CSE Global (CSE SP)
Maintain BUY, DCF-based TP of SGD0.69, 30% upside plus c.5% yield. CSE Global secured new orders worth SGD230m in 4Q19, bringing the full-year order intake to SGD580m. With a sizeable orderbook of >SGD300m, we expect the company to continue performing well in FY20. We also anticipate FY19 net profit (recurring) to be in line with our SGD24m estimate.
Frasers Property Limited
Boosted by China residential
■ 1QFY9/20 EPS of 4.2 Scts beat our expectations, at 46% of our FY20F.
■ Better China and Singapore residential contributions as well as higher Thailand performance boosted bottomline.
■ We reiterate our Add rating with an unchanged TP of S$2.08, based on a 35% discount to RNAV.
|CGS CIMB||MAYBANK KIM ENG|
■ Earnings decline in FY20F (-3% yoy) is inevitable as taxi operations are likely to be hit by coronavirus, with CD potentially giving out rental rebates.
■ We reiterate Hold but lower TP to S$2.09. CD trades at 15.5x CY21F P/E, below historical average (16x), pricing in some taxi disruptions, in our view.
■ Dividend yield of 4.8% is supported by strong FCF. Downside risk: erosion of taxi margin from shrinking taxi fleet /higher-than expected rebates.
Singapore Semicon Equipment
Milestones on track
Progressing to plan; BUY the dips
We believe our BUY theses for UMS and AEM are progressing well. Lam Research (AMAT’s top competitor) remains optimistic of 2020 prospects – reaffirming our view that UMS is a beneficiary of recovering semiconductor capex in 2020-21. For 2020, Intel reiterated plans to expand capacity by another 25%, and also launch nine 10nm products – positive drivers for AEM, in our view. As we believe our FY20E earnings are currently intact, we see the recent sector sell-off as a reason to accumulate on dips. Our channel checks suggest production at AEM/UMS is so far unaffected by 2019-nCoV. Stay POSITIVE.
Check out our compilation of Target Prices