Username
Password
Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,114.16 -11.98 -0.38%
Hang Seng 26,719.58 -128.91 -0.48%
Dow Jones 26,770.20 -255.68 -0.95%
Shanghai Composite 2,938.14 -39.19 -1.32%
Top 5 Analysts’ Calls For The Week
In the Spotlight | 05 September 2014
Related stocks:
Q0F
W05
S85
554
By: Jonathan Khoh
Articles (26) Profile

IHH Healthcare (Target Price $2.17) BUY

  • IHH’s 2Q14 and 1H14 earnings were in line with consensus but above our conservative forecasts.. The results reflected IHH’s enlarged and diverse healthcare earnings prowess in all key regions, while a stronger balance sheet and better cashflow should help to support capex and dividend commitments.
  • Pertaining to Acibadem, management said that it will monitor its liquidity position to hedge its cashflows by conserving hard currency receipts from medical travellers to service the debts and interest payments of its non-Turkish Lira denominated loans. Almost all of IHH’s FX losses are translational and unrealised.
  • IHH can now better mitigate the effects of higher staff costs and other inflationary pressures through price adjustments, while it extracts greater operating leverage on the back of higher inpatient admissions from its new and existing hospitals.

By: CIMB Research

Wing Tai (Target Price: $2.09) HOLD 

  • Wingtai’s FY14 core PATMI came in below both our and consensus estimates, at approximately 65 percent of our full-year number. The main culprits were the weaker residential market and cost pressures on the retail segment, both of which are likely to continue to affect performance in the near- and mid-term.
  • Although Wingtai’s fundamentals are expected to stay weak in this period, its balance sheet remains extremely robust, with net gearing at 0.16x.
  • Our Hold rating is maintained as the stock is still quite cheap at ~0.5x P/BV. We tweak our FY15-16 EPS, resulting in a higher target price (at 30 percent discount to RNAV).

By: CIMB Research

 Straco (Target Price:$0.79) SELL

  • After much anticipation, Straco announced its acquisition of the Singapore Flyer, an iconic landmark in Singapore but one that has struggled to keep visitor arrivals from falling since its opening in 2008. We are not optimistic about this acquisition as a quick turnaround is unlikely and the high operating costs and interest cost are likely to be a drag on margins.
  • The operating structure is similar to that of Straco’s aquariums as the bulk of operating costs are fixed; this means that operational efficiencies can only be reaped above a breakeven point which we estimate to be 1.4 million visitors/year.
  • We believe that a turnaround story hinges on 1) stronger visitor arrivals in Singapore, driven by the return of Chinese tourists, 2) channelling tour groups to the Singapore Flyer through its partner, WTS, 3) redevelopment of the area by adding attractions, and 4) better tenant mix. We expect the share price to react negatively to this news, hence our downgrade from add to Reduce. We will turn more positive when visitor arrivals gain traction and bring efficiency gains.

By: CIMB

Ascott Residence Trust (Target Price:$1.33) BUY

  • For 2Q14, ART delivered a 13.8 percent YoY increase in revenue to $88.1 million and 8.3 percent rise in distributable amount to $33.5 million. This was due mainly to incremental contribution from its acquisitions over the past year and stronger performance from its existing properties, especially those in United Kingdom, Spain and Belgium.
  • Looking into 2H14, management expects its portfolio to improve from 1H. We believe a seasonal uplift, coupled with the completion of its asset enhancement initiatives at several of its SRs such as Ascott Raffles Place Singapore, is likely to drive ART’s RevPAU upwards, which stood at $137 (down 3.5 percent YoY) in 2Q14.
  • Beyond this, we understand that plans for the upgrading of Somerset Ho Chi Minh City and several properties in China are currently underway, which should also command better daily rates post renovation. We now tweak our FY14 projections to factor the most recent results.

By: OCBC Research

King Wan Corporation (Price Target:$0.71) BUY

  • King Wan Corporation Ltd (King Wan) released its 1Q15 results with a 908 percent surge in net profit to $25.9 million. The surge was due to a one-time gain of $24.1 million from the disposal of the Thailand associates. Taking into account the related expenses for the disposal, King Wan’s net profit for 1Q15 would have been $3.7million.
  • The company has secured orders worth $25.5 million for 1Q15, bringing the order book to $164 million. The orders are expected to provide earnings visibility till FY17. Based on King Wan’s recent order margins, we expect gross margin for these orders to be around 18 percent.
  • With contribution from its other businesses, we are confident that King Wan can maintain a 6 percent dividend yield. Accordingly, we maintain recommendation at Increase Exposure with intrinsic value adjusted upwards to $0.71.

By: Voyage Research

Driven by passion in investments, Jonathan’s research emphasizes in incorporating critical thinking with value and income investing surrounding companies listed in Singapore. Well trained in banking and finance, Jonathan has intern experience at various industry players including GIC Pte Ltd.

Please click here for more information about this author.

IHH Healthcare  -- -- --   
Business: One of the largest listed private healthcare providers in Asia and worldwide. [FY18 Turnover] Parkway Pantai (64.7%), Acibadem Hldgs (31.9%), IMU (2.2%), PLife REIT (1.2%).

Insight: May-19, 1Q19 revenue rose 27.6% as a result of the... Read More
Wing Tai Hldgs  2.050 +0.01 +0.49%   
Business: Singapore-based property developer and lifestyle company. [FY18 Turnover] Development properties (51.5%), retail (36.5%), investment properties (9.6%), others (2.4%).

Insight: Feb-19, 1H19 revenue rose 7.1% to $193.9m largely ... Read More
Straco Corp  0.720 -0.020 -2.70%   
Business: Co's core biz is the devt of tourism related pjts in PRC. [FY18 Turnover] Aquariums (68.7%), giant observable wheel (27.1%), others (4.2%).

Insight: May-19, 1Q19 revenue jumped 30.8% to $24.6m as 1Q1... Read More
Ascott Residence Trust  1.370 -0.010 -0.72%   
Business: REIT invests in income-producing real estate assets which are used or predominantly used, as serviced residences, rental housing properties and other hospitality assets.

Insight: Apr-19, 1Q19 revenue increased 3% due to stronger ... Read More
King Wan Corp  0.084 +0.005 +6.33%   
Business: Integrated building services and mechanical and electrical (M&E) engineering specialist. [FY19 Turnover] Plumbing & sanitary (58.6%), electrical (36.3%), toilet rental (3.3%), investment holdings (1.8%).

Insight: May-19, FY19 revenue dipped 3.1% to $79.3m. Corres... Read More


Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.