Daily Morning Note – 29 January 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

Y Ventures Group Ltd – Monetizing data analytics through e-commerce
Recommendation: Buy (Initiation), Last Close Price: S$0.44
Target Price: S$0.70, Analyst: Phillip Research Team
– 50% p.a. growth in revenue over the next two years from e-commerce sales.
– Data analytic capabilities creating new revenue streams from own branded
products and distributorships in consumer products.
– Initiate with BUY and target price of S$0.70. This is based on PE of 30x FY18e.

China Sunsine Chemical Holdings Ltd – Catch a right time to expand production
Recommendation: Buy, Last Done Price: S$1.11
Target Price: S$1.60, Analyst: Chen Guangzhi
– Sunsine is the market leader in rubber accelerator industry, commanding 18%
share of global production
– Expecting current product spread to sustain for the next couple of years as
supply continues to consolidate in China
– Stringent environmental policies in China are phasing out smaller producers in
favour of the leading producers such as Sunsine
– Additional growth by capacity ramping by a third to 117k tonnes by 2020

CapitaLand Commercial Trust – A year of portfolio reconstitution and bottoming in
office rents

Recommendation: Neutral (Downgraded), Last Close Price: S$1.92
Target Price: S$1.80, Analyst: Tan Dehong
– FY17 NPI and DPU within our estimates.
– Portfolio occupancy stable as tenant retention rate improves.
– Divestment proceeds and tax-exempt income used to top up the rental
shortfall from divestments.
– Momentum in office rent recovery accelerates in 4Q17.
– Downgrade to Neutral with unchanged TP of S$1.80, after 16% run-up in
share price.


TECHNICAL PULSE

Moya Asia Ltd – Weekly timeframe – Bullish
– There was another strong bullish close above the 20 week moving average in
the week ended 26/01/18 with surging volume signals rising interest.
– With the current bullish price action, expect the uptrend to regain control for
price to test the 0.108 resistance area followed by 0.124.

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

BREAKING NEWS

City Developments Ltd.’s (CDL) final cash offer for Millennium and Copthorne Hotels plc has lapsed. As of the closing date of the final offer, CDL received acceptances from 47.1% of shares which it does not already own, falling short of the 50% required for the Final Offer to be valid.

United Overseas Bank Ltd. has acquired a 10.29% interest in Marco Polo Marine Ltd. (MPML), pursuant to a court-approved refinancing and debt restructuring exercise involving MPML and its subsidiaries. The MPML shares were allocated to UOB at S$0.035/share.

Roxy-Pacific Holdings Ltd., together with a private family office of Tong Eng Group MD Teo Hong Lim, has acquired a freehold residential site, The Wilshire in district 10 for S$98.8mn. Roxy-Pacific will hold a 40% interest in the joint venture.

Chew’s Group Ltd. expects Phase 1 of the construction of its New Farm to complete by end 2019, which will increase its daily production capacity to 580k eggs/day. Capex is estimated to be S$40mn, lower than the initial S$77mn estimated.

Mary Chia Holdings Ltd. will resume trading on the SGX from 29 January 9am, following its successful raising of its public float to >10% of total issued shares.

BreadTalk Group Ltd. and Song Fa Holdings have opened their first joint venture Song Fa restaurant in Shanghai Jing An Kerry Centre.

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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