AEM Holdings (Jan 24: $4.31)
- MAINTAIN ADD
- AEM has raised its FY2017 pre-tax profit
guidance to a range of between $35 million and $37 million
- We raised our EPS forecasts by 16.2% for
FY2017 and 33.6%/31.3% for FY2018/19
- Given the higher earnings forecasts, our
price target is raised to $5.97
Cache Logistics Trust (Jan 24: 86.5 cents)
- MAINTAIN HOLD
- With Cache reportedly looking at
acquiring a sizeable logistics portfolio in Australia, if successful, this might
prove to be the turning point
- Our price target is adjusted upwards to
90 cents on the back of lower cost-of-equity assumptions, with potential upside
if debt headroom is deployed into acquisitions
Frasers Centrepoint Trust (Jan 24: $2.31)
- BUY
- 1QFY2018 DPU of $3, up 3.8% y-o-y, was in
line with both consensus and our estimates
- We believe the shares have not fully
priced in the stronger rental reversions and possible upside from acquisitions
- We raise our DDM-based price target by 4%
to $2.55 after revising up DPUs.
Frasers Commercial Trust (Jan 24: $1.51)
- MAINTAIN BUY
- Consensus has a "hold" call,
owing to concerns that FCOT is ex-growth
- The news that HP will stagger its exit
from Alexandra Technopark finally removes the HP lease uncertainty as an
overhand on FCOT.
- We maintain our DCF-based price target of
$1.71, with 10% capital upside and attractive 6.4% yield
Frencken Group (Jan 24: 64.5 cents)
- Buy (initiating coverage)
- A high tech manufacturer with a
diversified portfolio of blue-chip customers in various industries, Frencken
represents an excellent proxy to Europe's economic recovery
- We believe Frencken's dividend will
continue and we expect attractive yields of 3.5% and 3.8% for FY2017 and
FY2018, respectively
- PER-based price target of 79 cents,
implying 33.9% upside
Keppel DC REIT (Jan 24: $1.46)
- DOWNGRADE TO HOLD
- KDCREIT's 4QFY2017 results met our
expectations
- After fine-tuning our assumptions, we
lower our FY2018 and FY2019 DPU forecasts by 1.3% and 3.6%, respectively
- However our fair value inches up from
$1.50 to $1.51
M1 (Jan 24: $1.87)
- MAINTAIN NEUTRAL
- M1's 4QFY2017 core earnings fell 6% q-o-q
on seasonally higher handset cost and depreciation expense
- We make no change to our forecast but
roll over our valuation base year.
- A slightly higher DCF-derived price
target of $1.95 (from $1.90, 4.3% upside)
Sembcorp Marine (Jan 24: $2.52)
- UPGRADE TO BUY
- Our investment thesis assumes: (a)
SembMarine sees a revival of new orders to $4 billion in 2018, ending a
two-year slump; and (b) the company's balance sheet risks are resolve and net
gearing falls to less than 30% by 2018, from 131% in 3QFY2017
- At our price target of $3.06, the stock
would trade at 2.4x FY2018E P/BV, slightly above its long-term mean P/BV of
2.3x.
Singapore Exchange (Jan 24: $8.40)
- MAINTAIN OUTPERFORM
- SGX reported 2QFY2018 net profit of $88
million, down 3% q-o-q and flat y-o-y, 6% behind our estimates but broadly in
line with consensus
- With good momentum in both securities and
derivatives business, we expect SGX to return to earnings growth after five
years. Price target of $8.70
(Source: TheEdgeSingapore January 29 2018)
