Daily Morning Note – 13 February 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

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

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.