Compiled by Kenneth Lim
SEMBCORP MARINE | REDUCE
TARGET PRICE: $1.55
JULY 31 CLOSE: $1.685
Phillip Securities Research, July 31
Sembcorp Marine's cost-cutting measures will enable the group to alleviate the pressure from the weak operating environment in the near term.
However, we believe it will take time for the group to replenish the order book, as well as get more work flows coming in. The weak performance may continue into H2 2017.
We revise down the FY17 estimated earnings per share from the previous 6.6 Singapore cents to 5.4 Singapore cents, due to weaker-than-expected performance in H1 2017.
Based on updated blended forward 12-month price-earnings ratio of 28.5 times, we derive an updated target price of $1.55 (previous target price: $1.58).
This implies a downside of 8.6 per cent from the last done price of $1.695, and we downgrade our call from "neutral" to "reduce".
IFAST CORP | BUY
TARGET PRICE: $1.26
JULY 31 CLOSE: $1.07
DBS Group Research, July 31
Share price for iFast has surged 80 per cent since our upgrade in end-April 2017, after a strong set of Q1 2017 results.
It continued to do well, delivering another set of positive results in Q2 2017.
Despite the higher operating expenses, especially in China which is in a start-up phase, we believe that iFast can now reap the fruit of labour, on its consistent efforts to broaden the range and depth of its investment products and services in the last few years.
iFast offers investors a unique investment proposition as a direct proxy for the wealth management industry and a platform into digital finance.
CDL HOSPITALITY TRUSTS | BUY
TARGET PRICE: $1.70
JULY 31 CLOSE: $1.60
RHB Research, July 31
Q2 2017 results are in line. Management sounded cautiously optimistic on the potential recovery of Singapore's hospitality sector, with room rates close to bottoming out.
The performance of its New Zealand hotel continued to shine, with a staggering 94 per cent year-on-year increase in net property income.
Weakness was seen in its Maldives and Japan hotels due to competitive pricing pressures. Looking ahead, its latest European hotel acquisitions should contribute positively, as well.
As such, we maintain our "buy" call and $1.70 target price (7 per cent upside), as we expect the hospitality sector to recover strongly next year. CDL Hospitality Trusts is our hospitality sector's Top Pick.
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