Brokers' take

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SEPT 7 CLOSE: $2.64

UOB Kay Hian, Sept 7

Starhub showcased its capabilities in Fixed Enterprise through its Sell-side Day held on Sept 6.

The Fixed Enterprise Group offers cloud and data centres, cybersecurity, IOT (M2M) & robotics, Insights & AI, connectivity, enterprise mobility and managed IT services.

StarHub reaches out to SME customers through the Go Digital initiative and adds value by providing data analytics.

The revamped leadership and acquisition of Accel Systems & Technologies, a cybersecurity consultancy and solutions provider, would strengthen growth at Fixed Enterprise Group.



SEPT 7 CLOSE: $0.92

OCBC Research, Sept 7

With the entrance of Amazon into the local grocery category, this inevitably caused further concerns for local retailers.

While the traditional brick-and-mortar model for supermarkets is relatively stable for now, having an online platform is an increasingly important avenue for growth ahead.

Major supermarket players do have some form of an online platform, but are still optimising their systems to avoid risk of margin erosion and undesirable return on investment.

On the other hand, e-commerce players are considering the addition of retail stores to complement them, such as Amazon's latest acquisition of Whole Foods Market.

Meanwhile, the fresh produce space is still an advantage for traditional players and SSG's planned warehouse extension will be providing more cold storage space.

In addition, the group has a variable cost structure and looks at reducing costs through various ways like automation for efficiency and lowering dependency on manpower, increased direct sourcing and bulk handling to lower input costs.



SEPT 7 CLOSE: $3.26

OCBC Research, Sept 7

Wilmar recently announced two acquisitions including a 50 per cent stake in local chocolate and compounds manufacturer Aalst Chocolate Pte Ltd.

With this acquisition, Wilmar is able to expand their offerings to bakery products and confectionery manufacturers and the JV will work on expanding the business portfolio of chocolate ingredients in Asia.

No financial details were shared and we do not expect material changes to our estimates for now.

The other acquisition was for a 50 per cent stake in Three-A Qinhuandao Food Industries, but no material impact on the group's financial position is expected. We anticipate further developments to be made in line with the group's focus on key markets such as China.

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