Daily Morning Note – 11 February 2019

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YOUR PHILLIP SUMMARY

The U.S. and China are back at the negotiating table on trade, with China saying Vice Premier Liu He will join U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in high-level trade talks between the two countries this week. This round of talks is of particular significance as Trump has said he’s unlikely to meet President Xi Jinping before a March 1 deadline to avert higher American tariffs on Chinese goods. Thailand is gripped by political risks once again ahead of an election, as the party, Thai Raksa Chart, saw a stunning bid to make Princess Ubolratana Rajakanya its prime ministerial candidate rapidly unravel Feb. 8 when her brother, King Maha Vajiralongkorn, publicly opposed the move.



RESEARCH REPORT

SIA Engineering Company Ltd – Delayed recovery

Recommendation: Neutral (Maintained), Analyst: Richard Leow

Target Price: $2.66 (previously $2.81), Last Close Price: $2.52

– 3Q revenue in line with expectation

– 3Q PATMI came in 9.3% lower than expected, dragged down by one-time events of $20.9mn
from associated & JV companies

– Maintain NEUTRAL; new target price of $2.66 (previously $2.81), as we lower our FY19e earnings
estimate by 3%

BREAKING NEWS

In the US, negotiations over a bipartisan deal for border-security funding have stalled, aides familiar with the talks and other officials said, raising the specter of another government shutdown at the end of this week.

Thailand’s political divisions are erupting again with just over a month to go to the first general election since a coup almost five years ago.

Qantas Airways‘ vision for the first direct flights from Sydney to London is inching closer to reality as Boeing and Airbus finalise proposals for longer-range jets needed to span the 17,060km trip.

Theresa May is seeking to buy herself more time to renegotiate her Brexit deal as Parliament threatens to take control over the process to stop the UK plunging out of the European Union with no agreement in place.

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

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