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UOB KAYHIAN |
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Singapore Medical Group (SMG SP) 1H19 Profit In Line; Reiterate BUY
Maintain BUY with unchanged DCF-derived TP of SGD0.48, 30% upside. 1H19 revenue of SGD44.6m (+9.4% YoY) was mainly contributed by the acquisition of Pheniks in Apr 2018. 2Q19 PATMI was at SGD3.5m (+3.5% YoY), bringing 1H19 PATMI to SGD6.8m (-1.1% YoY), accounting for 54% of our forecasts. We believe the positive momentum will likely sustain. The stock is trading at 14x P/E vs peers’ 20x, offering an attractive upside potential.
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Koufu Group (KOUFU SP) 2Q19: Gaining Growth Momentum And Positive Growth Pipeline
2Q19 net profit growth of 16% was in line, with 1H19 meeting 48% of our full-year forecast, driven by the reopening of its Marina Bay Sands food court and growth from existing and new outlets. The growth outlook remains robust as Koufu has secured four more new leases for food courts and looks to further expand its tea business and Elemen restaurants. Maintain BUY and target price of S$0.95. Koufu is undervalued at 10.5x 2019F ex-cash PE, vs peers’ average of 22.7x 2019F PE.
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UOB KAYHIAN |
RHB |
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BRC Asia (BRC SP) 3QFY19: Solid Earnings With Robust Prospects
BRC reported 3QFY19 net profit of S$9.1m (+70.6% qoq), in line with expectations. Operating margins have improved and the group looks set to reap the benefits from its acquisition of Lee Metal. As the market leader in construction steel products, we think that BRC is a strong proxy for the upcycle in the industry and will benefit from the slew of mega projects lined up in Singapore. Maintain BUY and target price of S$1.75.
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EC World REIT (ECWREIT SP) Another Stable Quarter Barring FX Impact; BUY
Keep BUY with new SGD 0.82 TP from SGD 0.85, 12% upside plus 9% yield. 2Q results met: Earnings outlook remained stable with minimal uncertainty post master lease extensions, and loan refinancing. Its latest acquisition, Fuzhou E-Commerce’s (FEC) logistic asset should contribute positively from 3Q19. The potential impact from the rising US-China trade tensions on EC World REIT’s assets are minimal, as they cater largely to the domestic market. However, a prolonged CNY weakness should have a negative impact on DPU.
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