Daily Morning Note – 13 February 2018
WEEKLY MARKET OUTLOOK WEBINAR
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RESEARCH REPORT
Fraser and Neave – Strong start into FY18 despite absence of CNY boost
Recommendation: Accumulate (Maintained), Last Close Price: S$2.41
Target Price: S$2.83 (Maintained), Analyst: Soh Lin Sin
– 1Q18 Revenue/PATMI formed 26%/17% of our full-year expectations
– Beverages remain a drag; partially mitigated by contributions from its
Vietnamese associate, Vinamilk
– Continues to accumulate its interest in Vinamilk; Interest increased to 19.50%
from 18.74% in end-FY17
– Maintained ACCUMULATE and SOTP-derived TP of S$2.83
TECHNICAL PULSE
800 Super Ltd – Daily timeframe – Bullish
– With the strong rejection off the support area on 12/02/18, price succeeded
in forming a hammer with increasing volume signals a reversal higher next.
– Expect the long-term uptrend to resume next once the bullish follow-through
occurs with buyers targeting the 1.16 resistance area followed by 1.26.
For more information and additional disclosures, refer to the link here.
BREAKING NEWS
The newly appointed Chief Executive Officer of Sapphire Corporation Limited, Executive Director Ms. Wang Heng, said the growth prospects of its core rail engineering business Ranken Railway Construction Group Co. Ltd are intact despite the termination of a proposed transaction that would have resulted in a new substantial shareholder.
Positive profit alert: China Sunsine Holdings Ltd announced that the Group expects to report a substantial increase in consolidated net profit, compared to the corresponding period from 1 October 2016 to 31 December 2016 as well was full year 2016.
Baker Technology Limited announced that it has secured a time charter contract for its Liftboat, the Blue Titanium. The Liftboat will be deployed in Southeast Asia to support rejuvenation works for oil & gas platforms for a National Oil Company.
Singapore tourism sector performance breaks record for the second year running in 2017. Both tourism receipts and visitor arrivals for 2017 attained record highs for the second time in two years. Tourism receipts rose by 3.9 per cent to S$26.8 billion, due primarily to growth in visitor arrivals across all top 10 markets and higher visitor arrivals from high-spending markets such as China, South Korea, United States (US) and United Kingdom (UK). Visitor arrivals increased by 6.2 per cent to 17.4 million, with 13 of the top 15 markets showing growth. (Source: Singapore Tourism Board)
Singapore Retail Sale Index grew 4.6% YoY in December 2017. Compared to December 2016, retail sales of motor vehicles and computer & telecommunications equipment rose 26.0% and 15.2% respectively in December 2017. Likewise, retail sales of supermarkets, petrol service stations, wearing apparel & footwear, recreational goods, food retailers and department stores increased between 1.0% and 8.2% during this period.
On the other hand, retail sales of watches & jewellery, optical goods & books, mini-marts & convenience stores, medical goods & toiletries and furniture & household equipment declined between 0.4% and 8.2% in December2017 over December2016.
(Source: Department of Statistics)
Source: SGX Masnet, PSR
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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