The Edge - Brokers' Digest (August 6 - August 12, 2007)
Courtesy of http://my-personal-finance.blogspot.com/
Advance SCT (Aug 2: 94 cents) TP: $1.60
MAINTAIN BUY. Advance SCT recorded a net profit of $7 million in 1H, up from $1.9 million in the earlier corresponding period. This was largely boosted by contributions from its new businesses. The first furnace of its smelter plant started operations towards end 1H and its second furnace is expected to commence production this month. This would further boost FY2007 earnings. The construction of its copper refinery is on track and completion is expected at year-end. Partial contribution from the refinery can be expected from FY2008. We estimate earnings of $21.1 million for FY2007 (EPS: 8.5 cents) and $33.6 million for FY2008 (EPS: 12.4 cents). The 12-month target price is $1.60. - DMG & Partners Research (July 31)
DBS Group Holdings (Aug 2: $22.40) TP: $25.40
MAINTAIN HOLD. Net earnings exceeded our expectations by 3% to $664 million. However, DBS took a one-time impairment charge of $159 million due to lower market valuations of TMB Banks and an allowance writeback of $55 million due to improved market valuations of one of its office properties. Net interest income rose to $1.03 billion due to higher asset volumes and sustained interest margins of 2.21%, despite lower interest rates in Singapore and narrower Prime-Hibor spreads in Hong Kong. DBS declared a quarterly dividend of 20 cents per share. We have increased our earnings estimate for 2007 and 2008 to $2.6 billion and $2.9 billion, respectively. Target price is increased to $25.40, 1.80x FY2008 NAV. - Phillip Securities Research (July 30)
Singapore Post (Aug 2: $1.25) TP: $1.46
MAINTAIN BUY. Revenue and underlying Ebitda grew by 10% y-o-y and 10.5% y-o-y respectively, bolstered by higher revenues and operating earnings in the mail, logistics and retail segments. We are thus raising our full-year net profit forecast by 9%. Domestic mail volume grew 9% y-o-y. Efforts to enhance Singapore's position as a publishing services hub will also increase business volume for SingPost's international mail business. SingPost declared 1Q dividend of 1.25 cents per share. We are forecasting FY2008 dividend per share of 7.3 cents. Reiterate "buy" with a target price of $1.46 (implied FY2008 dividend yield of 5%). - Kim Eng Research (July 31)
Asia Enterprises Holdings (Aug 2: 48.5 cents) TP: 74 cents
BUY (initiating coverage). AEH, one of the largest steel stockists in Singapore, will benefit from the current boom in marine and construction sectors. AEH delivered record net earnings of $15.3 million with a return on asset of 14.2% and ROE of 18.8% in FY2006. It also boasts a net cash position of $18.9 million. It has paid out 32.8% and 40% net profit in FY2005 and FY2006 respectively. We expect AEH to continue its trend of record net earnings. We estimate net earnings of $18.4 million and $23.2 million for FY2007 and FY2008 respectively. At the current price of 48.5 cents, AEH is trading at current and forward PER of 7.9x and 6.2x. The 12-month price target is 74 cents. - DMG & Partners Research (Aug 1)
Jaya Holdings (Aug 2: $1.81) TP: $2.15
UPGRADE TO BUY. The key takeaways from our meeting were: Jaya is now more focused to grow its operations with the new management team, as highlighted by the strong ramp-up in its new building programme; Jaya is back on track to deliver earnings growth; strong balance sheet with unchanged dividend payout ratio of 60%; and some acquisitions could be expected in an effort to grow the businesses further. Jaya is the cheapest oil and gas play with one of the highest dividends yields on the SGX at 5.7%. Our target price is raised to $2.15 based on FY2008-09 blended earnings taking 15x for charter and 12x for shipbuilding contribution. - DBS Vickers Securities (Aug 1)
SMRT Corp (Aug 2: $1.81) TP: $1.52
MAINTAIN SELL.1Q FY2008 net profit rose 38% to $38 million. Growth was supported by stronger MRT revenues, good cost control and improved contribution from non-fare revenues. Rail profits rose 13% on 9% rise in revenues. Bus revenue showed a small profit of $500,000. Non-fare activities continued to improve, with rental profits rising 15% and advertising jumping 38%. We are raising our estimates by 9% to 12% for our forecast period to reflect the stronger results. Our target price of $1.52 is based on our FY2008E fair-value PER of 18x (EPS of 85 cents) for the Singapore market (versus 17x previously). We believe the stock should trade in line with the market, given its higher yield. - Citigroup Research (July 27)
Chartered Semiconductor Mfg (Aug 2: $1.11) TP: $1.09
DOWNGRADE TO SELL. Revenue was down 11.1% y-o-y and flat q-o-q at US$324.3 million ($492.2 million), in line with its guidance of US$317 million to US$329 million and our forecast of US$325.9 million. But it surprised with a US$24.7 million (before accretion to preference shares) net loss versus its guidance of a breakeven in earnings. Given the disappointing 2H outlook, we are pairing our FY2007 revenue estimate by 4.1%, and as 1H net loss (before accretion) came up to US$18.4 million, we now expect Chartered to post a net loss (before accretion) of US$8.9 million. Owing to an uncertainty over its advanced micro devices business, we are reducing our FY2008 estimates. Our fail value is now $1.09 based on 1.3x blended FY2007/08 NTA. - OCBC Investment Research (July 27)
Singapore Airlines (Aug 2: $17.80) TP: $23
OVERWEIGHT. SIA's 1Q2008 (April to June 2007) net profit was $424 million, down 26% y-o-y but 10% above our forecast and 4% above consensus. Excluding exceptional gains in 1Q2007, recurring profit rose 20% y-o-y, driven by sharp rise in passenger yields. Record load factors generated strong pricing power with yields up 8.5%, accelerating from the 3.7% y-o-y rise in 4Q2007; expect capacity constraints until at least 2009. Our one-year forward target price of $23 is based on the range of values from its historical range and its closest peer in Asia and implies a total return of 22% including dividend yield. At our target, SIA would trade at 1.9x FY2008E P/BV and 16x PER. - HSBC Research (Aug 2)
Tee Int'l (Aug 2: 38 cents) TP: 33 cents
DOWNGRADE TO SELL. Revenue grew 27.4% y-o-y to $60 million, with growth coming from the infrastructure, rebuilding and security and control segments. Notwithstanding the poor performances of the security and control and new building and development properties segments, operating profit grew 60.8% y-o-y to $3.4 million. For the full year, shareholders' profit surges 102.4% to $1.98 million. We have raised DCF fair value to 33 cents after taking int account its current development projects and the positive outlook of its engineering segment. Its share price has surged 213.4% since the beginning of th year and we believe that its current market valuation has already run ahead of its fair valuation, which is 42.5% higher than our fair value. - NRA Capital (July 30)
Communitys
Blogs
Forum
Photos
Videos
Chat
Marketplace
Events
Bookmarks
People
Linear Mode
