| UOB KAYHIAN |
MAYBANK KIM ENG |
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Raffles Medical Group (RFMD SP) 2018: Slightly Above Expectations; Marginal Gains
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FY19 sales guidance a relief, but expect volatility
Positive sales guidance; Maintain BUY
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| CGS CIMB | RHB |
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Wilmar International Listing of Wilmar China the key re-rating catalyst
■ Wilmar has successfully grown its consumer products business to 30% of FY18 total pretax profit. This will help reduce future earnings volatility. ■ We estimate Wilmar China's market cap could be higher or similar to Wilmar's current market cap, if accorded FY18 P/E of around 17x to 20x. ■ Maintain Add call as current share price has not reflected plans to unlock value of its assets in China via a listing in Shanghai as early as 2H19.
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Aerospace Secures 10-year MRO Contract; Keep BUY
Reiterate BUY with SGD4.10 TP, offering 8% upside and 4% FY19F yield. STE, one of our country’s Top Picks, announced that its Aerospace business signed an agreement to provide aircraft maintenance to a major North American airline company, an existing customer of STE. The contract, valued at USD600m (c.SGD813m), will commence in 2020 and is for a period of 10 years. It will cover a fleet of over 160 wide- and narrow-body aircraft. We continue to maintain that together with contributions from Electronics and improvements in Marine, the ongoing contributions from the Aerospace division will drive a recovery in STE’s profit growth in the near term. We view the likely completion of the MRA Systems acquisition by the end of 1Q19 to be a re-rating catalyst.
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Check out our compilation of Target Prices
