Compiled by Andrea Soh
IFAST CORPORATION | CEASING COVERAGE
DEC 26 CLOSE: $0.89
RHB Research, Dec 22
Incorporated in 2000 as Fundsupermart Holdings Pte Ltd, it was renamed to iFAST Corp (iFAST) in 2003.
The company has an Internet-based distribution and administration platform, with custody of $5.13 billion worth of assets under administration (AUA).
The company is an investment products distributor and administration platform, which also provides a comprehensive range of services.
With the earnings recovery in line with our estimates and bullish sentiment in the equity markets, iFAST's outlook looks positive.
However, with continued losses projected at its China operations, coupled with the stock's rich valuations, we feel that the upside would be capped.
That said, we are ceasing coverage on this counter due to a redistribution of internal resources. Our previous recommendation was "neutral", with a TP of $1.01.
GLOBAL INVACOM GROUP
| CEASING COVERAGE
DEC 26 CLOSE: $0.145
RHB Research, Dec 22
Global Invacom Group (Ginva) is an investment holding company that engages in the research & development (R&D), design, and supply of integrated satellite communications equipment in the US, Europe, Asia, and internationally.
Ginva was founded in 1985 and is headquartered in Singapore.
Ginva has bounced back into profitability in 1Q17, driven by its US subsidiary and sales from its next generation of Low Noise Block (LNB) products.
With increased volumes and wider margins from its new-generation products that are to be incrementally sold throughout the year, we expect its revenue and margins to keep on improving. This is as the company continues to roll out new-generation equipment.
However, we are ceasing coverage on this counter due to internal resource reallocation, coupled with the low institutional interest of the stock.
Our previous recommendation was "buy", with a $0.26 TP.
SEMBCORP MARINE | ADD
DEC 26 CLOSE: $1.87
TARGET PRICE: $2.49
CIMB Research, Dec 26
SMM's net gearing could improve to less than 1x with the US$500m (S$671m) sale of a completed semi-submersible rig, West Rigel.
The price is at a 12 per cent discount to the original contract price.
SMM will incur a S$24 million loss from the sale and the proceeds will be split based on 23 per cent (North Atlantic) and 77 per cent (SMM) under the joint-asset agreement.
More importantly, we believe this represents the return of drilling activities in deeper waters at the current oil price.
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