Daily Morning Note – 31 May 2018


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SATS Ltd – Underlying operating volumes remain steady
Recommendation: Accumulate (upgrade), Last Close Price: $5.28
Target Price: $5.58, Analyst: Richard Leow
– Revenue and reported PATMI was in line with our expectation
– Underlying profit came in 7.5% lower than expected, due to one-off surplus
arising from the finalisation of valuation, in association with the acquisition of
10% stake in Evergreen Sky Catering completed in February 2017
– Positive surprise of higher final dividend of 12 cents (FY17: 11 cents)
– Upgrade to Accumulate (from Neutral); higher target price of $5.58
(previously $5.33)


Singtel Ltd – Daily timeframe – Bearish
– The key support area around the 3.32 level was broken on 30/05/18 with
increasing volume suggests further weakness.
– Thus with this strong bearish break below the 3.32 critical support area, the
immediate downtrend might accelerate for price to test the 3.16 support area
followed 3.10.

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


With the rally across most US indices, The Russell 2000 added 1.5 percent to finish at 1,647.99, a record high for the small-cap stock index.

OECD has predicted the current economic expansion could run for two more years. Oil and trade are the mentioned major risks.

China is reportedly looking to line up other countries against the U.S. in a pending trade war after the White House announced final list of $50 billion in imports that would be subject to 25 percent tariffs by June 15.

Uber CEO Dara Khosrowshahi says the company is on track for a 2019 IPO.

Roxy Pacific Holdings Limited acquire a freehold residential site at 27 Moulmein Rise at a purchase price of S$106mn. The site has an estimated total land area of 22,198 sq ft and can be redeveloped into a 20-storey residential apartment with a maximum permissible gross floor area of 72,003 sq ft.

StarHub Limited faces a pay-TV price spat with American cable content provider Discovery. Discovery has accused StarHub of being “not prepared to pay fair value” for its 11 English-language channels, which include Animal Planet, Eurosport and the Food Network.

Yangzijiang Shipbuilding (Holdings) Limited has started a share buyback of its company shares, repurchasing 5,000,000 shares from open market, for S$4.5 million. This comes as the Group’s share price declined by 13% over the past 5 trading days.

Accrelist Limited announced that it has formalised merchant agreements with Long Beach Seafood Restaurant, Sim Lim Square, Hong Kong Tea House and China Commodity Market to offer Accrelist-owned point-of-sale terminals at their outlets using Tencent’s WeChat Pay.

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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