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CGS CIMB |
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Venture Corp (VMS SP) Awaiting Confirmation On Outlook; UNDER REVIEW
We place this stock UNDER REVIEW, while we await confirmation on the company’s outlook. Venture is due to report its 2Q20 results on 7 Aug, and we expect its performance to be relatively weak, due to the closure of its factories in Malaysia caused by the Movement Control Order (MCO), as well as social distancing regulations which slowed down production in Singapore. However, our channel checks indicate that the most of its factories have since ramped up production, and orders remain strong.
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AEM Holdings Ltd AEM ups FY20F revenue guidance again
■ AEM’s 1H20 net profit was above our expectation at 64% of our full-year forecast. ■ The company has raised FY20F revenue guidance again to S$460m-480m versus its May guidance of S$430m-445m. ■ We reiterate our Add call with a higher TP as we factor in the new guidance.
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UOB KAYHIAN |
PHILLIP SECURITIES |
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Alpha Picks: Strong Beat; Adding In Thai Beverage
Our portfolio rose 5.0% mom in Jul 20, significantly outperforming the FSSTI’s decline of 2.3% mom, mainly due to Riverstone, CSE Global and MINT. For Aug 20, we take profit on MINT and add in Thai Beverage.
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KOUFU GROUP LIMITED Food as fuel for growth
SINGAPORE | CONSUMER | INITIATION New integrated facility (IF) operational in 3Q20 will consolidate and expand Group’s central kitchen capacity boosting overall operational efficiency. Potential special dividend from the sale of its existing central kitchen property when they move into their new IF. We like Koufu for their strong cash flow generation, defensive balance sheet and high ROE of 20.6% and 22.3% for FY21e and FY22e respectively. Initiate with a BUY recommendation and a target price of $0.80.
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