Super Group – Affected by intense competition 3Q
results disappointed, Downgrade to HOLD with TP
$3.97
SembCorp Industries – Utilities delivered another
outstanding quarter, raise TP to $5.70
Affected by keen competition,Super Group’s 3QFY13
revenue growth came in flat yoy at 2% to reach S$133m
while earnings declined 17% yoy S$18.7m. Operating
margins were 1.4ppt lower vs 3Q12. 9m13 earnings now
account for 66% of our full year forecast. We believe
more intense competition will likely sustain and we expect
growth expectations hereon to dampen. Super’s first
mover advantage in Myanmar is eroding now that other
competitors such as Nestle are gaining traction there.
Other Asean markets have also become more challenging
especially in Indonesia and the Philippines. Given the
higher operating cost structure, and more intense
competition, we revise our FY13F/FY14F/FY15F earnings
by 17%/26%/28%. Downgrade to HOLD with a lower
$3.97 TP.
SembCorp Industries’ 3Q13 PATMI of S$254.4m (+40%
y-o-y, 54% q-o-q) exceeded our S$210m estimates as
Utilities delivered another outstanding quarter. 9M13
Utilities profits grew 27% y-o-y to S$373m, trumping our
S$372m projection for the full year. SCI upgrades view on
Utilities to show growth from guidance of steady
performance previously in view of the division’s broadbased
strength. We have accordingly revised SCI’s
earnings by -3%/3% for FY13/14F. TP raised to S$5.70,
maintain Buy.
Goodpack 1Q14 (FYE June) net profit grew 7% y-o-y to
US$13.9m, on the back of an 8% increase in revenue.
This forms 24% of our FY14F earnings, largely in line with
our estimate of US$14m for the quarter. Other operating
expenses were higher than expected, but this was offset
by forex gains. We expect Goodpack to deliver US$14-
15m profit (+26-35% y-o-y) in 2Q14. In the near term, we
are hopeful that one of the major autopart contracts will
be finalised. While the long awaited European OEM
contract is pending approval, Goodpack has gained
traction with another US-based automotive-related
supplier. We have raised our terminal growth rate
assumption by 1ppt to 2%. As such, we lift our TP to
S$2.25, which translates to 17x FY14F PE and 2.6x P/BV,
in line with its 10-year historical mean. Maintain Buy.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,783.1 21.3 0.1
S&P 1,771.9 1.3 0.1
NASDAQ 3,919.8 0.6 0.0
Regional Indices
ST Index 3,186.7 9.5 0.3
ST Small Cap 539.3 (0.4) (0.1)
Hang Seng 23,069.9 325.5 1.4
HSCEI 10,582.9 192.2 1.8
HSCCI 4,489.3 38.1 0.9
KLCI 1,804.2 (0.3) (0.0)
SET 1,405.9 0.9 0.1
JCI 4,441.7 (35.0) (0.8)
PCOMP 6,265.2 (90.0) (1.4)
KOSPI 1,991.5 14.2 0.7
TWSE 8,182.6 (47.0) (0.6)
Nikkei 14,269.8 183.0 1.3
STI Index Performance
Singapore
Total Market cap (US$bn) 587
Total Daily Vol (m shrs) 1,943
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
11 Nov
Target Price
($)
ST Engineering Buy 4.05 4.90
ComfortDelgro Buy 1.90 2.19
OCBC Bank Buy 10.45 12.40
Singapore Airlines Buy 10.29 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
11 Nov
Target Price
($)
Ezion Holdings Buy 2.01 2.60
CSE Global Buy 0.97 1.07
Frasers Centrepoint Trust Buy 1.825 2.14
Yoma Strategic Holdings Buy 0.76 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Asia Pay TV Trust’s 9M13 asset EBITDA of S$150.3m was in
line with expectations and comprised 75.0% of its FY13F
guidance. Weak broadband revenue was slightly behind the
guidance (71.8% of full year) offset by higher Basic Cable TV
and Digital Cable TV revenue. The Trustee-Manager reaffirmed
the distribution guidance of 4.13 Scts for 2H13 to
be paid in early 2014. The Trustee-Manager has also reaffirmed
distribution guidance of 8.25 Scts for FY14F. At the
current price APTT offers 10.9% yield for FY14F. In our base
case scenario, we project distribution yield to rise to 11.3% in
FY15F. Even in the worst case scenario of APTT expanding
outside its existing regions resulting in higher capex, we
estimate that APTT can easily pay 9.5% yield in FY15F and
beyond. No change to our $0.97 TP and Buy
recommendation.
United Envirotech reported weaker-than-expected 2Q14
earnings mainly due to higher operating expenses and
interest costs. 2Q14 net profit was S$7.4m (-15% y-o-y,
+24% q-o-q) on sales of S$51.9m (-4% y-o-y, +18% q-o-q).
At half time, sales and gross profits met 50% and 49% of
our FY14 forecasts respectively. However, H1 net profit only
amounted to 30% of FY14F forecast. Finance costs exceeded
expectation, likely due to recent MTN issuance. Our forecast
and TP of S$0.98 are under review.
Japan Foods Holding is proposing bonus issue on the basis of
one (1) Bonus Share for every two (2) existing shares held.
The proposed bonus issue is to increase the issued share
capital base of the company to reflect the growth and
expansion of the Group’s business, to give due recognition to
the Shareholders for their loyalty and continuing support and
also to encourage trading liquidity of the shares.
Cordlife Group has signed an agreement with China Cord
Blood Corporation (CCBC), to jointly explore and develop
new services based on cellular technologies. With this
collaboration, Cordlife will be able to leverage on CCBC’s
resources to expand into new services, and CCBC will be able
to leverage on Cordlife’s experience in developed markets in
Asia.
Technics Oil & Gas is proposing to acquire 74% stake in
Vigahs Marine Technologies, which is in the business of
repairing and building of ships, tankers and other oceangoing
vessels, for S$7.2m.
No comments:
Post a Comment