Daily Morning Note – 5 March 2018
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RESEARCH REPORT
China Sunsine Chemical Holdings Ltd – What an outstanding year
Recommendation: BUY (Maintained), Last Done Price: S$1.35
Target Price: S$1.60, Analyst: Chen Guangzhi
– Major propellant came from soaring average selling price (ASP)
– The trial run of new capacity is pending for approval
– Raw material and rubber chemical prices are expected to remain high
Y Ventures Group Ltd – Investing for the future
Recommendation: NEUTRAL (Downgraded), Last Done Price: S$0.68
Target Price: S$0.70, Analyst: Alvin Chia, Paul Chew
– Revenue in FY17 was weaker than anticipated as some revenue transitioned away
from wholesale to online more aggressively than expected
– Expenses rose due to several one-offs, including upfront cost for projects in FY18
and increase in marketplace commission and fulfilment costs
– We downgraded our BUY recommendation to NEUTRAL with an unchanged target
price of S$0.70. Our downgrade is due to the recent price appreciation. There is
no change to our fundamental view of the company.
City Developments Limited – A fruitful year of successful landbanking
Recommendation: Accumulate (Maintained), Last Done Price: S$12.69
Target Price: S$13.40, Analyst: Tan Dehong
– FY17 revenue and adjusted earnings in line with forecast.
– Continued healthy uptake for launched local residential properties.
– Successful land acquisitions to capitalise on the Singapore residential market
upcycle.
– Recovery in hotel operations with 3.2% YoY global RevPAR growth, in constant
currency for FY17.
– Maintain ACCUMULATE with higher TP of S$13.4 (based on 15% discount to
RNAV).
Technical Analysis: S&P 500 – Monthly recession tracker – February update
Analyst: Jeremy Ng
– VIX Index indicator threshold was triggered in February, but the recent Volatility
explosion event is unlikely to usher in the end of the equity bull market
– Ted spread breaking above the 2 months range signals some tightening in the
interbank market
– The rest of the 14 indicators in the “Phillip Recession Tracker” remained fine
– Broad-based equity market should continue to stay in the uptrend
Ho Bee Land Limited – Possible relaunch of Sentosa properties as market recovers
Recommendation: ACCUMULATE (Maintained), Last Done Price: S$2.53
Target Price: S$2.98, Analyst: Tan Dehong
– Stable recurring income portfolio continues to buffer earnings in absence of
development income.
– Recovering sentiment in high-end properties presents monetisation possibility for
Sentosa properties.
– Impairment loss of S$16.8mn for JV project, Cape Royale in Sentosa.
– Maintain Accumulate with unchanged TP of S$2.98 (30% discount to RNAV).
Dasin Retail Trust – Tying up FY2017 on a steady footing
Recommendation: BUY (Maintained), Last Done Price: S$0.87
Target Price: S$0.98, Analyst: Phillip Research Team
– Revenue and NPI for FY17 were in line with our forecast. 69% YoY boost in
revenue on the back of contribution of Shiqi Metro Mall, acquired in June 2017.
– Further organic growth to be expected from the opening of Shiqi Metro Mall
Phase II in October 2017.
– Ample debt headroom (29.5% gearing) to act on ROFR pipeline of 19 properties.
– Maintain BUY and unchanged target price of S$0.98
BREAKING NEWS
Memories Group Limited has entered into a sales and purchase agreement with Tint Tint Travel and Tours Company Limited and Freepier Limited to acquire Burma Boating business for a purchase price of Kyat 1.3bn (c.US$1.0mn), which will be satisfied in cash and funded by the Group’s internally generated funds.
AEM Holdings Ltd attracted several long-only institutional and family funds, who took up 4mn shares at $6.10 per share from Orion Phoenix. Following the shares sale, Orion Phoenix’s shareholding was reduced by c.6.0% of AEM’s issued and paid up shares to 17.3%.
Y Ventures Group Ltd entered into a non-binding memorandum of understanding with Singapore Post Limited to explore a potential collaboration for the development of, amongst others: (a) an e-commerce buying platform which will focus on cross-border purchases on behalf of consumers, and consolidated deliveries; and (b) logistics-related technology to enhance efficiency across the vertical logistics chain.
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
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