| MAYBANK KIM ENG |
PHILLIP SECURITIES |
|
Japfa Ltd (JAP SP) Chicken Run
ID poultry price concern likely overblown; BUY Indonesia poultry stocks fell 17-24% over the past fortnight on news of broiler prices declining further in March, triggering fears of a repeat of the 2014 industry oversupply situation. JAP’s management believes the broiler price correction has more to do with seasonal weak demand than oversupply; similar price movements in prior years would lead us to concur. Meanwhile a more detailed look at African Swine Flu (ASF) scenarios suggests a lower potential impact than earlier anticipated.
|
Singapore Banking Monthly Mortgage repricing to offset loan growth deceleration
SINGAPORE | BANKING & FINANCE | UPDATE February’s mortgage loan growth continues to decelerate to 1.2% YoY, dipping below last month’s 17-year low of 1.6% YoY. February’s total loan growth remained flat at 3.3% YoY, held up by building and construction loans (+12.7% YoY). February’s domestic deposits rose 6.3% YoY, boosted by fixed deposit growth of 18.9% YoY, the fastest in eleven years. CASA contracted 1.0%. March’s 3-month SIBOR and SOR dip modestly by 0.8bp and 8.1bps to 1.944% and 1.933% respectively. Maintain OVERWEIGHT for the Singapore Banking Sector
|
| OCBC | MAYBANK KIM ENG |
|
Singapore Residential Sector: A Small Downward Trickle
URA’s flash estimate for the private residential property price index (PPI) showed a dip of 0.6% on a QoQ basis for 1Q19. This was the second consecutive QoQ dip (4Q18: -0.1%). Within the non-landed segment, the Core Central Region (CCR) fared the worst, with a deterioration of 2.9%. For the Rest of Central Region (RCR) and the Outside Central Region (OCR), prices came in at -0.2% and 0.0% QoQ, respectively. Meanwhile, on the public housing front, HDB’s flash estimate for the 1Q19 Resale Price Index slipped 0.3% QoQ. URA recently closed the tender for two sites at Middle Road and Sims Drive. We believe the top bids came in at more rational levels. We keep our private residential price growth forecast of -3% to 2% for 2019, but highlight that the full-year figure is likely to come in at the lower-end of our projection.
|
China Aviation Oil Jetting stably amidst global volatility
■ CAO saw an all-time high net profit of US$93.9m in CY18 (vs. our US$92.4m forecast) despite jet fuel markets being largely in backwardation mode. ■ Our FY19-21F net profit CAGR of 3.3% is on the back of steady growth in both GP and associates, despite global uncertainties. ■ Maintain Add call with a lower TP of S$1.70, now on 11x P/E, as we roll over to FY20F valuations. Net cash position and dividend yield are main positives.
|
Check out our compilation of Target Prices
