Daily Morning Note – 16 November 2018


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Asian equities looked set to round out the week with small gains, following a rally in U.S. stocks amid optimism that China and the U.S. would de-escalate their trade spat before the G-20 summit later this month.

Futures pointed to a higher open for stock markets in Japan, China and Hong Kong, while Australian shares opened in the green. Trade-sensitive industrial shares led the S&P 500 Index higher and technology shares rebounded, though Nasdaq 100 Index futures fell in Asian trading Friday after Nvidia Corp. gave a disappointing sales forecast. The pound held on to its plunge as Brexit again threw the U.K. government into turmoil. The dollar fell against every G-10 peer save the pound, while Treasuries rose. Oil continued to steady.


Health Management International – Biting a near-term bullet

Recommendation: BUY (Maintained), Last Close Price: S$0.555

Target Price: S$0.77, Analyst: Tin Min Ying

– 1Q19 Revenue and Core PATMI missed our estimates by -6.9% and -19.9% respectively. This
miss is due to StarMed start-up costs and accelerated amortisation of finance costs related to
the consolidation exercise.

– Higher outpatient load and average bill sizes boosted revenue by 6.7% YoY.

– EBITDA rose 8.6% YoY due to higher revenue intensity and effective cost management.

– Maintain BUY with a lower DCF-derived TP of S$0.77. Given a more moderated growth, we
lowered our revenue and EBITDA estimates for 2019-2020 by 5% and 7% respectively.

CNMC Goldmine Holdings Limited – On track of production turnaround

Recommendation: BUY, Last Done Price: S$0.22

Target Price: S$0.29, Analyst: Chen Guangzhi

– CIL plant lifted production volume

– Two new leaching pads to improve efficiency

– Tax expenses jumped


Sanli Environmental Limited announced a boost to its order book by S$54.3 million, growing it to S$134.4 million.

New private homes sold in October were 48% lower than September according to URA data. This was due to absence of major launches in October.

MVL Foundation has launched Tada Taxi, a zero-commission blockchain-based ride hailing app to cater to taxis.

Keppel Infrastructure Trust is acquiring Ixom HoldCo Pty Ltd for an enterprise value of A$1.10 billion. Ixom is a leading player in chemicals manufacturing and distribution in Australia and New Zealand.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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