| RHB |
RHB |
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Food Empire (FEH SP) Resilient Against COVID-19; Maintain BUY
Maintain BUY, TP rises to SGD0.88 from SGD0.83, 19% upside with 3% yield. Food Empire’s 4Q19 results are in line with our estimate. 4Q19 PATMI of USD5.0m brought FY19 PATMI to USD26.1m. Excluding FX gains, FY19 core PATMI would be USD25.5m. Amidst the COVID-19 outbreak, we note that Food Empire’s market exposure to China is small, neither does it depend on China for raw material supplies. We expect sales to be relatively resilient against this epidemic.
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BreadTalk (BREAD SP) Time To Cash Out And Accept Offer
Accept SGD0.77 cash offer, 19% upside. A conditional cash offer of SGD0.77/share was made by George Quek, Katherine Lee and Minor Group to delist BreadTalk. Shareholders should accept it, as the offer price is 15% above our previous TP of SGD0.67. Moreover, BreadTalk is undergoing major challenges across key markets, and reported losses for FY19. A quick turnaround is unlikely, with the COVID-19 outbreak further exacerbating the situation. The offer presents a good opportunity for shareholders to realise their investments.
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| CGS CIMB | CGS CIMB |
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Penguin Int'l Ltd 4Q19: Solid growth
■ FY19 core net profit of S$18.4m (+35.3% yoy) was in-line at 101%/98% of our/consensus FY19F (S$18.1m/S$18.8m). ■ PBS has a positive outlook for FY20F, for both its shipbuilding and crewboat chartering activities. We lift FY20-21F EPS by 7-7.3%. ■ Reiterate Add with a higher TP, still based on 1x FY20F P/BV. Robust balance sheet and niche vessel sales are its forte.
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UMS Holdings Ltd Earnings growth set to resume in FY20F
■ We deem FY19 net profit at 97%/96% of our/consensus’ expectations to be in-line. ■ Final DPS of 2Scts was in line with our expectations but the 0.5Scts special dividend was a pleasant surprise. ■ Covid-19 is a risk and UMS is working closely with its customers to mitigate the impact. Upgrade to Add from Hold on stronger earnings expectations.
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