GEO ENERGY RESOURCES | BUY
TARGET PRICE: $0.45
MARCH 8 CLOSE: $0.275
PHILLIP SECURITIES RESEARCH, MARCH 8
We maintain our forecast of 8.5 million tonnes of coal sales volume with US$37 (S$52)/tonne average selling price (ASP) in FY17. (FY16: 5.5 million tonnes of coal sales with US$33/tonne ASP). The coal price was about US$45/tonne last month.
We slightly revise up our FY17e/FY18e profit after tax and minority interests (Patmi) forecasts to US$41 million /US$58 million (previous: US$39 million/US$56 million).
Based on unchanged price-earning ratio of 11 times and USD/SGD 1.3 times stated in our initiation report, we maintain our target price of $0.45 for FY17.
SHENG SIONG | BUY
TARGET PRICE: $1.21
MARCH 8 CLOSE: $0.94
RHB RESEARCH, MARCH 8
Maintain "buy" and a discounted cash flow (DCF)-derived target price $1.21. We maintain our forecasts and target price.
Moving forward, we think competition in the HDB rental market has begun to ease.
Over the next six months, there will still be five more commercial units up for bidding by the supermarkets.
Management said there are still pockets of areas where Sheng Siong does not have a presence. Hence, we are optimistic there is stil room for Sheng Siong to expand its store count here.
SINGAPORE AIRLINES | HOLD
TARGET PRICE: $10.40
MARCH 8 CLOSE: $9.99
UOB KAY HIAN, MARCH 8
SIA has underperformed in the Straits Times Index over the past three months, but we expect the stock to at least market-perform in the near term due to: a) low valuations and hence lower risk, b) potentially diversionary traffic from China to Singapore, and c) potential cargo recovery on stronger global purchasing managers' index new orders.
In addition, SIA is a better beneficiary of any cargo recovery, given its lower capital cost and fuel hedges.
Maintain "hold". Target price: $10.40. Entry level: $9.90.
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