| MAYBANK KIM ENG |
RHB |
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Sheng Siong Group (SSG SP) Battle of the Brands
Housebrand price competition ignited On 18 Mar 2019, FairPrice announced it would hold the prices of 100 housebrands for 15 months, till 30 Jun 2020. Of these 100 products, more than 50 items’ prices have already been slashed. We evaluate the rising competition and relative standing amongst the supermarket players by comparing sample baskets that consists of predominantly housebrands. The results suggest a possible scenario of basket values shrinking over time, thereby supporting our SELL call, with DCF-based TP of SGD0.95 unchanged (7.8% WACC, 1% LTG).
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Silverlake Axis (SILV SP) Solid In 2019; Keep BUY
Keep BUY on this country pick, SGD0.65 TP offers 18% upside plus 4% FY19F yield. Silverlake Axis’ 2QFY19 revenue/PATMI surged 28%/84% YoY, mainly on wider margins stemming from licensing revenue jumping 98% YoY as it continued to implement a major Malaysian contract. This outperformance should continue into the rest of 2HFY19, which may lead to stellar results again, in 3QFY19. We expect 3QFY19 to be upbeat, on continued margin improvement and a positive PATMI uptrend.
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| CGS CIMB | DBS VICKERS |
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Property Devt & Invt Sustainable transformation
■ URA's Draft Master Plan 2019: towards a sustainable and liveable Singapore ■ Higher plot ratio, commercial property conversion into mixed uses could further unlock value ■ Maintain Overweight, with City Dev, UOL and Capitaland as top picks
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Singapore Property
Remake, Reposition & Refurbish • Draft 2019 Masterplan gives a lift to commercial landlords with enhanced plot ratios in CBD and Orchard; key beneficiary is SGREIT • New regional economic centers with focus on Greater Southern Waterfront and remaking of Paya Lebar Air Base • New residential supply planned in Downtown, Marina Bay, and fringe areas to promote living closer to work places
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Check out our compilation of Target Prices
