Daily Morning Note – 3 March 2018


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China Everbright Water Limited- Improving operation and strategy
Recommendation: Buy (Maintained), Last Done Price: S$0.45
Target Price: S$0.60, Analyst: Chen Guangzhi
– As of Dec-17, CEWL managed 94 projects, out of which 77 were under
operation, 11 were under construction.
– The FY17 daily designed capacity registered arrived at 5.34mn cubic meters
(+35.5% YoY) and the average group level water tariff was RMB1.36/tonne
(+10% YoY).
– CEWL is taking action on the new strategy (management + technology).
– The attempt to establish an industrial water fund encountered headwinds.

China Aviation (Singapore) Oil – Key drivers remain sound
Recommendation: BUY, Last Done Price: S$1.51
Target Price: S$2.00, Analyst: Chen Guangzhi
– Trading volumes continue to grow, and profits from associates touched a new
– Unexpected higher tax expenses in FY17.
– The 5th runway and satellite terminal in SPIA will drive up air traffic in this and
next year.

Q&M Dental Group – AngPow from the tooth fairy
Recommendation: Neutral (Maintained), Last Close Price: S$0.635
Target Price: S$0.625, Analyst: Soh Lin Sin
– FY17 Revenue was in line with our full year expectation; FY17 Earnings missed
by 9% on lower than expected results from associates
– Intensive organic growth: targets 10 new clinics each in SG and MY by end-
– Declared final dividend of 0.42 cents and a special dividend of 0.5 cents (Full
year dividend of 1.62 cents, +44.6%YoY)
– Maintained NEUTRAL and slightly higher TP at S$0.63 (previously S$0.61),
based on higher estimated 2.3 cents FY18 EPS and lower 27x FY18e PER

US Trades Monthly Update –DIS T– Hold, GME – Take Profit, AAOI – Stop Loss
Analyst: Ho Kang Wei
– DIS, T: Hold
– GME: Take Profit
– AAOI: Stop Loss


Ezra Holdings Limited has announced that a new investor, Asia Fund Space Group, has proposed to acquire new equity in the company and the possible subsequent injection of new assets.

Singapore Medical Group will be acquiring an 85% stake in Pheniks Pte. Ltd., which operates local aesthetics company SW1, and has proposed a 1-for-20 renounceable, non-underwritten rights issue of up to around 23.04 million new shares at an issue price of S$0.48 per rights share, to raise up to S$11 million.

Mary Chia Holdings has entered into an agreement to dispose its hotel property at Mosque Street for a cash consideration of S$64,800,000.

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

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