– 29 October 2014 Morning Matters

Transcription

– 29 October 2014 Morning Matters
Strategy, 3029
December
October 2013
2014
Morning Matters – 29 October 2014
OSIM International, CDL Hospitality Trust, ISOTeam, Raffles Medical Group, YuuZoo Corporation
To access today’s reports, please click on the links below:
OSIM International (BUY) - Even Massage Chairs Cannot Defy Gravity - 29 October 2014
CDL Hospitality Trusts (NEUTRAL) - No Signs Of Recovery YTD - 28 October 2014
ISOTeam (BUY) - Expanding Its Suite Of Services - 28 October 2014
Raffles Medical Group (NEUTRAL) - Exhaustion Sets In - 28 October 2014
Scoop of The Day
OSIM’s (OSIM SP) 3Q14 results were a big miss, as earnings fell 27.8% y-o-y to SGD16.4m, partly dragged down by legal costs.
Its 9M14 net profit now makes up 63% of consensus FY14 net profit and it is not likely to achieve earlier forecasts. We are
confident the business remains fundamentally sound, but are cognizant that the operating environment is weak. We keep our BUY
rating, with a lower TP of SGD2.75 (from SGD3.85) derived from a 16.5x FY15F P/E, 22.2% upside.
Analyst: James Koh, +65 6232 3839 / Juliana Cai, +65 6232 3871
Previous Report: OSIM Company Update (BUY) - Favourable Funding Source For Next Growth Phase (27 August 2014)
Other Stories
CDL Hospitality Trusts (CDREIT SP, NEUTRAL, TP: SGD1.76)
No Signs Of Recovery YTD
Results Review
CDL Hospitality Trusts’ 3Q14/9M14 DPU dropped 1.1%/2.4% to 2.61/7.86 cents respectively. We assume coverage with a
NEUTRAL and DDM-derived SGD1.76 TP (from SGD1.63), a 3.5% upside from its current share price. With headwinds facing both
the demand and supply side of the tourism industry not abating, we see limited growth prospects over the next two years for this
stock.
Analyst: Ivan Looi, +65 6232 3841 / +65 6232 3895
ISOTeam (ISO SP, BUY, TP: SGD0.77)
Expanding Its Suite Of Service
Company Update
ISOTeam is acquiring four local companies in a cash-equity deal for c.SGD11m in total. Maintain BUY and SGD0.77 TP, a 54%
upside. The company will fork out SGD4.945m (cash) and SGD5.845m (shares), assuming 11.69m shares are issued at SGD0.50
each. The acquisition should enable it to expand its current suite of services, complementing its core R&R and A&A expertise, and
interior renovation business.
Analyst: Sarah Wong, +65 6232 3883
Previous Report: ISOTeam FY14 Results Review (BUY) - A Phenomenal Year (29 August 2014)
Raffles Medical (RFMD SP, NEUTRAL, TP: SGD4.05)
Exhaustion Sets In
Results Review
Raffles Medical’s 9M14 net profit grew 9% YoY to SGD46m, aided by increased patient load at its clinics and higher in-patient
admission at the hospital. While the group may continue generating strong operating cash flow, we expect FCF to remain negative
in the next 1-2 years, as it builds a medical centre at Holland Village and a hospital building extension in Singapore. In view of
muted earnings growth outlook, downgrade to NEUTRAL with a new SGD4.05 TP (3% upside).
Analyst: Arshath Mohamed +65 6232 3897 / Shekhar Jaiswal +65 6232 3894
While you were sleeping
US Wrap: U.S. markets closed higher on Tuesday as the S&P 500 increased 1.19%, while the Dow Jones Industrial Average and
Nasdaq were up 1.12% and 1.75% respectively. The S&P Case-Shiller Home Price Index reported a 0.2% MoM increase in
housing prices in August, exceeding economists’ expectations for a rise of 0.18%. On consumer confidence, the Conference
Board’s consumer confidence index unexpectedly rose to 94.5 in October from 89.0 in September. This is the index’s highest
reading in seven years. Despite exceeding analysts’ earnings forecast, Facebook showed weakness in its share price. The social
networking company reported a profit of 43 cents a share, outperforming forecasts of 40 cents a share. Its share price tumbled
approximately 8.9% after trading hours. The U.S. 10-year Treasury bond is now yielding 2.30%, up 4 basis points.
See important disclosures at the end of this report
1
29 October 2014
Morning Matters
Chart: Singapore STI Index
Table: Singapore Market Indices
Value
1day
change
1day %
change
YTD %
change
3,400
3,250
Description
Market indices
Straits Times Index
3,212
(14.5)
-0.4%
1.4%
3,200
SG Midcap Index
744
(1.1)
-0.1%
3.2%
3,150
SG Small Cap Index
513
(0.3)
-0.1%
-5.3%
SG Catalist Index
777
(6.6)
-0.8%
-27.7%
222
(0.7)
-0.3%
-1.2%
3,350
3,300
3,100
3,050
3,000
Sector indices
2,950
2,900
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
SG China Index
Aug-14
510
2.9
0.6%
5.8%
SG Healthcare Index
1,185
(12.1)
-1.0%
2.8%
SG O&G Index
638
(4.4)
-0.7%
-17.5%
SG Real Estate Index
742
(4.0)
-0.5%
4.8%
Description
Value
1day
change
STI Futures Oct14
3,210
(14.0)
-0.4%
Baltic Dry Index
1,395
110.0
8.6%
SG REITs Index
761
(1.8)
-0.2%
6.6%
82
0.1
0.2%
SG Technology Index
1,230
1.2
0.1%
432
5.1
1.2%
13.4%
SG Telecom Index
981
0.8
0.1%
1.4%
SG Utilities Index
482
9.5
2.0%
3.1%
WTI crude (USD/bbl)
Gold (USD/oz)
USD/EUR
0.79
1day %
change
SG Consumer Index
-0.03%
USD/JPN
108
0.06%
USD/SGD
1.27
-0.02%
Analysing The News
COMPANY
NEWS
COMMENT
RATING
YUZ (YUZ SP)
YuuZoo Corporation has announced the launch
of its first mobile game Honey Snatch
developed in partnership with Thailand-based
Sandbox, a leading mobile and online game
developer.
The mobile game app has over 5,000
installs with positive player feedback barely
a week after its launch on iTunes, with a
short term retention at 30-40% among the
players.60% of the players play more than
3 minutes each session. We do not have a
rating for the counter at the moment.
NOT RATED
Important Dates
COMPANY
New entitlements:
Tee Land
Cordlife Group
Guocoland Limited
Guocoleisure Limited
FJ Benjamin
Parkson Retail Asia
Olam International
Olam International
Eu Yan Sang
Silverlake Axis
Silverlake Axis
Tee International
ENTITLEMENT DETAILS
Dividend SGD 0.0075 ONE-TIER TAX
Dividend SGD 0.01 ONE-TIER TAX
Dividend SGD 0.05 ONE-TIER TAX
Dividend SGD 0.02
Dividend SGD0.0025 ONE-TIER TAX
Dividend SGD0.025 ONE-TIER TAX
Dividend SGD0.05 ONE-TIER TAX
Dividend SGD0.025 ONE-TIER TAX
Dividend SGD0.022 ONE-TIER TAX
Dividend SGD0.012 ONE-TIER TAX
Dividend SGD0.006 ONE-TIER TAX
Dividend SGD0.005 ONE-TIER TAX
EX-DATE
9 Oct 14
21 Oct 14
24 Oct 14
28 Oct 14
28 Oct 14
3 Nov 14
4 Nov 14
4 Nov 14
4 Nov 14
7 Nov 14
7 Nov 14
10 Nov 14
PAYMENT
3 Nov 14
7 Nov 14
18 Nov 14
17 Nov 14
19 Nov 14
13 Nov 14
13 Nov 14
13 Nov 14
21 Nov 14
27 Nov 14
27 Nov 14
27 Nov 14
29 October 2014
Morning Matters
Recent Stories
To access the following reports, please click on the link:
OSK|DMG: Morning Matters - Scoop of The Day: Raffles Medical - 28 October 2014
OSK|DMG: Morning Matters - Scoop of The Day - Dairy Farm International - 27 October 2014
CapitaCommercial Trust (BUY) - Poised To Benefit From Rental Uplift - 24 October 2014
Dairy Farm Initiating Coverage (BUY) - You Can Come Under My Umbrella - 27 October 2014
Ezra Holdings Results Review (NEUTRAL) - Core Profitability Improves Albeit Slowly - 27 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: 24 October 2014
Ascendas REIT (BUY) - On Steady Footing - 24 October 2014
Cache Logistics Trust (NEUTRAL) - Much Ado About Nothing - 24 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Suntec REIT - 23 October 2014
Keppel Corp (BUY) - Operating Metrics Remain Strong, Selloff Overdone - 22 October 2014
SGX (NEUTRAL) - A Soft Start To FY15 - 22 October 2014
Suntec REIT (BUY) - Another Quarter Of Steady Results - 22 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Keppel Land - 21 October 2014
Keppel Land (BUY) - Value Drivers Remain Intact - 21 October 2014
Mapletree Logistics Trust (NEUTRAL) - Needs More Injections From Sponsor - 21 October 2014
Sembcorp Marine (BUY) - Four FPSOs And Counting - 20 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: CapitaMall Trust - 20 October 2014
CapitaMall Trust (BUY) - Fair Winds And Following Seas - 20 October 2014
Nam Cheong (BUY) - First Diesel-Electric AHTS Sold Out On Launch! - 19 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Keppel REIT - 17 October 2014
Keppel REIT (NEUTRAL) - Expiry Of MBFC 1 And 2 Rental Support Dents DPU - 17 October 2014
M1 Results Review (BUY) - Upwardly Mobile - 17 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Vard Holdings - 16 October 2014
Singapore Press Holdings (SELL) - Print Business Loses Its Edge (16 October 2014)
The Real Estate Pulsebeat - Sep 2014 homes sales reach four-month high - 15 October 2014
Vard Holdings (SELL) - Second Axe To Earnings In a Week - 15 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Trek2000 International - 15 October 2014
Ezion Holdings (BUY) - Oil Prices Hold No Fear For Ezion - 14 October 2014
Lian Beng (BUY) - Kicking Off FY15 With On a Strong Note – 14 October 2014
Sembcorp Marine (BUY) - Largest Contract YTD Worth USD696m – 14 October 2014
Trek 2000 (Initiating Coverage) - Trek’s Toy Story – 14 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Lian Beng - 14 October 2014
OSK|DMG: Morning Matters - Scoop of The Day: Parkson Retail Asia - 13 October 2014
29 October 2014
Morning Matters
Diary of Events
US Data
27-Oct-14
US Data
28-Oct-14
29-Oct-14
US Data
MBA Mortgage Applications (Oct 25)
30-Oct-14
US Data
Initial Jobless Claims (Oct 26)
Continuing Claims (Oct 19)
SG Data
SG Data
SG Data
SG Data
SG Data
SG Results
Raffles Medical Group Q3 14
SG Results
CDL Hospitality Trust Q3 14
Healthway Medical Group Q3 14
OSIM International Q3 14
SG Results
SG Results
Eu Yan Sang Q1 15
Indofood Agri Resources Q3 14
MTQ Corp Q2 15
OCBC Q3 14
Parkway Life REIT Q3 14
UOB Q3 14
SG Results
CapitaLand Q3 14
DBS Group Q3 14
Gallant Venture Q3 14
Hi-P International Q3 14
Jaya Holdings Q1 15
SMRT Corp Q2 15
Soilbuild Construction Q3 14
03-Nov-14
04-Nov-14
31-Oct-14
US Data
US Data
US Data
05-Nov-14
US Data
MBA Mortgage Applications (Nov 1)
06-Nov-14
US Data
Initial Jobless Claims (Nov 2)
Continuing Claims (Oct 26)
SG Data
SG Data
SG Data
SG Data
Automobile COE Open Bid Cat A (Nov 6)
Automobile COE Open Bid Cat B (Nov 6)
Automobile COE Open Bid Cat E (Nov 6)
SG Data
SG Results
SG Results
SG Results
SG Results
Singapore Airlines Q2 15
SG Results
10-Nov-14
11-Nov-14
07-Nov-14
US Data
US Data
US Data
12-Nov-14
US Data
MBA Mortgage Applications (Nov 8)
13-Nov-14
US Data
Initial Jobless Claims (Nov 9)
Continuing Claims (Nov 2)
14-Nov-14
SG Data
SG Data
SG Data
SG Data
SG Data
SG Results
SG Results
SG Results
SG Results
SG Results
US Data
DMG & Partners Research Guide to Investment Ratings
Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage
DISCLAIMERS
This research is issued by DMG & Partners Research Pte Ltd and it is for general distribution only It does not have any regard to the specific
investment objectives, financial situation and particular needs of any specific recipient of this research report You should independently evaluate
particular investments and consult an independent financial adviser before making any investments or entering into any transaction in relation to
any securities or investment instruments mentioned in this report
The information contained herein has been obtained from sources we believed to be reliable but we do not make any representation or warranty
nor accept any responsibility or liability as to its accuracy, completeness or correctness Opinions and views expressed in this report are subject
to change without notice
This report does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities
DMG & Partners Research Pte Ltd is a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between OSK Investment
Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB” which in turn is
a wholly-owned subsidiary of RHB Capital Berhad) and Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group) DMG &
Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited
DMG & Partners Securities Pte Ltd and their associates, directors, and/or employees may have positions in, and may effect transactions in the
securities covered in the report, and may also perform or seek to perform broking and other corporate finance related services for the
corporations whose securities are covered in the report This report is therefore classified as a non-independent report
As of the day before 29 October 2014, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd, do
not have proprietary positions in the subject companies, except for:
a) Nil
b) Nil
As of the day before 29 October 2014, none of the analysts who covered the stock in this report has an interest in the subject companies covered
in this report, except for:
Analyst
Company
a) Nil
b) Nil
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