|
SATS Ltd (S$2.94, up 2 cents) announced that its shareholders voted to approve the proposed acquisition of Worldwide Flight Services (WFS) at an Extraordinary General Meeting (EGM) which was held in person and via electronic means on 18-Jan-23. 96.80% of the total number of votes were in favour of the resolution to approve the transaction. Voting at the EGM was conducted by poll. Sats’ acquisition of WFS is expected to cost the company S$1.8 billion.
At $2.94, market cap of SATS Ltd is S$3,305mln and current P/B is 2.1x. It is currently loss-making and does not pay dividends. According to Bloomberg consensus, there are four buys, one sell and three hold recommendations on the stock while the average of the various analysts’ target price on SATS Ltd is $3.57, representing a potential upside of 21%.
|
Tiong Woon (TWC) / Sin Heng: The Straits Times recently reported that construction firms can now tap a $4 million grant to outfit their lorry cranes with technology that prevents them from being overloaded or toppling. This comes after the number of crane-related dangerous incidents nearly quadrupled to 15 cases in 2022, contributing to six of the 46 workplace fatalities that year
Accordingly, we think crane companies such as TWC ($0.47, down 1 cent) and Sin Heng ($0.48, unchanged) should benefit from this in 2 ways. Firstly, the listed local crane players have access to grants to improve safety and secondly, the listing status of TWC and Sin Heng should give them a further edge over other private companies when it comes to project biddings, given the latest emphasis on safety.
|
|
Ranhill Utilities (RAHH MK)
Tariff hike materialises
Finally in place
The implementation of the long-overdue tariff hike for the non-domestic segment is an important catalyst, and restores some degree of financial sustainability to Ranhill and the industry. The next step in the regulatory reform journey would be a more rigorous adherence to the tariff framework (like electricity and gas utilities). Reiterate BUY with an unchanged MYR0.60 SOP-based TP.
Read More ...
|
Com7 PCL (COM7 TB)
Accessories and insurance represent earnings upside
FY23E profit growth of 25% may have some upside
We forecast net profit growth of 25.0% in FY23E on the back of 22.0% revenue growth. Strong sales of house-branded accessories imply potential upside to FY23E gross margin of 13.4% while insurance business offers new revenue sources and a cost-saving opportunity. We reiterate our BUY call on COM7 with the same DCF-based TP of THB40.30 (7.5% WACC, 3.0% TG). Our BUY is supported by a strong earnings outlook for 1Q23E and FY23E.
Read More ...
|
|
Sheng Siong Group (SSG SP)
Staying Defensive Amid Inflation And GST Hike
As the Singapore government increases the GST rate from 7% to 9% in two stages, we believe SSG will continue to enjoy steady demand with changing consumer dining habits. This should offset the reduced demand from the easing of COVID-19 restrictions. SSG’s consistent growth in gross margin attests to its ability to pass on cost increases and its favourable sales mix. Maintain BUY and target price of S$1.91.
Read More ...
|
TIME dotCom (TDC MK)
Growth Remains A Key Focus In The Near Term
TIME will focus on growing its core business, including capturing retail and data centre opportunities, in the near term. This will inevitably replenish the lost revenue from the sale of its 70% stake in AIMS Data Centre. We remain positive on the stock. We expect management to deliver commendable three-year earnings CAGR of 10% and a lush 11% special dividend for 2023. Maintain BUY with a DCF-based target price of RM6.40
Read More ...
|
