First Resources - Rating cut to HOLD, TP: S$2.19;
recent outperformance has priced in the strong
earnings recovery
Courts Asia – Growth and margins disappoint;
downgrade to HOLD with lower TP of S$0.77
3Q13 earnings of US$51.4m for First Resources exceeded
expectations. FFB output peaked during the quarter,
jumping 38% q-o-q. Our analyst expects sequentially
lower 4Q13 earnings on lower volumes. Rating cut to
HOLD; recent outperformance has priced in the strong
earnings recovery, TP unchanged at S$2.19.
2Q14 results for Courts Asia below expectations, growth
and margins disappoint. Lower earned interest charges led
to sharply lower gross margins and earnings. Our analyst
has cut FY14F/FY15F earnings by 32%/33%. Downgrade
to HOLD with lower TP of S$0.77 (Prev S$ 1.00).
3Q13 profit for CSE Global missed our estimates slightly
due to timing. Costs were booked for two projects, whose
revenue would accrue in 4Q13F. Post divestment of
Servlec, earnings may grow at over 12% CAGR
organically, in addition to the potential for inorganic
growth. Maintain BUY with revised TP of S$1.11 (Prev S$
1.07) as we roll over to FY14F earnings.
ComfortDelgro’s 3Q13 results in line, steady growth as
expected. 9M13 forms 77% of forecasts. CD is our
preferred land transport pick, given its geographical
diversification and steady growth profile.
Maintain BUY, TP: S$2.19.
3Q13 net profit of S$5.6m for Overseas Education in line.
9M13 profits formed 78% of FY13F. Growth was driven
by tuition fee hikes across all grades for the academic year
starting Aug 13. Based on current momentum, OEL looks
set to achieve our FY13F earnings. Maintain BUY with
S$1.01 TP.
2Q14 results for Tat Hong were in line; Australian
operations, crane utilisation and margins remained weak.
Australia operations may take time to recover. Interim DPS
of 1 Sct declared. Maintain HOLD with TP of S$1.01 (Prev
S$ 1.00).
US Indices Last Close Pts Chg % Chg
Dow Jones 15,821.6 71.0 0.5
S&P 1,782.0 14.3 0.8
NASDAQ 3,965.6 45.7 1.2
Regional Indices
ST Index 3,166.7 (13.5) (0.4)
ST Small Cap 533.1 (4.3) (0.8)
Hang Seng 22,463.8 (437.6) (1.9)
HSCEI 10,276.6 (285.0) (2.7)
HSCCI 4,374.0 (69.7) (1.6)
KLCI 1,782.5 (12.3) (0.7)
SET 1,404.8 (8.3) (0.6)
JCI 4,301.9 (78.7) (1.8)
PCOMP 6,321.0 (3.2) (0.1)
KOSPI 1,963.6 (31.9) (1.6)
TWSE 8,104.3 (91.0) (1.1)
Nikkei 14,567.2 (21.5) (0.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 586
Total Daily Vol (m shrs) 2,172
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
13 Nov
Target Price
($)
Hutchison Port Holdings Trust Buy 0.705 0.82
ComfortDelgro Buy 1.895 2.19
OCBC Bank Buy 10.400 12.40
Singapore Airlines Buy 10.280 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
13 Nov
Target Price
($)
Ezion Holdings Buy 2.090 2.60
CSE Global Buy 0.945 1.11
Frasers Centrepoint Trust Buy 1.800 2.14
Yoma Strategic Holdings Buy 0.740 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
3Q results for Petra Food within expectations. Effects of weak
IDR felt but margins should be sustained with higher ASP and
better cost management. FY14F estimate is trimmed by 3%
to reflect higher admin expenses. Maintain HOLD, TP revised
to S$3.65 (Prev S$4.06) on PE valuation metric. Prefer to
accumulate at below c.S$3.15 for c.15% upside potential.
Excluding translational FX loss of Rp19.1bn, Bumitama Agri
reported core 3Q13 net profit of Rp187.1bn (+10% y-o-y;
+12% q-o-q) - in line with our expected range of Rp181-186
bn. This brought 9M13 earnings to Rp508.7 bn, representing
67% of our full year forecast. Including translational FX loss,
the group reported 3Q13 net profit of Rp168.8bn (-19% y-oy;
+2% q-o-q). Sequential earnings growth was mainly driven
by 48% q-o-q drop in net interest expense and 32% q-o-q
drop in income tax; as top line had declined by 8% q-o-q;
and operating profit had eased by 5% q-o-q. Our forecasts
and TP of S$1.26 are under review, pending analyst briefing
and further analysis.
SingTel’s 2Q14 results were released this morning.
Underlying profit of S$884m -0.2% y-o-y, -1.1.4% q-o-q)
was in line with our estimates. However, group topline
declined 8.9% y-o-y due to lower mobile termination fee in
Australia and weak AUD. Will provide more updates.
Yangzijiang has secured 15 bulk carriers contracts worth
US$533m in total, comprising :-
(i) four capesize 208k dwt bulk carriers
(ii) nine panamax 82k dwt bulk carriers (of which four are
exercise of options)
(iii) two handymax 64k dwt bulk carriers through the exercise
of options.
YTD wins has been lifted to US$2,6bn, exceeding our
expectation of US$2.5bn. We will raise our FY13 order win
accordingly but lower our FY14 assumption as yard is already
filling up slots in 2016. With these new wins, Yangzijiang
now has a total of eight units 208k dwt capesizes, 19 units
82k dwt panamxes, and 33 units 64k dwt handymaxes in its
orderbook. These formed 82% of its total bulk carrier orders
of 73 units. The economies of scales from building the same
vessel type is one of the key contributors to Yangzijiang's
above-industry-average margins. Maintain BUY, TP: S$1.32.
We expect stable growth for Yanlord Land Group in 2014.
Sales target set at Rmb15bn, with c.15% y-o-y growth. Backloaded
delivery to 4Q and cash collection could be a concern.
Trimmed FY13 EPS by 15%; maintain HOLD, TP S$1.24.
BH Global has won multiple contracts worth a total of
approximately S$8.1m. These contracts were awarded by
both locally and internationally renowned companies.
Asiasons WFG Capital, for and on behalf of Asia New Energy
Holding, is proposing to acquire all the shares in Asia Power
Corp for S$0.16 cash.
CCM has been awarded three (3) contracts worth an
aggregate of S$5.6m from the Bishan-Toa Payoh Town
Council, for repairs and redecoration works.
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