Daily Morning Note – 17 May 2018


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Thai Beverage – Accretive acquisitions but domestic beer demand drags
Recommendation: Buy (Maintain), Last Close Price: S$0.61
Target Price: S$1.05, Analyst: Soh Lin Sin
– 1H18 Revenue/Core EBITDA met 55%/50% of our full year expectations; Earnings
missed on higher than expected finance costs and effective tax rate
– Strong results from recent acquisitions unable to offset the persistent weakness in
Thai Beer market
– Introduction of a new excise tax of 2% for Elderly Fund since 26 Jan-18
– Proposed lower interim dividend of 0.15 baht per share (1H17: 0.20 baht)
– Maintained BUY with unchanged SOTP-derived TP of S$1.05

CNMC Goldmine Holdings Limited – Satisfactory CIL results
Recommendation: BUY, Last Done Price: S$0.275
Target Price: S$0.42, Analyst: Chen Guangzhi
– The first gold pour from CIL plant delivered a substantial improvement in
– Business remains intact under the new federal administration.
– Both operating and non-operating costs will surge.
– Upgrade to BUY with a higher TP as we expect production and earnings will
rebound strongly this year

Banyan Tree Holdings Limited – Improved profitability across major business segments
Recommendation: Accumulate (Maintained), Last Close Price: S$0.59
Target Price: S$0.73, Analyst: Tan Dehong
– Revenue and earnings outperformed our forecasts due to stronger performance
from Group-owned hotels.
– Better operating performance from Group owned hotels in biggest market
Thailand offset weakness in Maldives.
– Improved profitability in Fee-based segment.
– Property sales segment turned in losses even with 155% YoY increase in revenue.
– Maintain ACCUMULATE with higher target price of S$0.73 (from $0.71) after
factoring in divestment gains.

SIA Engineering Company Ltd – On a path to recovery
Recommendation: Accumulate (Maintain), Last Close Price: $3.31
Target Price: $3.57, Analyst: Richard Leow
– Revenue was within our and consensus expectation
– Adjusted PATMI was 4% lower our expectation; and in line with consensus
– Final dividend of 9 cents with no special dividend (FY17: 9 cents final, 5 cents
– Maintain Accumulate, higher target price of $3.57 (previously $3.51)

Asian Pay Television Trust – Non-subscription revenue caused the damage
Recommendation: Buy (Upgrade), Last Close Price: S$0.47
Target Price: S$0.52, Analyst: Paul Chew
– 1Q18 revenue and EBITDA disappointed, after declining by 7% YoY. Our
expectations were flat revenue and EBITDA.
– Revenue was negatively affected by weaker selling prices from TV prepaid
packages and a significant drop in non-subscription revenue sourced from TV
channel leasing.
– We have cut our target price to S$0.52 (previously S$0.62). This is after lowering
our earnings forecast and terminal growth rate assumptions. The yield is
attractive, but capital appreciation will be challenged until there are more stability
in revenues. The share price decline has triggered an upgrade to BUY.


Geo Energy Res Ltd – Daily timeframe – Bullish
– Since the bullish rejection off the 0.215 range low on 14/05/18, the bullish follow-through managed to break price above the 0.230 range high on 16/05/18 signals a reversal higher next.
– Expect price to rebound higher next once the bullish follow-through occurs for price to test the 0.265 resistance area followed by 0.300.

For more information and additional disclosures, refer to the link here.


Keppel Offshore & Marine’s (Keppel O&M) wholly-owned subsidiary Keppel Singmarine Pte Ltd (Keppel Singmarine) has secured contracts from Van Oord to build two high-specification Trailing Suction Hopper Dredgers (TSHDs).

Profit Guidance: The Board of Directors of Hiap Seng Engineering Ltd expects the Group to report a loss for 4QFY2018 and FY2018.

Profit Guidance: The Board of Directors of Travelite Holdings Ltd expects the Group to report a loss for FY2018.

BlackRock has become a substantial shareholder of Venture Corp Ltd, raising its stake from 4.94% to 5.13%.

SATS Ltd has entered into a JV agreement with Jet Aviation (Asia Pacific) Pte. Ltd. and Universal Singapore Airport Services Pte. Ltd., to set up a company in Singapore to carry on the business of providing terminal management services as the operator of the Seletar Airport Business Aviation Center.

The Group Managing Director of OKP Holdings Limited, and the Project Director and the Project Engineer for the project, have received summonses from the Ministry of Manpower and/or the Building & Construction Authority in relation to the accident (exit to Tampines Expressway).

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