Recent Reports

  • Nam Lee Pressed Metal Industries – Higher total dividend vindicates yield-play thesis

    Richard Leow | Phillip Securities Research Pte Ltd | Nov 29, 2018
    • Revenue was 5.1% lower than forecast, but PATMI was in line
    • 2 cents final ordinary dividend (FY17: 1 cent); and 0.5 cent special dividend (FY17: 1 cent) proposed
    • Total full year dividend of 2.5 cents is higher than 2 cents for FY17; and gives a 6.7% yield based on last close price of 37.5 cents
    • Nam Lee’s 6.7% yield on an unlevered balance sheet is superior to the STI and S-REIT Index yields of 4.2% and 6.2% respectively
    • Ceasing coverage due to reallocation of internal resources
  • Thai Beverage PLC – A hangover from every beverage

    Paul Chew | Phillip Securities Research Pte Ltd | Nov 28, 2018
    • 4Q18 revenue and net profit were below expectations by 17% and 38%. Spirits volume collapsed and beer business swung into a net loss in weighted down by falling revenues and surging interest expense.
    • Maintain REDUCE with lower SOTP-derived TP of S$0.57 (previously S$0.62) as we trim our FY19e earnings by 7%.
  • Geo Energy Resources Ltd – A production miss

    Chen Guangzhi | Phillip Securities Research Pte Ltd | Nov 27, 2018
    • 3Q18 revenue and net profit missed expectations due to lower production volume and higher cash cost. 4Q18 coal price outlook is weak.
    • Capital injection and coal prepayment from Macquarie Bank.
    • We lower forecasted sales volume to 7.5mn tonnes (previously 10mn tonnes) and revise ASP to US$41.5/tonne (previously US$40.5/tonne) in FY18. Meanwhile, we raise our cash cost to US$31.5/tonne (previously US$30.5/tonne). Accordingly, FY18e EPS is cut to 1.7 US cents (previously 2.5 US cents). Based on an unchanged forward PER of 10x (average of regional peers) and the exchange rate (USD/SGD) of 1.37, we maintain our BUY recommendation but with a lower target price of S$0.245 (previously S$0.34).
  • Golden Energy and Resources Ltd – Production on track but some price headwinds

    Chen Guangzhi | Phillip Securities Research Pte Ltd | Nov 27, 2018
    • Revenue and net profit missed our expectations due to higher operating expenses and correction in coal prices.
    • Production surged 66% while coal prices slightly dropped.
    • Multiple upward pressures on cash cost. We lower FY18e EPS to 2.7 US cents (previously 3.1 US cents) due to a higher than expected cash cost and a lower projected ASP. Based on unchanged peer average forward PER of 10x and the FX rate (USD/SGD) of 1.36x, we reiterate our BUY recommendation with a lower target price of S$0.36 for FY18.
  • Singapore REITs Monthly – Monthly Tracker: November 2018

    Tara Wong | Phillip Securities Research Pte Ltd | Nov 20, 2018
    • FTSE S-REIT total return declined 4.9% YTD. Weakness across all sub-sectors – save for hospitality over the past month – with Frasers Hospitality Trust being the top performer (+5.6% MTD) and Keppel-KBS US REIT being the worst performer (-17.0% MTD).
    • Sector yield spread of 273bps over the benchmark 10-year SGS (10YSGS) yield remains close to the -1 standard deviation (SD) level as at end-October.
    • 3m SOR continued to rise YTD, ending at 1.73% in October.
    • Remain NEUTRAL on S-REITs sector. Sub-sector preferences: Office and Hospitality.
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