Daily Morning Note – 1 March 2019

WEEKLY MARKET OUTLOOK WEBINAR

Register HERE for MONDAY’s 11.15am webinar.

Archived webinars available.

YOUR PHILLIP SUMMARY

Shares in Asia were set to see opening gains on Friday after a data release overnight showed strong fourth quarter economic growth in the U.S.

Stocks slipped on Thursday as stronger-than-expected economic data were offset by fruitless talks between President Donald Trump and North Korean leader Kim Jong Un.

Source: CNBC


RESEARCH REPORT

CNMC Goldmine Holdings Limited – A production turnaround

Recommendation: BUY, Last Closing Price: S$0.225

Target Price: S$0.31, Analyst: Chen Guangzhi

– CIL plant should support our FY19e production growth of 18%.

– Both production and revenue reached a record high in FY18.

– The performance will be better in FY19 because the CIL plant will deliver a full year
production amid a bullish outlook of the gold price.

Asian Pay Television Trust – Sustainable dividends

Recommendation: Accumulate (Maintained), Last Close Price: S$0.130

Target Price: S$0.140, Analyst: Paul Chew

– Revenue and EBITDA were within expectations. PATMI was below due to the amortisation of
deferred arrangement fees

– Number of cable TV subscribers churning out in 4Q18 more than tripled on QoQ basis to
7,000

– DPU of 1.2 cents in FY19e/20e will be sustainable and without further leverage

– Despite the attractive yield of 9%, there are 2 operational challenges ahead:
– Core cable TV business still sliding as both ARPU and subscribers are declining QoQ. There is a
lack of visibility of a trough; (ii) While broadband enjoys positive subscriber momentum,
revenues are virtually flat due to the large cut in ARPU. We cut our target price to S$0.14
(previously S$0.17). Taiwanese telecommunication peers are valued at a dividend yield of
around 5% and EV/EBITDA of 11x. We are placing a 10 to 40% discount to these valuations
due to the higher gearing at APTT.

US Strategy: 4Q18 Quarterly Earnings Report

Analyst: Edmund Xue

– 69% of Top 100 U.S. stocks beat earnings expectations

– Sectors that exceeded earnings expectations the most were energy, consumer discretionary,
and healthcare. The worst were consumer staples, financials and utilities.

– Revenue growth is declining for most of the sectors except communication services,
consumer staples, industrials and utilities.

– Cyclical sectors remain cheap, while defensive plays appear expensive.


BREAKING NEWS

Net fair-valuation gains helped lift net profit for worker and student accommodation provider Centurion Corp for its fiscal fourth quarter ended Dec 31, which jumped to S$53.1 million from the year-ago period’s S$5.8 million

Fragrance Group’s net profit for its fiscal 2018 ended Dec 31 more than quintupled to S$266 million from S$48.5 million in the previous year. For the 12 months ended Dec 31, revenue jumped 64.7 per cent to S$326.2 million from the previous year, from its sale of 555 Collins Street in Melbourne. Fragrance had completed the sale for A$140 million (S$134.7 million) last year.

Rubber chemicals producer China Sunsine Chemical Holdings’ fourth-quarter net profit dropped 17.7 per cent to 108.6 million yuan (S$21.9 million) from the preceding year. For the three months ended Dec 31, revenue fell 11.8 per cent to 770.1 million yuan from the year-ago period, on the back of a fall in overall average selling price. Earnings per share slid to 22.11 RMB cents from 26.85 RMB cents in the previous year.b Dividend per share jumped to S$0.055 from S$0.025 in the previous year. For the year, net profit rose 88 per cent to 641.3 million yuan.

Singtel shares fell in early trade on news of associate Bharti Airtel will be undergoing a capital raising exercise.

FY18 net profit for supermarket and convenience store retailer Dairy Farm International Holdings increased 5.2 per cent to US$424 million from the preceding year, the group said in a Singapore Exchange filing on Thursday.

Falling rubber prices and a decline in global macroeconomic sentiment dampened results for rubber supplier Halcyon Agri Corporation in its fourth quarter ended Dec 31. It sank into the red, chalking up a net loss of US$7.4 million, compared with a net profit of US$11.4 million in the previous year, the group said in a Singapore Exchange filing on Thursday.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

Important Information

Disclaimer
The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.

 

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com