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CGS CIMB |
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Valuetronics (VALUE SP) Smart-lighting has Bottomed
1QFY19 in line; TP cut 9% on tempered expectations VALUE’s 1QFY19 PATMI of HKD49.7m (+2% YoY) was in line with our and consensus forecasts. Sales stayed flat, as growth from automotive and consumer lifestyle businesses were offset by the smart lighting drag. We cut FY19-21E EPS by 7-11%, factoring in tempered expectations of the IOT lighting recovery, as well as other growth sources amid unfolding trade and demand uncertainties. ROE-g/COE-g TP is reduced 9% to SGD1.05, now based on 2.3x P/B (prev: 2.5x). Attractive FY19E yield of 6% should provide share-price support. Maintain BUY.
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UMS Holdings Ltd Expects softer revenue in 2H
■ 2Q18 net profit formed 30% of our full-year forecast. 1H18 was 53% of our FY18F, in line with the historical average of 52% for FY10-17. ■ 2Q18 revenue fell 18% yoy due to the decline in orders from its major customer. ■ It declared 2Q DPS of 1 Sct. Net cash position of S$11.6m as at end-2Q18. ■ Management guides for softer revenue in 2H18 but still expects to remain profitable for the full year. ■ TP maintained at S$1.21, based on an unchanged P/BV multiple of 2.82x.
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| CGS CIMB | CGS CIMB |
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CSE Global 2Q18: All systems go!
■ CSE’s 2Q18 core net profit of S$4.3m (+65.7% yoy) took 1H18 core net profit to S$9.0m, accounting for 49%/50.5% of our/consensus FY18F (S$18.4m/S$17.8m). ■ Bottomline was buoyed by a higher GPM of 26.9% (vs. our forecasted 26.8%), mitigating the slightly lower-than-expected revenue. ■ Higher 2Q18 order intake of S$89.1m keeps order backlog at S$148.8m. ■ 2Q18F interim DPS was intact at 1.25 Scts (vs. 1Q17: 1.25 Scts), but heartening was the commitment of a total DPS of 2.75 Scts in FY18F. ■ With numbers in line, we maintain our Add call and target price.
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Jumbo Group Limited Two new local Jumbo Seafood openings ahead
■ 3QFY9/18 results deemed in line; 9M18 net profit formed 71%/64% of our/consensus full-year forecasts. ■ PATMI fell 35% yoy in 3QFY18 due to drag from higher operating costs in People's Republic of China (PRC) to support new outlets and expanded corporate office. ■ We expect better profits ahead with improved contributions from new PRC stores opened in Jan and May respectively. ■ Planning two new Jumbo Seafood outlets in Singapore, which could yield c.S$150 psf/month of sales – double that of Jumbo Seafood in PRC, based on our estimates. ■ Maintain Add with unchanged TPS$0.62.
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UOB KAYHIAN |
CGS CIMB |
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Banyan Tree Holdings (BTH SP) 2Q18: Mixed Bag Of Results, Awaiting Divestment Of China Assets
BT reported a 2Q18 attributable net loss of S$5.3m representing a 56.3% improvement yoy. 2Q18 net loss was attributable to the decline in revenue and share of losses at China associates. Despite a seasonally weak quarter, BT narrowed its net loss position yoy and our investment thesis of a turnaround remains intact as long as the China assets are fully divested. Maintain BUY and SOTP-based target price of S$1.00, implying 86.9% upside.
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Yongnam Holdings Not out of the woods yet
■ Yongnam’s results were below our expectations. The 1H18 net loss of S$13m was mainly due to the low level of strutting and fabrication work. ■ Order book stood at S$273m as at end-Jun 18, a significant uplift from the S$142m in orders at end-Mar after winning the N103 contract for North-South Corridor. ■ It is actively pursuing S$1.4bn worth of projects in Singapore, Hong Kong, Australia, and other developing countries in Asia. ■ We change our FY18F EPS to LPS and cut our FY19-20F EPS by 3-43% in view of delays in getting strut works from North-South Corridor and Melbourne Metro projects. ■ Maintain Add with a reduced TP of S$0.45, based on 0.8x FY19F P/BV.
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