Compiled by Claire Huang
SING INVESTMENTS & FINANCE | ACCUMULATE
JULY 24 CLOSE: $1.51
TARGET PRICE: $1.67
Phillip Securities Research, July 24
Expect sharp increase in profit after tax and minority interests as net income margin improves on rising rates and provisioning normalises.
Initiate with "accumulate" rating with a target price of $1.67, implying an upside of 18.58 per cent (including FY17e dividends).
CACHE LOGISTICS TRUST | HOLD
JULY 24 CLOSE: $0.89
TARGET PRICE: $0.95
Maybank Kim Eng, July 24
Cache saw sequential improvements in revenue and net property income in Q2-2017 from its sound portfolio reconstitution efforts year to date, as momentum from its Australian expansion helped mitigate weaker fundamentals at its Singapore core.
Looking ahead, the near-term supply outlook for warehouses remains challenging, while a stretched balance sheet could constraint further inorganic growth upside.
We keep our forecasts, "hold" and dividend discount model or DDM-based $0.95 target price unchanged, and prefer Areit (Areit, "buy", target price $2.90) for its Singapore business parks exposure.
CAPITALAND MALL TRUST | HOLD
JULY 24 CLOSE: $2.05
TARGET PRICE: $2.04
UOB Kay Hian, July 24
Negative rental reversions continued in 1H-17, primarily due to Westgate and Bedok Mall, although management remains optimistic on the long-term fundamentals of both malls.
Funan redevelopment is well received with pre-commitments hitting 30 per cent ahead of completion in 2019. Maintain "hold". Target price: $2.04.
TRIYARDS HOLDINGS | HOLD
JULY 24 CLOSE: $0.134
TARGET PRICE: $0.19
OCBC Investment Research, July 24
Triyards Holdings saw a 62 per cent year-on-year drop in revenue to US$30.9 million (S$42m) and a gross loss of US$10.3m in Q3 FY17, marking the first quarter of gross loss that the group incurred since its listing in 2012.
It also suffered a US$45.1m allowance for impairment of assets, leading to a net loss of US$63.3m for the quarter.
The stock is now trading at about 0.25 times book, likely due to concerns over 1) any impact from Ezra; 2) possibility of further write-downs; 3) low new order flow; 4) tight credit situation in general.
We adjust our estimates and rolling forward to FY18 valuations, our fair value drops to $0.19 (0.3 times price-to-book ratio).
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.