SUNNINGDALE TECH LTD | ADD
TARGET PRICE: $2.19
MAY 15 CLOSE: $1.835
CIMB Research, May 15
We raise FY17-19 forecast core earnings per share forecasts by 33.5 percent to 42.2 per cent as we adjust for gross margin expansion driven by the successful cost reduction initiatives.
Downside risks remain unfavourable exchange rates and a pullback in customers' orders.
We maintain our "add" call with a higher target price of $2.19, based on a 1.11 times - return on equity (ROE): 9.6 per cent - FY17 price-to-book ratio multiple, versus the previous 0.8 time P/BV multiple as ROEs improve.
FAR EAST HOSPITALITY TRUST | BUY
TARGET PRICE: $0.66
MAY 15 CLOSE: $0.605
DBS Group Research, May 15
We upgrade Far East Hospitality Trust (FEHT) to "buy" from "hold" with a revised target price of $0.66.
We believe 1H-FY17 will mark the cyclical low in FEHT's earnings but expect a recovery in the market from next year onwards and potential use of its strong balance sheet for acquisitions.
THAI BEVERAGE | BUY
TARGET PRICE: $1.10
MAY 15 CLOSE: $0.88
RHB Research Institute Singapore, May 15
Share price corrected by about 3 per cent on Friday on a weak year-on-year performance in Q2 FY17 (September), which was, however, largely in-line with our expectations.
We note that while consumption remains soft since the passing of the King, there were sequential improvements on a quarter-on-quarter basis.
We note that, based on statistics provided by the Bank of Thailand, beer consumption began to normalise in March.
Furthermore, we think there may be a volume boost in Q4 FY17 forecast, as traders stock up prior to the new excise tax hike that is expected to be implemented in September.
Maintain "buy" on ThaiBev and a $1.10 target price.
COGENT HOLDINGS LTD | BUY
TARGET PRICE: $1.18
MAY 15 CLOSE: $0.785
Phillip Securities Research, May 15
In our recent annual general meeting note, we outlined the two ongoing projects on Jurong Island that is to drive the next phase of growth for the group - particularly for the Jurong Island Chemical Logistics Facility, which we estimate will drive earnings growth of more than 40 per cent in FY19 forecast when it becomes operational.
Our target price gives an implied 18.6 times FY17 forecast price-to-earnings multiple and a lower 11.1 times FY19 forecast P/E multiple.
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