Daily Morning Note – 7 August 2018
WEEKLY MARKET OUTLOOK WEBINAR
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YOUR PHILLIP SUMMARY
U.S. stocks rose as strong results from Berkshire Hathaway Inc. lifted financial shares and higher oil prices boosted energy producers. The dollar and Treasuries advanced. The S&P 500 climbed for a third day to reach its highest since January on below-average volume. The Trump administration moved to restore some U.S. sanctions on Iran and reaffirmed plans to impose tougher penalties on the country’s oil sales in November, as President Hassan Rouhani comes under increasing economic and political pressure to address the crisis.
Sembcorp Industries Ltd – India operation turned around
Recommendation: BUY, Last Done Price: S$2.7
Target Price: S$3.70, Analyst: Chen Guangzhi
– Utilities in both Singapore and China delivered healthy performance
– India turned profitable, but some operational issues remain
– Marine segment still dragged the group improvement
United Overseas Bank Limited – Loans growth picked-up pace
Recommendation: BUY (Upgraded), Last Done price: S$26.59
Target Price: S$34.50, Analyst: Tin Min Ying
– 2Q18 PATMI of S$1,077mn is in line with our forecast of S$1,067mn.
– NIM expansion, loans growth, and lower allowances were the key earnings
– NII grew 13.7% YoY on the back of strong loans growth of 9.7% YoY and
expansion of NIM by 8bps to 1.83%.
– Upgrade to BUY (previously ACCUMULATE) with a higher target price of
S$34.50 (previous TP S$31.70), as we raised our ROE and earnings estimates
Profit Guidance: Hiap Seng Engineering Ltd expects to record a net loss for the period 1QFY2019 ended 30 June 2018.
CSC Holdings Limited has entered into a joint venture to acquire 50% stake in a residential development project in Cambridge, UK.
Profit Guidance: CDW Holding Limited expects to report an operating loss for the first six months period ended 30 June 2018. The expected consolidated operating loss was primarily caused by fewer orders attributable to inventory adjustment in the gameset division of the Group’s LCD Backlight Units segment and the delay in mass production orders in the Group’s OEM business.
Frasers Property Limited has completed the acquisition of a Business Park located in Bracknell, UK.
Thomson Medical Group Limited has acquired a 30% interest in Squire Mech Consultants Sdn. Bhd. for RM 200,000; and a 30% interest in RSP Architects Sdn Bhd for RM 1.
Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, 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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