Compiled by Stephanie Luo
WILMAR INTERNATIONAL | HOLD
AUG 11 CLOSE: $3.20
TARGET PRICE: $3.66
OCBC Investment Research, Aug 11
Wilmar's 2Q17 revenue increased 13.2 per cent year-on-year (YOY) to US$10.6 billion (S$14.4 billion), driven by stronger commodity prices as well as higher sales volume from oilseeds and grains, and sugar.
Net profit was US$60.2 million versus a loss of US$220.1 million in 2Q16 due to one-off losses, while core net profit was US$37.3 million. Despite better production volume, its tropical oils segment's merchandising and processing businesses faced a challenging environment, which resulted in lower profits and profit-before-tax margin at a low.
CITYNEON HOLDINGS | REJECT OFFER
AUG 11 CLOSE: $0.94
TARGET PRICE: $1.28
UOB Kay Hian, Aug 11
Cityneon's board of directors despatched the mandatory unconditional general cash offer document for all shares of Cityneon at $0.90/share yesterday.
We recommend that minority shareholders reject the offer as it is at a deep discount to our target price of $1.28.
We are of the opinion that the offerer (Lucrum 1) intends to keep the public listing status as it would allow Cityneon easier access into capital markets in the event of any merger and acquisition opportunities.
Furthermore, the offer price of $0.90 represents a 4.3 per cent discount to Cityneon's last traded price. It does not adequately reflect the fair value of Cityneon given the explosive 2016-19 earnings growth potential of the company.
CENTURION CORP | HOLD
AUG 11 CLOSE: $0.545
TARGET PRICE: $0.55
Maybank Kim Eng Research, Aug 10
1H17 core earnings per share beat our estimate, at 71 per cent of our FY17E,thanks to a nine-month lease extension for Westlite Tuas, which contributes a chunky 20 per cent to revenue.
We have not factored in this.
Occupancy for a newer Singapore asset, Westlite Papan, also hit 99 per cent.
Despite a 2 per cent YOY decline in foreign workers with work permits in Singapore last year, Centurion's five worker-accommodation assets kept their occupancy at around 92 per cent.
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