JAPAN FOODS HOLDING LTD | BUY
APRIL 17 CLOSE: S$0.45
TARGET PRICE: S$0.56
KGI RESEARCH, APRIL 17
Japan Foods has consistently expanded its network of restaurants since its listing with sales turnover growing at a compound annual growth rate (CAGR) of 9.4 per cent from FY2009 to FY2016.
This was achieved through prudent restaurant portfolio management, where Japan Foods converted underperforming outlets at retail malls to another brand that better suited the location and, thus, improved same-store sales.
The firm has consistently handed out dividends annually since listing in 2009 and its dividends per share grew at a CAGR of about 39 per cent from FY2009 to FY2016. We believe Japan Foods will be able to increase its dividends in line with earnings growth over the near term.
SINGAPORE PRESS HOLDINGS | SELL
TARGET PRICE: S$3.41
APRIL 17 CLOSE: S$3.41
OCBC RESEARCH, APRIL 17
SPH announced that Q2FY17 profit after tax and minority interests dipped by 1.2 per cent year-on-year (YoY) to $53.5 million, while group recurring earnings on an operating level declined 22.2 per cent YoY to $53m. The share of results of associates and joint ventures rose $3.1m YoY.
Group operating revenue fell 8.2 per cent YoY to $238m mostly due to weaker contributions from the media business which fell 11.9 per cent YoY. Revenues from display and classified ads fell 17.5 per cent and 14.4 per cent YoY respectively.
Given the uncertain economic outlook and the continuing disruption of the media industry, we expect conditions to remain challenging for the group's media business ahead.
SINGAPORE O&G | BUY
TARGET PRICE: S$1.53
APRIL 17 CLOSE: S$1.36
UOB KAY HIAN RESEARCH, APRIL 17
With the recent incorporation of a new paediatrics subsidiary, SOG Children (Paediatrics), we expect paediatrics service to commence in H217, via organic expansion or a potential acquisition.
We view the move positively as paediatrics is a complementary vertical offering to SOG's value chain, supported by a strong and growing O&G pillar.
Meanwhile, the dermatology and cancer segments continue to register good performance and will likely see stronger momentum in 2017.
Compiled by Stephanie Luo, The Business Times
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