| UOB KAYHIAN |
CGS CIMB |
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KSH Holdings (KSHH SP) 1QFY19: Mixed Results
KSH reported attributable net profit of S$6.0m, or 16.2% of our full-year estimate. Net profit declined 3.8% yoy as share of loss from associates and higher construction costs were only partially offset by a 31.3% yoy rise in revenue. While orderbook remains healthy, the outlook for Singapore residential property is challenging. We cut our target price to S$0.87 as we factor in the impact of cooling measures and tweaks in our Gaobeidian assumptions. Maintain BUY.
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Frasers Property Limited Mixed performance
■ 3QFY9/18 and 9MFY9/18 results were slightly below our expectations. ■ Weaker Australia, hospitality, Europe and rest of Asia performance was partly offset by the better numbers from Singapore. ■ It plans to launch the remaining Singapore site in 1H19 and slow the pace of launches in Australia for rest of FY18. ■ Maintain Add and TP of S$2.02.
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| OCBC SECURITIES | PHILLIP SECURITIES |
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Far East Hospitality Trust: Too far south from our fair value
Since our 1 Aug downgrade (from Buy to Hold) till 10 Aug’s close, FEHT’s unit price has dropped 10.1%. Including total dividends, FEHT has posted total returns of -8.8% during this period, vs. STI’s -0.6% and the FSTREI’s -0.7%. A recent announcement by the Competition and Consumer Commission of Singapore (CCCS) involving Village Hotel Changi could be one of the reasons for the unit price weakness, but believe that the impact to FEHT to be very minimal if at all. Note that the REIT, its trustee and its manager are not named in the proposed infringement decision (PID). We expect FEHT to be largely unaffected by CCCS’s PID, if at all. As it stands, we believe the unit price correction is overdone and see value at 10 Aug’s close. FEHT’s DPU outlook is positive and the counter remains our top pick amongst hospitality S-REITs under our coverage. Upgrade from Hold to BUY with an unchanged fair value of S$0.69.
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China Sunsine Chemical Holdings Ltd Aim for the long-term prosperity SINGAPORE | MATERIALS | 2Q18 RESULTS
2Q18 revenue and net profit exceeded our full year expectation due to higher ASP and GPM, as well as a one-off tax credit granted. Uptrend in ASP and sales volume continued in 2Q18. GPM and NPM reached a record high in 2Q18. New capacity is expected to get approval by 3Q18. We revised down FY18e EPS to 22.9 SG cents (previously 23.3 SG cents) and FY19e EPS to 21.2 SG cents (previously 22.4 SG cents), due to higher R&D expenses and our expectation for upcoming product price to soften by 10.3% compared with the ASP of 1H18. We maintained our BUY recommendation with a lower target price of S$1.77 (previously S1.97).
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RHB SECURITIES |
RHB SECURITIES |
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HRnetgroup Strong PATMI Growth Continues In 2Q18
Maintain BUY and DCF-backed SGD1.18 TP, 36% upside. HRnetgroup reported a strong 2Q18, with topline rising 10.8% YoY and PATMI surging 77.5% YoY to SGD13m. This was contributed by strong performances in North Asia and Singapore, coupled with a rise in GPM to 36.9%. 1H18 PATMI formed 54% of our FY18F PATMI estimates. With net cash of SGD271m, we believe HRnetgroup is likely to make more acquisitions in the near future and focus on new markets, as well as building up its presence in North Asia.
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Kimly A Better 4QFY18 Ahead
Maintain BUY, with an unchanged DCF-backed SGD0.46 TP, 35% upside. Kimly reported a steady topline growth of 4.2% YoY, while 3QFY18 PATMI was down 4.8% YoY on PPE depreciation costs. We expect a better 4QFY18 ahead, mainly on contributions from its recent acquisition: ASC. With SGD60m-plus in cash remaining after the acquisition, we think there will likely be more similar-styled acquisitions to come – this should further propel Kimly’s profitability.
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