Brokers' Digest 7 May 18

DBS Group Holdings (May 2: $30.61)
- Maintain neutral.  1Q 2018 net profit stood at $1.51 billion, which was up 27% q-o-q and 21%
y-o-y.
- We lift our 2018F net profit by 6% to $5.67 billion, mainly on a higher NIM assumption.  We raise our 2018F net interest income growth to 8.7%, from 7.6% previously.  This factors in 2018F loan growth of 8%
- We raise our Gordon growth model-derived price target to $29.60 (from $27, a 4% downside) as we increase our ROE assumption to 12.9% (from 12.7%)

iFAST Corp (May 2: 90 cents)
- Maintain Buy.  iFAST has made significant progress in the last two to three years by broadening the range of investment products and services on its platforms and laying the infrastructure to kick-start its business in China, a market it believes will be key in the future
- Improved revenue and profitability in 1Q2018, mainly owning to an increase in AUA for both B2B business and B2C business in the period, which benefited from new inflow of investments from customers as well as relatively positive market sentiment in the period
- Price target of $1.26 based on the dividend discount model (DDM) valuation methodology, given that it is a cash led business, supplemented by a relatively high dividend payout ratio of about 60%

Manulife US REIT (May 2: 94 US cents)
- Maintain Buy.   Manulife US REIT reported 1Q2018 distributable income of $15.6 million, exceeding our forecast of $15.3 million
- We raise our price target to US$1.02 marginally as we revise the 2018/2019/2020F DPU upwards to 6.1/6.9/7.7 US cents. 
- As highlighted in our April 17 report, we continue to wait for further clarity on the final decision regarding the financing mix of Penn and Phipps, as well as the actual impact on DPU.

Mapletree Logistics Trust (May 2: $1.28)
- Maintain Buy.  Mapletree Logistics Trust (MLT) reported its 4QFY2018 results, which met our expectations, with DPU growing 4.1% y-o-y to 1.937 cents.
- We fine tune our assumptions and now factor in a lower distributions from the divestment gains from 7 Tai Seng Drive.  Our fair value inches down from $1.48 to $1.44

Raffles Medical Group (May 2: $1.16)
- Maintain Buy.  Raffles Medical Group's (RMG) 1Q2018 scorecard was within ours and the street's expectations
- In our opinion, the lower y-o-y projected Patmi levels for FY2018 and FY2019, resulting largely from the expected start-up losses, should have been well-digested by the street as this has been guided by management for a few quarters now.  We maintain our assumptions and fair value estimate of $1.26

SPH REIT (May 2: 99 cents)
- Maintain Hold.  SPH REIT has announced that it has purchased The Rail Mall, its maiden acquisitions post-listing. 
- Given the low debt funding cost, the deal is anticipated to be accretive to the bottom line. 
- We raise our FY2019-FY2020F DPU estimates by about 1% to account for the new contributions from this purchase.  DDM-based price target is raised slightly to $1.07.  SPH REIT offers investors 5.6% to 5.8% FY2018-FY2019 dividend yield

Tianjin Zhongxin Pharmaceutical Group Corp (May 2: US$1.04)
- Maintain Buy.  Outperforming our expectations, Tianjin Zhongxin Pharmaceutical Group's 1Q2018 profit represents 31.8% of our estimate on a normalized basis.
- We tweak our 2018-2020 net profit attributable to shareholders to RMB589.3 million (+3.5%), RMB696.6 million (+3.9%) and RMB748.5 million (+4.5%), respectively.  PER-based price target of US$1.72 (RMB6.29/US$), pegged to peers' average of 14.1 x 2018F PER.

Tuan Sing Holdings (May 2: 42 cents)
- Maintain Buy.  For 1Q2018, Tuan Sing Holdings' (TSH) results were above our expectations as the $8.2 million (+55.6% y-o-y) profit included a $3.5 million gain on disposal.
- Unchanged sum-of-the-parts-based price target of 71 cents, implying a 65.1% upside.  At current prices, TSH is trading at fire-sale levels of 51.4% of book value

Valuetronics Holdings (May 2: 78.5 cents)
- Maintain Buy.  Valuetronics' share price has slumped 25% since its Dutch MNC customer reported a 1Q2018 earnings miss, owing to weak sales at its home lighting division.
- We believe the recent share price correction presents a good buying opportunity at an attractive FY2018F yield of 6.6%, as we believe the recent selling is overdone.  We lower our price target to 96 cents, assuming a lower FY2019F PER of 10x (from 11x), owing to the weaker sentiment globally for the electronics and semi-conductor sector

(Source:  TheEdgeSingapore May 7 2018)