Business

Brokers' take

Compiled by Melissa Tan,

The Business Times

SUNNINGDALE TECH | HOLD

APRIL 7 CLOSE: $1.79

TARGET PRICE: $1.83

UOB KAY HIAN, APRIL 7

The M&A (mergers & acquisitions) fever in the precision engineering space continues with Fisher Tech's recent announcement of a possible transaction.

We downgrade Sunningdale to "hold" as the share price has done enormously well, returning 29 per cent since our initiation in early March 2017.

Sunningdale remains a prime M&A target, given its substantial free cash flow and solid balance sheet.

Our target price implies a historical 2016 P/B (price-to-book) ratio of 1.0x.

SINGAPORE MYANMAR INVESTCO | BUY

APRIL 7 CLOSE: $0.58

TARGET PRICE: $0.97

OCBC INVESTMENT RESEARCH, APRIL 7

Singapore Myanmar Investco (SMI) announced that it will start retail and F&B (food and beverage) operations in Junction City, an integrated development in Yangon, Myanmar.

SMI targets to open up to 10 retail brands and F&B concepts. With the addition of this development, we reiterate that SMI offers prime exposure to Myanmar's fast-growing consumer and tourism sectors.

MM2 ASIA | ADD

APRIL 7 CLOSE: $0.545

TARGET PRICE: $0.60

CIMB, APRIL 6

As the only company with combined expertise of concert production and promotion in Singapore, Unusual offers creative input, design and technical solutions, as well as logistics coordination to artistes and their management companies.

Unusual is also keen to grow inorganically by targeting downstream services such as ticketing platforms and venue management, as well as create its own IPs in the form of musicals and format events. We see potential collaboration opportunities with mm2 in this area.

Mm2 recently announced its partnership with StarHub and Astro to produce Singapore/Malaysia versions of The Voice with an estimated $5 million budget.

The fourth instalment of the popular local movie franchise Ah Boys to Men is also scheduled for filming by Q4 2017. We raise our TP to $0.60 as we adopt sum-of-the-parts (SOP) valuation (previously 22x P/E, sector average) to better reflect the various business segments.

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.

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