SEMBCORP MARINE | ADD
TARGET PRICE: $1.87
SEPT 12 CLOSE: $1.59
CIMB Research, Sept 11
Year-to-date orders touched $270 million as SembMarine announced a US$145 million (S$195 million) hull carry-over works contract from Tupi BV for the FPSO P-68 project.
The hull is an addition to the current contract that SembMarine secured in 2012 from Petrobras for the construction and integration of FPSO P-68.
We are keeping our $1.5 billion order wins target, hoping to hear of more offshore conversion and Gravifloat contracts.
Maintain "add" and target price, still based on 1.5 times 2017 forecast price-to-book value, the average trading band in 1996 to 2003, a period of weak oil prices and pre-rig boom.
GOLDEN AGRI-RESOURCES | HOLD
TARGET PRICE: $0.36
SEPT 12 CLOSE: $0.38
OCBC Investment Research, Sept 12
The Malaysian Palm Oil Board released data on Sept 11 that showed an 8.8 per cent month-on-month rise in Malaysia's palm oil stocks, a 0.9 per cent decline in palm oil production while exports were up 6.4 per cent.
Our view on crude palm oil (CPO) price outlook had been bearish given the higher CPO production expected this year, sustained low oil prices and overall oilseed prices.
We acknowledge Golden Agri's initiatives to support growth for both upstream and downstream segments in the long term.
Overall, in consideration of the nearer term outlook with few catalysts, we keep our "hold" and unchanged fair value estimate of $0.36.
HRNETGROUP | NOT RATED
SEPT 12 CLOSE: $0.74
Maybank Kim Eng Research, Sept 12
HRnetGroup (HRnet) is one of the largest recruitment companies based in the Asia-Pacific outside Japan, operating in 10 cities and serving over 2,000 clients across eight industry segments.
With close to $280 million in net cash after its recent initial public offering, it is well positioned for the next phase of growth from overseas markets by tapping into mergers and acquisitions (M&A), and strategic partnership opportunities.
HRnet trades at 17.8 times earnings with an earnings per share growth outlook of 8 per cent and 21 per cent for the coming FY2018 and FY2019 years.
Key company-specific risks in our view are M&A execution, change to government grants and currency exposure.
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