Daily Morning Note – 12 March 2018
WEEKLY MARKET OUTLOOK WEBINAR
Register HERE for MONDAY’s 11.15am webinar if you have not already done so.
Archived webinars available.
RESEARCH REPORT
Technical Analysis: The Phillip 20 Portfolio – February Monthly Review
– New Entries: OCBC, 800 Super, Sunright, Micro-Mechanics
– Take Profit: PanUnited
– Stop loss: YZJ Shipbldg SGD, Sunningdale Tech, Yoma Strategic, China Aviation,
SPH, Golden Agri-Res, Thaibev
– Total return since May 17 to February 18 is +4.94%
– Uptrend in the STI resumed as the 3354 – 3341 support area held up
Dairy Farm International – Biting the bullet for better profitability
Recommendation: Buy (Maintained), Last Close Price: US$8.03
Target Price: US$9.83 (Previously US$9.89), Analyst: Soh Lin Sin
– FY17 Revenue was in line with our expectation; FY17 Adjusted PATMI missed our
estimation by 6.6% on higher than expected operating expenses and tax rate
– Strong trading performances from Convenience Stores, Health and Beauty, IKEA,
Maxim’s and Yonghui
– PATMI weighed by poor operating results from Southeast Asia Food and
US$64.5mn of business change costs; excluding the business change costs, PATMI
+1.5%
– Declared final dividend of US14.50 cents (Full year dividend of US21.00 cents,
unchanged from last year)
– Maintained BUY and slightly lower SOTP-derived TP at US$9.83 (previously
US$9.89)
TECHNICAL PULSE
UOL Ltd – Daily timeframe – Bullish
– The subsequent bullish follow-through suggests that the uptrend might have
resumed as price succeeded in closing back above the 20 week moving average on
the week ended 09/03/18.
– Expect price to turn back into the uptrend once the bullish follow-through occurs
where buyers target the 9.11 resistance area followed by 9.38.
For more information and additional disclosures, refer to the link here.
BREAKING NEWS
BreadTalk Group Limited has entered into a joint venture agreement with Wu Pao Chun Food Ltd, to operate the Wu Pao Chun brand of bakeries in Beijing, Shanghai, Shenzhen and Guangzhou under a master franchise agreement.
Yoma Strategic Holdings Ltd.and Grab have signed a strategic framework agreement. The partnership will focus on upgrading the fleet of taxis in Myanmar, together with the provision of vehicle financing for Grab’s driver-partners
Keppel FELS Limited, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd, has secured a contract from Awilco Drilling PLC, to construct a mid-water semisubmersible (semi) drilling rig for harsh environment use, worth about US$425 million
mm2 Asia Ltd. has established a U.S.$300mn Guaranteed Multicurrency Medium Term Note Programme
Datapulse Technology Limited has appointed RHTLaw Taylor Wessing LLP to undertake Internal Controls Review.
Wilmar International Limited exercised has its 481,843,884 compulsorily convertible preference shares of Shree Renuka Sugars Limited. Wilmar’s shareholding in Shree Renuka Sugars Limited’s equity share capital has increased from approximately 27% to 39%
Source: SGX Masnet, Phillip Securities Research
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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