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PHILLIP SECURITIES |
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Wilmar International (WIL SP) Better 2H19 Despite Soft Commodity Prices
We remain positive on Wilmar and expect better earnings in 2H19. Contributions from oilseeds & grains should improve as China’s soybean crushing margins have improved and we see a rise in festive sales volume from the food products division. The improvement in tropical oils’ PBT margins is expected to hold in 2H19 as well. With the sugar crushing season having started in June, we foresee positive contribution vs losses in 1H19. Maintain BUY. Target price: S$4.40.
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Singapore REITs Monthly Monthly Tracker: September 2019 SINGAPORE | REAL ESTATE (REIT) | UPDATE
FTSE S-REIT index return gained 0.4% MTD and 21.7% YTD. Strongest gains were from the Commercial sector (+2.8% MTD) and weakest showing at the Retail (1.4% MTD). Performance in September: Best – Keppel DC REIT (+16.3%), Worst – Soilbuild REIT (-7.6%) Sector yield spread of 263bps is -1.3 standard deviation (s.d.) over the benchmark 10- year SGS (10YSGS) yield. 3-month SOR was flat at 1.75% at 20 September 2019 versus 1.74% last month. Elevated P/NAVs expected to persist in the lower interest rate environment. Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Hospitality.
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CGS CIMB |
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PNE Industries Ltd Low leverage, strong dividend track record
■ PNE is a contract manufacturer specialising in electronic controllers and exit lighting. ■ The group has been in a net cash position with zero debt for the past five years. PNE has also been paying dividends during this period. ■ PNE currently trades at a historical FY9/18A P/BV of 0.79x and a historical dividend yield of 7.89%.
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Check out our compilation of Target Prices
