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UOB KAYHIAN |
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Yanlord Land Group: Not one, not two, but threefold growth!
Yanlord Land Group Limited (Yanlord) reported a strong set of 2Q18 results which beat our expectations. PATMI more than tripled YoY to RMB1,478.2m. Looking ahead, Yanlord has RMB14.2b of accumulated pre-sales pending recognition, as at 30 Jun 2018, with advances received amounting to ~RMB11.5b. Due to its growth path, its net gearing ratio rose QoQ from 52.9% to 78.3%. During 7M18, Yanlord achieved contracted sales of RMB13.1b and sold 339k sqm of GFA. Management updated that it has RMB47-50b worth of saleable resources. Based on an assumed sell-through rate of 65%, this would translate into a total contracted sales target of RMB30b-32.5b for FY18. Following this sturdy set of results, we raise our FY18 and FY19 core PATMI forecasts by 6.9% and 1.3%, respectively, even as we increase our finance costs assumption. We also incorporate an updated FX assumption of S$1 : RMB5. Finally, we lower our target P/E peg from 6x to 5.5x. This is approximately one standard deviation below its 5 year mean P/E of 7.2x. Following these adjustments, our fair value dips from S$2.24 to S$2.13. Maintain BUY.
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Singapore Medical Group (SMG SP) 1H18: Delivering On Growth Promises But Undervalued
SMG’s 1H18 results are in line with our expectations. Net profit rose 70.2% yoy due to higher revenue growth and gross margins. Domestic performance has also been steady. With its solid execution record and platform to grow in the region, the group is poised to see strong earnings growth. The stock is trading at an undemanding 14.9x 2018F PE. Maintain BUY with an unchanged PE-based target price of S$0.74.
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| CGS CIMB | CGS CIMB |
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mm2 Asia 1QFY19 in line; content development underway
■ 1QFY19 core PATMI of S$7.2m was broadly in line with our/consensus expectations. ■ North Asia remains the focus for mm2’s core production business while geographical and content diversification will enable Unusual to capture greater audience share. ■ We like Vividthree’s ‘Train to Busan’ set; its upcoming listing is a potential catalyst.
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Thai Beverage 3Q18: Awaiting a consumption recovery
■ 3QFY9/18 net profit of THB6.0bn was below expectations on higher SG&A. 9MFY18 formed 65.7%/70.1% of our/consensus FY18F expectations (S$26.8m/S$25.1m). ■ Domestic spirit and beer volumes were still low as the rural economy is still cautious on spending in Thailand; but the drop in spirits volume in 3Q18 was a surprise. ■ The SABECO optimisation will take place in earnest now that ThaiBev has four of the seven board seats. Management is looking for ways to improve business productivity. ■ We think the sluggish domestic environment will persist until FY19F, hence we lower our FY18-20F earnings in the interim. ■ We lower our SOP-based TP but maintain our Add call.
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UOB KAYHIAN |
RHB |
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Plantation – Singapore Anticipating A Better 3Q18 Performance
2Q18 results were strong. Three out of 4 companies’ results were above expectations. The earnings surprise from WIL and FR was mainly due to better-than- expected downstream margins, while the positive variance for BAL was from higher external fruit intake and realised CPO ASP. 3Q18 production is expected to continue to improve and is likely to peak in Sep-Oct 18. Increasing biodiesel consumption will be a key supportive factor to CPO prices. Maintain MARKET WEIGHT.
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GSS Energy Oil Exploration Results Unveiling Soon
After our conference call with management, we remain positive on GSS and maintain BUY. That, and our new SOP-based TP of SGD0.22 from SGD0.25 offering 65% upside, is based on a one-off non-cash impairment of SGD2.95m in its 2Q18 results. The impairment was mainly on its old investment in the West Jambi block, with the focus mainly now on the Trembul operating area. Core earnings remain positive, with topline rising 12.1% YoY and PATMI surging 354% YoY for 2Q18. We expect the PE business to be more robust in the 2H18, while oil exploration results on its second well are anticipated to be made known soon.
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