ANALYSTS SAY: Buy, Sell, Hold (13 May)

CGS CIMB

Golden Agri-Resources
Expect a weaker 2Q due to export ban

■ GGR’s 1Q22 core net profit was above due to higher CPO price achieved.
■ We are concerned that 2Q22F earnings may weaken due to the ongoing palm oil export ban, which will lead to higher logistic and storage costs.
■ Downgrade to Hold from Add, with a lower TP of S$0.30, as CPO price could trend lower in 2H22F on rising output while operating costs could rise.

Read More ...

Kimly Group
Tailwinds subsiding

■ We see tailwinds subsiding due to Singapore’s significantly-relaxed Covid-19 measures since Apr. Workers return to office could impact Kimly’s footfall.
■ We also expect further margin compression in 2HFY9/22F arising from higher raw material and staff costs. We lower our FY22-24F EPS by 9-17%.
■ Downgrade to Hold with a lower TP of S$0.41, now pegged to 15.4x CY23F P/E (vs. 16.8x previously), based on -0.5 s.d. from 5-year historical mean.

Read More ...

CGS CIMB

UOB KAYHIAN

Q&M Dental Group
Managing post-Covid growth expectations

■ 1Q22 revenue/net profit missed our expectations at 21.0%/19.4% of our FY22F estimates on lower-than-expected dental core revenue.
■ Interim dividend of 0.4 Scts was 60% lower yoy, representing a payout ratio of 58%, below our 80% payout ratio expectation for FY22F.
■ Reiterate Add with lower TP of S$0.73; cut FY22F/23F/24F EPS by 12%/8%/5% as we temper assumptions for revenue intensity per dental chair

Read More ...

Bumitama Agri (BAL SP)
1Q22: Results Above Expectations

BAL’s 1Q22 results beat our expectations on higher PK contributions. Management guided no significant impact from the export ban for now as the announcement was made right before the Lebaran holiday. Having said that, we expect 2Q22 earnings growth to be muted, mainly dragged by lower sales volume and net CPO ASP (impact from Indonesia’s export ban). Maintain BUY with a higher target price of S$0.93. 

Read More ...