Courts Asia: NDR Feedback; Maintain BUY, $0.755 - TP $1.06
COURTS SP | Mkt Cap USD336.6m | ADTV USD0.6m
Ø Maintain BUY at SGD1.06 TP (reduced from SGD1.15 on the lower FY14F forecast) pegged to 14x earnings.
Ø We hosted a NDR with Courts to confirm our views on the retail scene
in Singapore and Malaysia. We believe the share price has already priced
in overall weakness in demand. Barring a longer-than-expected closing
of the JEM store, the trough should be seen in 2QFY14 (3QCY13).
Ø Going forward, things should improve on (1) a loosening in credit
policy to improve sales, particularly in Malaysia, (2) a short-term
boost in sales from iPhone 5S and (3) the maiden store opening by FY3/15
in Bekasi, Indonesia, to boost sales.
Click here for full report alisonfok@maybank-ke.com.sg
Rickmers Maritime: NDR Feedback; Not Rated
RMT SP | Mkt Cap USD192.2m | ADTV USD0.1m
Ø We hosted Mr. Thomas Preben Hansen and Mr. Gerard Low from Rickmers
Trust Management, Trustee-Manager of Rickmers Maritime (RMT) on a one
day road show, where they introduced their Trust and shared valuable
insights on latest industry trends.
Ø While RMT’s gearing ratio had improved significantly following a
recently completed Rights Issue, a recovery in charter rates over 2014/5
remains critical as a significant number of vessel charters will expire
over that period of time. If forecasts by Maersk Broker for a
significant recovery in charter rates materialize, we expect RMT to be a
beneficiary.
Ø RMT is a leveraged play to a cyclical recovery in the container
shipping sector, in our view. The stock offers an attractive yield of
c.10%, assuming its DPU of USD0.024 a year is maintained. We do not have
a rating on RMT.
Click here for full report derrickheng@maybank-ke.com.sg
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