ANALYSTS SAY: Buy, Sell, Hold (1 Feb '19)

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CGS CIMB	OCBC
ComfortDelGro 60 days after Go-JEK’s soft launch… ■ Go-JEK’s incentives were cut 50%, solidifying CD’s and Grab’s positions in the taxi/ride-hailing industry. It is better to be a taxi or Grab driver, in our view. ■ Our study shows that taxi drivers’ wages on a regular 10-hour workday are higher (3-75%) than those of Grab/Go-JEK drivers. ■ Of our 10% FY19F EPS growth forecast, 5% comes from acquisitions, 4% from public services transport business and 1% from taxi operations. Read More ...	Starhill Global REIT: Beneficiary of Orchard Road revitalisation Starhill Global REIT’s (SGREIT) recent 2QFY19 results came in slightly short of our expectations. DPU declined by 3.4% YoY and 1.7% QoQ to 1.13 S cents. We had expected a sequential uptick in DPU. Operationally, Wisma Atria (retail)’s actual occupancy improved, but this came at the expense of rents. However, tenants’ sales grew 2.9% YoY. Another positive development came from Myer Centre Adelaide, which finally secured a new anchor tenant for its office component. On 30 Jan, STB, URA and NParks jointly announced plans to enhance Orchard Road as a lifestyle destination. While we trim our FY19 and FY20 DPU forecasts by 2.6% and 2.2%, respectively, we also lower our cost of equity assumption by 22 bps to 8.0%. This is due to a more risk-on market sentiment and concrete plans to improve the longer-term viability of Orchard Road which we believe would be beneficial to asset values in the precinct. Our fair value inches up from S$0.74 to S$0.75. Maintain BUY.
MAYBANK KIM ENG	UOB KAYHIAN
Frasers Hospitality Trust (FHT SP) More Than A Value Play DPU in line, rising AUM repositioning potential Our forecasts are unchanged following in-line 1Q19 (to consensus and our estimates) with DPU at SGD1.25cts (down 4.3% YoY, up 3.2% QoQ), largely on the back of a stronger UK performance (gross operating revenue/profit up 9.3% YoY/ 8.1% YoY). Our DDM-based TP of SGD0.80 is unchanged (COE: 7.6%, LTG: 2.0%). FHT remains undemanding on valuations both against history and peers at 0.8x FY19E P/B. And we see catalysts emerging from a potential portfolio reshuffle; a Sofitel Wentworth Sydney divestment could reap SGD110-150m in gains, to fund further opportunities in Europe, supported by its low 34.4% gearing and sponsor’s growing AUM. BUY. Read More ...	Sembcorp Industries (SCI SP) 4Q18 Earnings Preview: Reflections Of A Slow Quarter SCI is expected to report 2018 net profit of S$321m and 4Q18 core net profit of S$77m. We expect most geographies to be stable, barring India and the UK. The former is expected to report a quarterly loss, while the latter is expected to report strong earnings on the back of UKPR. Divestments in 2018 totalled S$194m, or 39% of the S$500m divestment target over two years. We trim 2018 net profit forecast by 2% on lower Marine contributions. Maintain BUY; target price: S$3.20. Read More ...

Check out our compilation of Target Prices

Counter Name	Last	Change
AEM Holdings	2.370	0.030
Best World	2.460	-
Boustead Singapore	0.945	-0.015
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	0.005
ComfortDelGro	1.480	-
Delfi Limited	0.895	-
Food Empire	1.260	-
Fortress Minerals	0.300	-0.005
Geo Energy Res	0.305	-0.005
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.140	0.020
InnoTek	0.550	0.030
ISDN Holdings	0.305	-0.005
ISOTeam	0.044	0.001
IX Biopharma	0.042	0.001
KSH Holdings	0.250	-
Leader Env	0.047	-0.004
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.139	-0.001
Nordic Group	0.305	-0.005
Oxley Holdings	0.088	-0.001
REX International	0.133	-0.003
Riverstone	0.795	-0.020
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-0.025
Sunpower Group	0.210	0.005
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-0.005
Wilmar Intl	3.470	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

2.370

0.030

Best World

2.460

Boustead Singapore

0.945

-0.015

Broadway Ind