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UOB KAYHIAN |
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Silverlake Axis (SILV SP) Outlook Dims On Headwinds; Stay NEUTRAL
Maintain NEUTRAL, new DCF-based TP of SGD0.24 from SGD0.26, 4% downside with c.3% FY20F (Jun) yield. Silverlake Axis reported a weaker 3QFY20, below our estimate. It also guided for a weaker 4Q20, due to the Movement Control Order (MCO) in Malaysia. Large deals continue to be a challenge to close, with many delayed by MCO measures or economic uncertainties. As a result, we cut FY20F and FY21F EPS by 6% and 10%, to reflect lesser licensing and project service revenue.
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Sunpower Group (SPWG SP) 1Q20: Soft Results Due To COVID-19 Outbreak; Expect A Strong Recovery In 2Q20
Sunpower posted lacklustre results for 1Q20, on the back of temporary closure of its plants due to the COVID-19 outbreak. 1Q20 PATMI came in at Rmb51.1m, forming 13.7% of our full-year forecasts. The 15.6% yoy drop in PATMI was largely caused by a drop in revenue from both the GI and M&S segmenta. Looking forward, resumption of full production and ramp-up of existing GI projects will continue to drive earnings growth from 2Q20 onwards. Maintain BUY with SOTP-based target price of S$0.88.
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UOB KAYHIAN |
CGS CIMB |
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ComfortDelGro Corporation (CD SP) Priced For Recovery; Upgrade To BUY
While a pick-up in commuter numbers is likely to be gradual, CD’s share price appears to have largely priced in the weakness in transportation services due to stay-home measures, from both its taxi segment as well as from rail ridership. If there are further transport disruptions, downside is fairly limited. 1H20 will see lessthan-stellar performance, but the road ahead is likely to be more positive. Upgrade to BUY with a PE-based target price of S$1.82 (previously S$2.15).
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AEM Holdings Ltd Progress in diversification
■ UTAC and AEM have announced a partnership to develop test solutions for complementary metal-oxide-semiconductor (CMOS) image sensors. ■ We view the partnership as being incrementally positive for AEM’s efforts to diversify its revenue stream. ■ Reiterate Add and TP of S$3.58.
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Check out our compilation of Target Prices