| UOB KAYHIAN | MAYBANK KIM ENG |
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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) More Upside For The Containership Market
The bulk of YZJ’s orderbook growth in the past 12 months has come from containerships totalling 81 vessels (or 70% of its orders) worth US$5.42b. We believe this order momentum can be sustained as the number of vessels on order globally is at a 15-year low. Also, there is a high level of scrapping of small- and medium-sized container vessels with replacement likely for the latter segment. YZJ also has exposure to dual-fuel LNG containerships. Maintain BUY. Target price: S$1.76.
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Q&M Dental Group (QNM SP) A reason to smile Strong 1Q21 well on track; BUY
1Q21 headline net profit soared 618% YoY to SGD9.4m, partly boosted by disposal gains of SGD4.3m from sale of its remaining 12.2% stake in Aidite. Excluding the one-off items, core earnings jumped by 198% to SGD6.8m on total revenue of SGD43.8m (+47% YoY), largely in line with MKE/consensus expectations. Post results briefing, we stay positive on Q&M on the back of robust organic growth with upside potential from better-than-expected testing business (versus our profit assumption of SGD8m or 25.8% of underlying PATMI).
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MAYBANK KIM ENG |
OCBC |
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Genting Singapore (GENS SP) Konichiwa Yokohama?
Maintain HOLD and SGD0.86 TP for now The Japanese integrated resort (IR) liberalisation process is progressing at a rapid clip. Of greatest interest to us is the Yokohama IR Request For Proposal (RFP) process, which we opine GENS has a good chance of winning. We estimate that the Yokohama IR will generate USD2.7b in net profit p.a. and is worth USD5.4b (SGD0.60/shr), which translates into substantial earnings and valuation upside for GENS. Maintain earnings estimates, HOLD call and SGD0.86 DCF-based TP for now.
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Golden Agri-Resources A good start to the year
• 1Q21 turned profitable on stronger CPO prices • Targeting FFB to grow +10% YoY • Recovery in downstream performance Investment thesis Golden-Agri’s (GAR) 1Q21 results came in within our expectations. Its revenue rose 24% YoY to USD2.0b while EBITDA jumped 174% YoY to USD232m on the back of higher CPO prices which increased by 57% YoY to USD1,057 per tonne. As such, PATMI turned from a loss of USD95m in 1Q20 to a gain of USD41m in 1Q21. GAR’s upstream business benefitted from continued recovery in CPO prices. Management raised their FFB production guidance for FY21 from 5% YoY to 10% YoY on favourable weather conditions and improved yields. Sales volume of downstream business was down 4% YoY due to higher inventory as a result of timing of delivery and lower utilisation rate of 80% from 100% in 4Q20 due to seasonality effect. After adjustments, our fair value estimate is raised from SGD0.21 to SGD0.25. |
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