UNITED OVERSEAS BANK | REDUCE
TARGET PRICE: $19.20
MAY 2 CLOSE: $22.80
Phillip Research, May 2
Q1 FY17 profit after tax and minority interests of $807 million missed our estimate by 6.7 per cent.
Surprise came from higher-than-expected trading income in Q117. But the quarter-on-quarter growth of 2 per cent in net interest income was in line with our expectations.
Maintain "reduce" with a higher target price of $19.20 pegged at unchanged 0.95 times FY17 forecast profit before price-to-book ratio (excluding preference shares).
FIRST RESOURCES | BUY
TARGET PRICE: $2.15
MAY 2 CLOSE: $1.865
UOB Kay Hian Research, May 2
First Resources reported a record-high Q1 fresh fruit bunch (FFB) production in Q1 FY17 on the back of a yield recovery and supported by new mature areas.
FFB nucleus production decreased 18.5 per cent quarter-on-quarter on seasonality but improved significantly year-on-year (YOY).
We are expecting weaker Q1 FY17 quarter-on-quarter earnings due to weak production and a sharp decline in palm kernel prices but a better YOY performance on stronger FFB production and a jump in crude palm oil prices.
JAPFA | REDUCE
TARGET PRICE: $0.58
MAY 2 CLOSE: $0.595
CIMB Research, April 28
It pained us to go through this set of results - Q1 FY17 core net profit (-37 per cent year-on-year) missed expectations, only forming 14 per cent/12 per cent of our/Bloomberg consensus full-year forecasts.
The problem areas: weak broiler prices in Indonesia and swine prices in Vietnam.
While we were already expecting a weak showing in Vietnam, the fall into losses came as a rude shock. Outlook in Vietnam remains poor, and losses could continue.
IFAST CORP | BUY
TARGET PRICE: $0.94
MAY 2 CLOSE: $0.765
DBS Group Research, April 28
Since our downgrade to "hold" call in February, iFAST's share price has dropped about 30 per cent. With a difficult 2016 behind us, boosted by encouraging Q1 2017 results, we upgrade iFAST to "buy".
We expect earnings growth of 20 per cent for FY17 forecast, and another 15 per cent for FY18 forecast, as iFAST reaps the fruits of labour on its consistent efforts to broaden the range and depth of its investment products and services.
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