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RHB |
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Riverstone Holdings (RSTON SP) Expect Outperformance Due To Rising ASPs; Raise Target Price By 14.1%
Recently, we had a call with Riverstone’s CEO to get a business update about the company’s performance in 2Q20. We highlight three points made by Riverstone’s CEO: a) demand for healthcare gloves remains robust; b) positive surprise for ASP from new tier pricing; and c) capacity expansion remains on track with the first production line commencing production in Jul 20. We raise our 2020F EPS by 14% and PE-based target price by 14.1% to S$3.60 (based on an unchanged 23.1x 2020F PE). Maintain BUY.
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Avi-Tech Electronics (AVIT SP) Strong 2H20F Expected
Maintain BUY with an unchanged DCF-based SGD0.50 TP, 11% upside with c.6% FY20F (Jun) yield. The semiconductor sector’s slowdown has likely bottomed out, and the company’s quarterly performance should improve ahead. Early this year, Avi-Tech Electronics reported a strong 2Q20, with PATMI surging 46.7% YoY to SGD1.4m. We expect a strong 2H20F and overall estimate FY20 will be a much better year, as earnings likely bottomed out in FY19.
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CGS CIMB |
DBS VICKERS |
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Genting Singapore A longer-term chip
■ We think GENS offers compelling value to longer-term investors - its CY21F EV/EBITDA is still below long-term mean, and it offers 5.1% dividend yield. ■ We reiterate Add, with a higher 12-month TP of S$0.84, now based on 8.5x CY21F EV/EBITDA (7x previously), close to -0.5 s.d. from long-term mean. ■ Given the later-than-expected opening and return of tourists, we cut our FY20- 21F adjusted EBITDA forecasts.
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Singapore REITs The next chapter
• Broadening rally expected in 2H20 as investors’ confidence returns aided by “lower-for-longer” rates. • Employing a rotational strategy amongst the industrial SREITs to capture alpha. • Commercial properties with dominant characteristics set to ride past structural headwinds. • Acquisition momentum to fuel next leg up
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Check out our compilation of Target Prices
