|UOB KAYHIAN||PHILLIP SECURITIES|
Yangzijiang Shipbuilding (Holdings) (YZJSGD SP)
Attractive Privatisation Candidate
YZJ is a deep-value stock as its potential net cash is greater than its current market capitalisation. In effect, a privatisation could see an investor walking away with the company’s four world-class shipyards for free. We also point out that YZJ recently won US$183m of new orders, bringing its total order wins ytd to US$714m - this is greater than Keppel’s and Sembcorp Marine’s ytd combined order wins. Maintain BUY. Target price: S$1.17.
Charting a new course
SINGAPORE | ENERGY | INITIATION
SCI shareholders could realise a total of $2.72 per share.
IPO of Sembcorp Energy India Limited (SEIL) to crystalise value of SCI’s India business unit, which we estimate to have a value of about about INR98bn or S$1.8bn.
Potential positive re-rating of SCI following the demerger as profitability and return on equity improves in FY21e.
Initiate with a BUY recommendation and a target price of $2.72.
• Expect iFAST to grow faster than the industry, riding on its scalable business model and expanded product range
• Pace of digital adoption increases; AUA growth assumption raised to 15%
• FY20F/FY21F earnings upped by 8%/11%
• Maintain BUY, TP raised to S$2.60. Catalysts: award of MPFA project, digital bank licence; China turnaround
Check out our compilation of Target Prices