Daily Morning Note – 19 Nov 2019



President Donald Trump and Federal Reserve Chairman Jerome Powell, who have been at odds over the direction of monetary policy, met Monday to discuss a variety of economic issues.

The two, along with Treasury Secretary Steven Mnuchin, discussed the economy broadly as well as growth, employment trends and inflation, the central bank said.


Malaysia’s IHH Healthcare on Monday said that its open offers for cash-strapped Indian hospital chain Fortis Healthcare and the latter’s subsidiary, Fortis Malar Hospitals (FMH), will not proceed for the time being.

Soilbuild Construction Group has won a S$162.5 million contract to build an industrial factory development at Tai Seng Avenue, lifting its order book to S$551 million, said the group on Monday.

Oxley Holdings has pared its stake in United Engineers (UE) to below 10 per cent after selling some 62 million shares, representing a 9.73 per cent interest, in the open market.

China Haida‘s proposal to transfer the listing of the group from the mainboard to the Catalist board has been rejected by the Singapore Exchange Securities Trading (SGX-ST).

Utility company Senoko Energy says it does not need additional funding from the Singapore government in the foreseeable future, disputing a report last Friday that said it is ailing and seeking a rescue package from the authorities here.

Wework is preparing to cut at least 4,000 people from its workforce as it tries to stabilise itself after the company’s breakneck growth racked up heavy losses and led it to the brink of collapse, two people with knowledge of the matter said.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR


SATS Ltd – Long-term growth from overseas expansion
Recommendation: ACCUMULATE (Maintained), Last Close Price: S$5.07
Target Price: S$5.36 (prev TP: S$5.47), Analyst: Edmund Xue

– 2QFY20 revenue beat our expectations, while PATMI fell short of expectations due to declining cargo revenue.

– Food Solutions and Gateway Services revenue grew 4.5% and 12% YoY, with growth showing in both aviation (+8.1%) and non-aviation (+6.5%) food industries.

– New joint venture in Daxing International Airport will expand presence for SATS in China. We estimate it to add $1.5mn to SATS’ bottom line.

– Indian revenue remains subdued due to vacant slots left by Jet Airways.

– Maintain ACCUMULATE with a lower target price of $5.36 (prev. S$5.47). Our PATMI for FY19e is cut by 2.4%.

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