THAI BEVERAGE | BUY
MARCH 31 CLOSE: $0.94
TARGET PRICE: $1.09
UOB KAY HIAN RESEARCH, MARCH 31
We value Thai Beverage (ThaiBev) using sum of the parts, deriving a target price of $1.09.
The major part of ThaiBev's value comes from the spirits business which accounted for 73 per cent, while the beer business accounted for 15 per cent of our valuation.
Its valuation remains attractive at the current level with its FY2017 forecast price-earnings ratio of 20.4 times being lower than its global peers'.
We expect ThaiBev to post a 10 per cent revenue compounded annual growth rate in FY2016-19, driven by the beer business.
SINGTEL | BUY
MARCH 31 CLOSE: $3.92
TARGET PRICE: $4.25
OCBC INVESTMENT RESEARCH, MARCH 31
We remain positive over Singtel's growing exposure to high-growth areas - cyber security, digital marketing and data analytics.
According to market watcher Gartner, worldwide spending on information security is expected to grow 7.6 per cent year on year to US$90 billion (S$125.7 billion) this year and reach US$113 billion by 2020.
Gartner also expects worldwide business intelligence and analytics market to grow 7.3 per cent year on year to US$18.3 billion this year, and reach US$22.8 billion by the end of 2020.
According to Gartner, the top three specific digital technologies that are expected to have the most potential to transform organisations over the next five years are advanced analytics, Internet of Things and digital security.
Hence, we believe Singtel is well poised to benefit from these trends through its exposure to cyber security unit, digital marketing entity and advanced analytics and intelligence.
UOL GROUP | ADD
MARCH 31 CLOSE: $6.97
TARGET PRICE: $7.96
CIMB RESEARCH, MARCH 30
We reiterate our "add" rating on UOL post-update visit with management. Residential sales are still well received, in tandem with the improved market sentiment. Meanwhile, recurrent income from rental, hotel operations and dividend income, accounting for 86 per cent of FY16 profit before interest and tax, will continue to provide a stable income base.
Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.