ANALYSTS SAY: Buy, Sell, Hold (28 Feb '19)

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UOB KAYHIAN	MAYBANK KIM ENG
Golden Agri-Resources (GGR SP) 2018: Poor Results GGR reported core net losses of US$24m for 4Q18 and US$52m for 2018, below expectations. The full-year loss was mainly due to higher interest expense, losses from a JV and a higher effective tax rate. EBITDA was still positive. Despite lower FFB production growth, 2019 could be a better year due to firmer selling prices and higher downstream sales volume. Maintain SELL. Target price: S$0.21. Read More ...	Singapore REITs Easing Into Recovery Mode DPU recovery: prefer large-caps and laggards A benign interest rate regime has helped S-REITs outperform the broader market YTD; the sector dividend yield-spread is at 2.7%, not excessive against peers and history, in our view. We stay positive on fundamentals, with three catalysts supporting valuations into the coming quarters: (1) DPU recovery after stable Dec-2018 operational results, led by a positive demand outlook, especially for hospitality; (2) traction on capital recycling initiatives; acquisition momentum thus favouring REITs with higher debt headroom; and (3) upside risk to DPUs against the backdrop of a slower rate hike cycle. Our top picks remain BUY rated AREIT, CDLHT and FCT. They trade at 5.7-6.1% FY19 div yield versus the sector’s 4.9%, and are set to deliver 3.6-6.0% DPU CAGR, against the sector’s 0.5-3.5%. Short-term pair trade idea: Long AREIT and Short CMT. Read More ...
OCBC	CGS CIMB
OUE LIMITED: They sell; we buy OUE’s FY18 revenue fell 14.7% to S$642.9m, largely due to lower contribution from the group’s property development arm (68.5% drop in revenue). PATMI saw a drop of 89.4% to S$10.0m, on the back of one-offs. We deem this set of results to be broadly under expectations. The group has proposed a special dividend of 11 S-cents. Given that Oakwood Premier has obtained its hotel licence in Jan 19, we believe that a possible divestment to OUE Hospitality Trust could be on the cards this year. In downtown Los Angeles, OUE is looking to divest of its US Bank Tower, while also actively looking for an opportune time to cash in on some of its investments to help par down debt. Taken together, we believe these divestments will help to narrow the significant discount that OUE trades at (Bloomberg forward P/B of 0.37x). We roll forward our valuations, and raise our fair value slightly from S$2.25 to S$2.32.	Keppel Corporation Building up O&M fund portfolio ■ Keppel Capital is subscribing for 30% of Gimi FLNG from Golar and capping its investment at US$250m. The FLNG has a 20-year charter with BP. ■ We think Keppel O&M is likely to receive some top-up in construction contract from this deal in addition to the c.US$755m conversion contract. ■ This, and the recent Grupo R rig sale-and-leaseback arrangement, could be the first few assets to be injected into an offshore infrastructure fund to come. Read More ...

Check out our compilation of Target Prices

Counter Name	Last	Change
AEM Holdings	1.870	-0.010
Best World	2.480	-
Boustead Singapore	0.955	-
Broadway Ind	0.140	0.006
China Aviation Oil (S)	0.875	-
China Sunsine	0.395	-
ComfortDelGro	1.410	-
Delfi Limited	0.870	-0.010
Food Empire	1.140	0.010
Fortress Minerals	0.310	-
Geo Energy Res	0.300	0.005
Hong Leong Finance	2.440	0.010
Hongkong Land (USD)	3.410	0.010
InnoTek	0.505	0.005
ISDN Holdings	0.305	-
ISOTeam	0.047	-0.001
IX Biopharma	0.043	-
KSH Holdings	0.240	-0.010
Leader Env	0.049	-
Ley Choon	0.056	0.004
Marco Polo Marine	0.072	0.001
Mermaid Maritime	0.133	-0.019
Nordic Group	0.310	-
Oxley Holdings	0.089	0.002
REX International	0.124	-0.002
Riverstone	0.915	-0.015
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	-
Sunpower Group	0.240	0.005
The Trendlines	0.063	-0.001
Totm Technologies	0.020	-
Uni-Asia Group	0.840	0.010
Wilmar Intl	3.160	-0.020
Yangzijiang Shipbldg	1.780	0.010

Counter Name

Last

Change

AEM Holdings

1.870

-0.010

Best World

2.480

Boustead Singapore

0.955

Broadway Ind

0.140