Compiled by Stephanie Luo, The Business Times
SHENG SIONG GROUP | BUY
OCT 27 CLOSE: $0.94
TARGET PRICE: $1.19
DBS Group Research, Oct 27
Despite the opening of Amazon Prime, there was no let-up operationally. In fact, margins and sales parameters grew stronger year-on-year (y-o-y).
This was partly due to closure of the Verge store, which was performing weaker than the rest of the stores.
Three more stores (Woodlands Street 12, 11,800 sq ft; Edgedale Plains in Punggol, 3,100 sq ft; and Anchorvale in Sengkang, 5,100 sq ft) are due to open in Q4 17. Its new store in China is due to open by the end of the year. Our earnings forecast is largely unchanged.
SAMUDERA SHIPPING | BUY
OCT 27 CLOSE: $0.25
TARGET PRICE: $0.38
KGI Securities (Singapore), Oct 27
Q3 17 net profit came in at US$500,000 (S$685,000) compared to losses of US$3.8 million in the year-ago period. Revenue in the quarter rose 14 per cent y-o-y to US$70 million driven by an increase in container volumes and higher freight rates.
Results came in below our expectations. The company is riding on the positive industry tailwinds of improving freight rates this year and continues to generate strong positive free cash flows (FCF Q2 17: +US$5 million). Furthermore, it is trading at a 60 per cent discount to its net book value despite the recent sale of two of its vessels above book value.
GENTING SINGAPORE | ADD
OCT 27 CLOSE: $1.245
TARGET PRICE: $1.35
CIMB, Oct 26
Genting Singapore is scheduled to announce its Q3 17 results on Nov 6. We estimate Q3 17 adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) is $285.1 million on the back of y-o-y uplift in VIP and mass gross gaming revenue (GGR) and Genting Singapore's strong cost control efforts.
MBS's sustained VIP rolling chip y-o-y growth implies that the return in VIP volumes to Singapore was sustained, supporting our VIP volume growth thesis for Genting Singapore. A key focus during its results release will be its ability to maintain market share, especially in the mass market space; and its efforts to keep the low VIP discounts and rebates that led to improved GGR in Q2 17.
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