Daily Morning Note – 22 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

Thai Beverage – New additions to reach greater heights
Recommendation: Buy (Maintained), Last Close Price: S$0.84
Target Price: S$1.05 (Downgraded), Analyst: Soh Lin Sin
– 1Q18 Revenue/Adjusted PATMI met 22%/18% of our full year expectations
– Slower-than-expected domestic alcohol beverage, mitigated by improvement
in non-alcoholic beverages and food business
– Earnings weighed by lower associates contributions, THB2.3bn non-recurring
acquisition expenses and higher finance costs
– Next to watch in 2Q18: First contribution from Sabeco (as consolidated
subsidiary basis)
– Maintained BUY with lower SOTP-derived TP of S$1.05 (previously S$1.18)

United Overseas Bank Limited – Stellar performance across all segments
Recommendation: BUY (Upgrade), Last Traded Price: S$27.46
Target Price: S$29.00, Analyst: Jeremy Teong
– 4Q17 PATMI of S$855mn is in line with our estimate.
– NII increased 15% YoY on the back of robust loans growth and higher NIM.
– WM fee income grew 29% YoY on higher contribution by HNW segment.
– Higher specific provisions were offset by reversal of excess general provisions.
– Upgrade to BUY (previously ACCUMULATE) with a higher target price of
S$29.00 (previous TP S$25.22) based on Gordon Growth Model.

Oversea-Chinese Banking Corp – Stellar performance across all segments
Recommendation: BUY (Upgrade), Last Traded Price: S$12.92
Target Price: S$13.94, Analyst: Jeremy Teong
– 4Q17 PATMI of S$1,033mn was in line with our estimates
– NII increased 14% YoY on the back of strong loans growth and higher NIM
– WM fee income grew 38% YoY on the back of strong AUM growth
– Net trading income weaker YoY and QoQ as global FICC trading environment
remains weak.
– Upgrade to BUY (previously ACCUMULATE) with a higher TP of S$13.94
(previous TP S$13.48) based on Gordon Growth Model.

Retails on Sale – Overreaction to Walmart results
Analyst: Ho Kang Wei
– WMT results disappoint
– Spillover to other retail stocks overdone
– Retail and e-commerce fundamentals remain strong

TECHNICAL PULSE

Hang Seng Index – Daily timeframe – Bullish
– The bullish follow-through has also succeeded in breaking price back above
the 30,000 psychological round number, 20 and 60 day moving average on
21/02/18 signals the resurgence of the bulls.
– Expect the long-term uptrend to resume next for price to test the 31,958
resistance area followed by 33,000 round number.

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




BREAKING NEWS

Sanli Environmental Limited has secured four new Engineering, Procurement and Construction contracts worth a total of S$18.1mn, bringing the Group’s order book to S$121.3mn. The Contracts are expected to contribute to the Group’s revenue for the FYE 31 March 2018.

Silverlake Axis Ltd has secured 5 new accounts in ASEAN and Hong Kong for its insurance customer ecosystem platform business.

United Overseas Bank Limited intends to issue GBP350mn Floating Rate (0.24% over the 3-month Sterling LIBOR) Covered Bonds due 2023 on 28 Feb-18.

Frasers Commercial Trust plans to issue S$60mn 3.185% notes due 2023 on 28 Feb-18 and will be unconditionally and irrevocably guaranteed by the FCOT Trustee, i.e. British and Malayan Trustees Limited.

Charisma Energy Holdings Limited issued a negative profit guidance for the 4Q2017 and FY2017 financial statements, on challenging operating environment in the marine and offshore oil and gas industry. The Group is expected to record a net loss due to impairments (value has yet to be finalized). FY2017 results will be announced on or after 23 Feb-18.

Source: SGX Masnet, Phillip Securities Research

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.

 

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you

IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com