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Investors’ Corner
Investors' Corner | 02 October 2009
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By: wyaikay
Articles (1) Profile

ComfortDelGro Corp
Price – $1.57
Target – $1.73

ComfortDelGro’s (CDG) average daily bus ridership in Aug-09 declined by 3.1% y-o-y to 2.3m. Average daily rail ridership grew by 4.3% y-o-y to 0.4m. Overall ridership figures continues to trend weaker partially due to the high base effect. YTD, average daily rail and bus ridership have increased by 6.2% y-o-y and -1.6% y-o-y respectively. We have revised our FY09E ridership forecasts for rail from 8% to 6% and bus from 4% to -1%. Accordingly, we have revised our earnings downwards by about 1% in FY09-11E to account for the lower ridership in our forecasts, offset by lower staff costs and savings from the lower oil price (YTD oil price is US$56/bbl vs our revised fuel cost of US$60/bbl from US$62.3/bbl). Our revised target price is based on our DCF valuation, which implies a PE of 15x and 13.9x FY09-10E, respectively. BUY.
– Deutsche Bank (27 Sep)

CosmoSteel Hldgs
Price – $0.605
Target – $0.84

The global economy is in a recovery state and general demand for steel is likely to increase. In particular, the Oil and Gas and Water segments, which CosmoSteel focuses on, are likely to experience growth. We enjoy its emphasis on its role as a stockist and serving its clients well. It leverages on the distinctive Enterprise Resource Planning system as a support function places them in a superior position relative to its peers. The management, has recently, via ordinary shares placement, raised a gross proceed of $17.3m which is approximately 16.6% of the enlarged capital. We deem this change favourable as the proceeds can increase its financial flexibility and fuel the company’s growth strategy into new market and industry. We forecast a strong revenue growth of 86.9% from 2009F to 2013F given the bullish outlook. INCREASE EXPOSURE.
– SIAS (28 Sep)

Genting Singapore
Price – $1.12
Target – $0.90

The key swing factor for Singapore’s gaming revenues is the proportion of VIP spending versus the mass market and, in particular, junket VIP revenues. Our channel checks suggest that Macau junkets are not keen to replicate their credit-offering operations in Singapore, given the potentially smaller market size. We estimate Singapore’s 2010 casino revenue to be one-fifth of Macau’s, at US$2.6-2.8b. Additionally, junkets are wary of the licensing requirements by Singapore authorities and the potentially more efficient monitoring and scrutiny. We believe Macau VIP punters are not likely to visit the Singapore casinos due to travel times and, worse yet, junket financing may not be widely or readily available. Having risen over 140% in the past year, the stock is expensive on all measures, trading at a premium to its global peers and relative to the Singapore market. Initiate with UNDERPERFORM.
– Credit Suisse (28 Sep)

Ying Li Int’l Real Estate
Price – $0.875
Target – $1.17

Ying Li Int’l Real Estate (YingLi) has an established track record of having built some of Chongqing’s most recognized skyscrapers. Prominent projects in the pipeline, the International Finance Centre, which when completed in 2011, should be Western China’s tallest building. YingLi has a current land bank of nearly 1m sqm under development, most of it in the key CBD area of Yuzhong district. At the same time, YingLi is developing other high-end properties for residential, retail and office uses up to 2013. Groomed by the central government to be Western China’s leading light and financial centre, we expect Chongqing’s economy to continue growing at double-digit space, driving demand for high-end property developments. Coupled with the city’s plan to redevelop over 12m sqm of land area in its key districts, YingLi is well positioned to acquire more land bank for future growth. BUY.
– DBS Vickers (29 Sep)

ComfortDelGro Corp  2.420 -0.02 -0.82%   
Business: [FY18 Turnover] Public transport services (71.2%), taxi (19.1%), others (9.7%).

Insight: May-19, 1Q19 revenue rose 7.8% to $947.3m, underpi... Read More
CosmoSteel Hldgs  -- -- --   
Business: Co is a supplier & distributor of piping system components. [FY17 Turnover] Energy (74.8%), trading (16.6%), marine (7.3%), others (1.3%).

Insight: Aug-18, 9M18 revenue increased by 23.1% as revenue... Read More
Genting Singapore  0.920 -- --   
Business: Develops, operates & mkts casinos & IRs globally, including Australia, M'sia, Philippines & UK. [FY18 Turnover] Gaming (66.1%), non-gaming (33.8%), others & invs (0.1%).

Insight: May-19, 1Q19, despite Co's non-gaming business reg... Read More
Ying Li Int'l Real Estate  0.098 -0.001 -1.01%   
Business: Property developer based in Chongqing. [FY18 Turnover] Property development (74.6%), property investment (25.4%).

Insight: May-19, 1Q19 revenue fell 53.8% to Rmb143m attribu... Read More

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