Excerpts from CGS-CIMB report.

Yangzijiang Shipbuilding (ADD, TP: S$1.45)
● YZJ expects its order for 2019 to be close to US$2bn, although it has only done US$696m YTD. We believe there could be some new contracts in the pipeline.

RenYuanLin 28.4.2016Ren Yuan Lin is expected to return soon to his Chairman job at YZJ.
NextInsight file photo
We keep our US$1bn order forecast intact for FY19. Order book stands at US$3.18bn for 83 vessels.

● There is newsflow of M&As among the Singapore yards, so interest could return to YZJ as it is trading at a significant discount despite firmer earnings and stronger balance sheet.

● It is trading close to 5-year trough of 0.7x CY19F P/BV, a discount to Singapore yards (1.2x). Catalysts are stronger orders and the chairman returning to duty.



AEM Holdings Ltd (ADD, TP: S$2.12)
lokewaisan8.17bExecutive Chairman Loke Wai San. NextInsight file photo● Positive earnings momentum into 1H20; our channel checks suggest that AEM has leased new factory space to cope with stronger demand.

● We expect more orders from Intel as it tries to catch up with competition.

● New product launch (hybrid Test Handler) could help drive FY20 earnings.

● Key risk is mainly 97% revenue dependence on Intel.



CSE Global (ADD, TP: S$0.73)
LimBoonKheng2.19MD Lim Boon Kheng. NextInsight file photo ● We are excited about CSE’s earnings growth potential, given its padded order backlog of at least S$300m by end-2020 (end 3Q20: S$232.6m).

● Though acquisitions within the year may have swung the balance sheet to a net debt position, we are still positive on them as they have broadened CSE’s regional reach or have been earnings accretive.

● The stock trades at FY20F P/E of 10.4x, below its 5-year average. Re-rating catalysts/downside risks include higher- /lower than-expected order wins and GP margins.


Full report on small-cap and big-cap picks is here.


Share Prices

Counter NameLastChange
AEM Holdings4.340-0.100
Avi-Tech Electronics0.300-
Broadway Ind0.161-0.001
China Sunsine0.460-0.005
DISA0.004-
Food Empire0.5450.010
Fortress Minerals0.350-
Geo Energy Res0.4400.005
Golden Energy0.5300.015
GSS Energy0.057-0.002
InnoTek0.4400.005
ISDN Holdings0.515-0.005
ISOTeam0.090-
IX Biopharma0.168-0.001
Jiutian Chemical0.0960.002
KSH Holdings0.355-
Leader Env0.0620.002
Medtecs Intl0.187-
Meta Health0.031-
Moya Asia0.064-0.001
Nordic Group0.415-0.010
Oxley Holdings0.1860.001
REX International0.2450.005
Riverstone0.8300.030
Sinostar PEC0.220-
Southern Alliance Mining0.645-0.005
Straco Corp.0.390-
Sunpower Group0.380-
The Trendlines0.094-
Totm Technologies0.1280.001
UG Healthcare0.210-
Uni-Asia Group1.0800.010
Wilmar Intl4.1500.060
Yangzijiang Shipbldg0.9500.015

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 447 guests and no members online