Business

Brokers' take

Compiled by Claire Huang, The Business Times

UOL GROUP | BUY

NOV 10 CLOSE: $8.75

TARGET PRICE: $9.85

Maybank Kim Eng, Nov 10

No surprises from its Q3 2017 operating performance - consolidating UIC as a subsidiary led to a large one-off gain booked in the quarter.

Hotels held by Marina Centre Holdings are now marked to market, and some development earnings have been front-loaded as part of the revaluation exercise.

We continue to like UOL as a key beneficiary of the impending rebound in Singapore's property market. We raise our revalued net asset valuation (RNAV) estimates to $10.95 to incorporate Maybank Kim Eng's latest target price for United Overseas Bank.

This lifts our target price to $9.85, based on an unchanged RNAV discount of 10 per cent. Maintain "buy".


FOOD EMPIRE HOLDINGS | BUY

NOV 10 CLOSE: $0.705

TARGET PRICE: $1.00

RHB, Nov 10

Food Empire's 9M 2017 core profit after tax and minority interest of US$15.8 million (S$21.4 million) exceeded our and the street estimates.

As oil prices improve, we believe this would bode well for the economies where the company's core markets are.

Also, its new business units - the Vietnam market and food ingredients - continue to mature. This should lead to lower marketing expenses and improved profitability, moving forward.

Reiterate "buy", with a higher target price of $1, from $0.95, 52 per cent upside, pegged to 18 times FY18 forecast core price-to-earnings ratio.


SATS | BUY

NOV 10 CLOSE: $5.01

TARGET PRICE: $6.00

UOB Kay Hian, Nov 10

Q2 FY18 earnings were in line with our estimate but beat street estimate, with the bulk of growth coming from joint ventures and associates, underpinned by organic growth as well as recent acquisitions.

On a normalised basis, we estimate that operating profit would have risen by 7.5 per cent year on year in Q2 FY18.

But we are more excited by Sats' upcoming joint venture with Turkish Airlines, which will give it exclusive catering rights to the airline at what would be the largest kitchen at the largest airport.

Sats deserves a re-rating. Maintain "buy" with a higher target price of $6.00.

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