| UOB KAYHIAN |
UOB KAYHIAN |
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Penguin International (PBS SP) 1H20: Double Whammy From COVID-19 Epidemic And Depressed Oil Prices
Penguin reported weak results on the back of strong headwinds. 1H20 revenue and net profit formed 38.7% and 30.1% of our respective full-year forecasts. Both shipbuilding and chartering segments suffered drops in revenue due to depressed oil prices along with weak market sentiment caused by the ongoing COVID-19 pandemic. We cut our 2020 EPS by 34.5% and our PE-based target price by 30% to S$0.42. Downgrade to HOLD as we expect revenue growth to stay flat. Entry price: S$0.34.
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Offshore & Marine – Singapore A Fork In The Road For SCI And SMM
Given the successful EGM held yesterday by both SCI and SMM, with all three interconditional resolutions easily passed, the companies will demerge by the year-end at the latest. In our view, the demerger is a positive for SCI in both the near and the long term, while SMM’s share price may face selling pressure in the near term post the inspecie distribution of its shares to SCI shareholders. Maintain BUY on SCI but downgrade SMM to SELL. Maintain MARKET WEIGHT.
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CGS CIMB |
CGS CIMB |
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Frasers Property Limited Mixed operational performance
■ Occupancy performance is mixed across asset class and geography. ■ Good take up for China residential launch; Singapore pipeline replenished. ■ Reiterate Add, with an unchanged TP of S$1.70.
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SingTel 1QFY21F earnings likely fell mid-teens yoy
■ 1QFY3/21F core net profit may have fallen 15-17% yoy and 17-19% qoq to S$480m-490m, based on our estimates. ■ Possible key variances: big drop in Telkomsel’s earnings, slow improvement in Bharti’s losses and heavier-than-expected impact from Covid-19. ■ Reiterate Add with an unchanged SOP-based target price of S$3.40.
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Check out our compilation of Target Prices
