Daily Morning Note – 15 February 2018


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Old Chang Kee – Strong sales on product innovations
Recommendation: Buy (Maintained), Last Close Price: S$0.75
Target Price: S$0.98 (Maintained)
– Strong 9M18 revenue met 78% of our full year FY18e expectation
– Earnings missed on costs pressure and assets write off, forming 64% of FY18e
– Investment thesis remains intact: Expanded factory space and factory
equipment to provide new capacity to boost product innovations and
enhance margins from 3Q18 onwards
– Maintained Buy with unchanged DCF-derived TP of S$0.98

Pacific Star Development Limited – Uncovering Puteri Harbour’s best kept secret
Last Close Price: S$0.22, Analyst: Phillip Research Team
– Diverse demand pool due to unique nature of development
– Guaranteed 5% return through deferred payment scheme
– Nusajaya key pillar of up-and-coming special economic zone

ComfortDelGro Corp Ltd – Higher dividends and a recovery underway
Recommendation: Buy (Maintain), Last Close Price: $2.01
Target Price: $2.50 (previously $2.63), Analyst: Richard Leow
– FY17 revenue in line; PATMI came in 4.3% lower than our estimate, on higher
than estimated opex in 4Q17
– 6.05 cents final dividend proposed (unchanged from previous year)
– FY17 10.4 cents total dividend (75% payout), higher than FY16 10.3 cents (70%
– Maintain Buy; lower target price of $2.50 (previously $2.63)

SATS Ltd – Weaker quarter, but growth profile intact
Recommendation: Neutral (Downgrade), Last Close Price: $5.25
Target price: $5.33 (previously $5.23), Analyst: Richard Leow
– 3Q18 revenue in line; underlying PATMI came in 3.9% lower than our estimate
– 9M18 revenue and underlying PATMI met 76% and 73% respectively of our
full year estimate
– Downgrade to Neutral (from Accumulate); higher target price of $5.33
(previously $5.23)


Spackman Entertainment Group Limited announced that its manhunt thriller film, GOLDEN SLUMBER, produced by its indirect wholly‐owned subsidiary Zip Cinema Co., Ltd., shall be released in Singapore on 8 March 2018. Clover Films Pte. Ltd. is the distributor of GOLDEN SLUMBER in Singapore.

Low Keng Huat (Singapore) has entered into a Sale & Purchase Agreement on 14 February 2018 with the owners of the units in the development known as Cairnhill Mansion who have consented to the collective sale of their units in the Development for the proposed enbloc sale and acquisition of the Development for a total purchase consideration of S$362,000,000.

Profit guidance: United Global Limited wishes to inform that, based on a preliminary assessment of the unaudited financial results for the full year ended 31 December 2017 of the Company and the Group, the Group is expected to record a significant increase in net profit for FY2017 as compared to the previous corresponding year.

Profit guidance: Jiutian Chemical Group Limited announced that following a preliminary assessment of the information currently available to the Board, including the unaudited financial statements for the 4th quarter and full year ended 31 December 2017, the Group is expected to report a significant increase in consolidated net profit, compared to the respective corresponding prior year period.

Profit guidance: STAR Pharmaceutical Limited wishes to announce that after preliminary assessment of the Group’s draft unaudited financial results for the fourth quarter ended 31 December 2017, the Board would like to advise that the Group is expected to record a significant drop in its revenue and report an operating loss for 4Q2017.

SBS Transit Ltd has entered into two sale and purchase agreements with the Land Transport Authority (the “LTA”) on 14 February 2018. The Sale and Purchase Agreements are entered into in conjunction with the transition to the New Rail Financing Framework (‘NRFF’) scheduled to be effective from 1 April 2018.

Tawana Resources NL and Alliance Mineral Assets Limited have commenced commissioning the Dense Media Separation (DMS) circuit at the Bald Hill Lithium and Tantalum Mine in the Eastern Goldfields region of Western Australia.

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

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