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CGS CIMB |
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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.
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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.
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| CGS CIMB | MAYBANK KIM ENG |
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ComfortDelGro Taxi disrupted
■ 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.
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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.
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Check out our compilation of Target Prices
