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UOB KH |
| Venture (VMS SP) Tempering expectations; LT growth drivers intact Signs of incremental headwinds; LT drivers intact Texas Instruments (TXN US, Not Rated) is observing broad-based weakness across end-markets, including those VMS participates in, due to the trade war. We see this as a short term headwind on VMS’ volumes and lower our FY19-21E EPS by 2-8%. ROE-g/COE-g TP is largely unchanged at SGD18.85, now based on 2.1x FY20E P/B from FY19E previously. As i) LT growth drivers are intact; ii) this headwind appears priced in; and iii) 5% dividend yields are well supported by FCF, we remain BUYers on dips. |
Oxley Holdings (OHL SP) Impeccable Track Record Oxley trades at an attractive 52% discount to our S$0.72 RNAV (0.9x P/B), from undue “overhang” of cooling measures and gearing concerns. Much less appreciated is the group’s stellar Singapore residential sales (about 63% sold) and S$3.9b unbilled sales (vs S$3.1b net debt). The group also had a demonstrable 22% ROE (peer average: 7%) in 2014-18, enabled by its fast turnaround, astute landbanking and leverage. Re-initiate coverage with BUY and S$0.50 target price, pegged at a 30% discount to RNAV. Read more... |
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UOB KH |
UOB KH |
| Eagle Hospitality Trust (EAGLEHT SP) Hearing From The Horse’s Mouth We expect positive remarks from the City of Long Beach to allay unfounded fears. The City of Long Beach has clarified that the letter dated 1 Oct 19 is not a notification of default. The estimated cost of works required is US$7m, which could be covered by existing capital reserves. In a written response to UC, the City states that it “values the continued progress UC has made to improve the structural integrity of the historic Queen Mary”. The sell-off last Friday was irrational. Maintain BUY and target price at US$1.02. Read more... |
Wilmar International (WIL SP) 3Q19 Results Preview: Tropical Oils Still The Star; Oilseeds & Grains Margin To Improve qoq We are expecting 3Q19 net profit of US$390m-410m, vs 3Q18’s US$435m and 2Q19’s US$177m. 3Q is seasonally the best earnings quarter, driven by festive demand and the start of sugar crushing season. For 3Q19, tropical oils will continue to be the star performer, driven by resilient margins, while oilseeds & grains is expected to see better earnings qoq on the back of positive soybean crushing margins and higher consumer packs sales. Maintain BUY. Target price: S$4.40. Read more... |
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