Compiled by Stephanie Luo
M1 | BUY
AUG 18 CLOSE: $1.805
TARGET PRICE: $1.98
UOB Kay Hian, Aug 18
M1 has to contend with higher handset subsidies caused by the launch of iPhone 8 and 8 Plus in Sept 17 as well as stiffer competition with the impending entry of TPG Telecom next year.
M1 remains a takeover target should the industry consolidate from four to three players. Revenue contributions from fixed services have increased 21.5 per cent year-on-year and accounted for 15.2 per cent of service revenue in Q2 2017.
Valuations are near levels during the aftermath of the global financial crisis in 2009.
CAPITALAND MALL TRUST | BUY
AUG 18 CLOSE: $2.13
TARGET PRICE: $2.20
OCBC Investment Research, Aug 18
Century Square, which is located in Tampines and managed by AsiaMalls Management, is undergoing a refurbishment exercise that will cost S$60 million.
This will result in temporary closure of the mall, and the reopening is expected in H2 2018.
We believe CapitaLand Mall Trust's Tampines Mall will be a beneficiary of this event in the near term, given its close proximity to Century Square.
Once Century Square reopens, there will be increased competition again.
Notwithstanding this, we expect Tampines Mall to remain resilient, given its strategic location and large residential catchment.
GOLDEN ENERGY AND RESOURCES | BUY
AUG 18 CLOSE: $0.385
TARGET PRICE: $0.78
KGI Research, Aug 17
Golden Energy and Resources (Gear) successfully obtained permission to raise coal production at its BIB mine to 12 million tonnes in FY17.
Current price assumes long-term coal price of US$34 (S$46) a tonne and a US$22 a tonne cash cost.
This price would mean a 20 per cent discount to the eight-year 4,200 kcal Indonesian coal price average and a US$22 a tonne cash cost (it achieved US$21 in H1 2017 and US$20 in FY16) to arrive at Gear's current share price.
These assumptions undervalue Gear's long-term potential given its free cash flow generating capabilities and track record in consistently increasing its coal production every year over the past five years.
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.