIM ENG |
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CapitaLand Commercial Trust (CCT SP) Gallileo Acquisition A Done Deal
The acquisition of 94.9% of Gallileo Property has been completed, extending CCT’s footprint to the Frankfurt prime CBD area (5% exposure to Germany). Management has guided for acquisitions of core commercial assets in key gateway cities, targeting an allocation of 10-20% of its deposited property overseas. At home, CCT’s CapitaSpring has secured JP Morgan as anchor office tenant, and is well-positioned to ride on the cyclical recovery in the Singapore office segment. Maintain BUY with a higher target price of S$2.11, factoring in the Gallileo Property acquisition.
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Japfa Ltd (JAP SP) Serving up a high-protein diet Shaken, but not stirred; Initiate BUY
After a forgettable 2017 marked by the impact of regulation and other adverse market factors that affected a number of its divisions, we believe Japfa is on a recovery path and see FY18E-20E profit back up to USD89-116m levels from USD16m in FY17. Its integrated industrialised farming model across multiple proteins and geographies in Asia should make it a long-term winner from the secular trend of rising protein consumption in Asia’s growing middle class. Around 70% of our FY18E EBIT forecast is derived from the relatively stable animal feed and dairy segments. Japfa currently trades at 9x FY18E P/E while our SOTP based TP of SGD0.86 implies 14x FY18E P/E, a 13% discount to peers’ 16x.
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| OCBC | RHB |
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Singapore Airlines: Getting tougher to fill the spaces
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Consumer Set For The Year
Maintain OVERWEIGHT. Top Picks are Sheng Siong and Food Empire. We remain optimistic about Singapore’s consumer sector, as economic growth continues to bolster domestic spending, while tourism activities remain strong. Our channel checks show that retailers are revamping themselves to attract consumers to spend. Beyond Singapore, sentiment in the region is also improving. This is positive for the sector since most stocks under our coverage have exposure in regional markets.
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KGI Securities |
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| Since its invention of the world’s first anti-theft protection technology that uses encrypted codes on consumer electronic products, DISA has focused all its resources on its anti-theft business and continues to ramp down its other businesses with revenue from technology making up 64% of total revenues at 9M2018. Given that Walmart is now using DISA’s technology, we believe the time is ripe for the firm to ramp up its market penetration. Based on our projections, we forecast DISA to breakeven in FY21F and revenue growth at a CAGR of 135% from 2017 to 2021F. We initiate coverage on DISA with a BUY recommendation and a target price of S$0.02, based on a DCF valuation with WACC at 14.5% and terminal growth rate at 0%, implying a 2021F P/E of 23.9x. Read more... |
Check out our compilation of Target Prices
