– 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 DMG & Partners Research Pte Ltd (Reg No 200808705N) Kuala Lumpur Hong Kong Singapore Malaysia Research Office RHB Research Institute Sdn Bhd Level 11, Tower One, RHB Centre Jalan Tun Razak Kuala Lumpur Malaysia Tel : +(60) 3 9280 2185 Fax : +(60) 3 9284 8693 RHB OSK Securities Hong Kong Ltd (formerly known as OSK Securities Hong Kong Ltd ) 12th Floor World-Wide House 19 Des Voeux Road Central, Hong Kong Tel : +(852) 2525 1118 Fax : +(852) 2810 0908 DMG & Partners Securities Pte Ltd 10 Collyer Quay #09-08 Ocean Financial Centre Singapore 049315 Tel : +(65) 6533 1818 Fax : +(65) 6532 6211 Jakarta Shanghai Phnom Penh PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia) Plaza CIMB Niaga 14th Floor Jl Jend Sudirman Kav 25 Jakarta Selatan 12920, Indonesia Tel : +(6221) 2598 6888 Fax : +(6221) 2598 6777 RHB OSK (China) Investment Advisory Co Ltd (formerly known as OSK (China) Investment Advisory Co Ltd ) Suite 4005, CITIC Square 1168 Nanjing West Road Shanghai 20041 China Tel : +(8621) 6288 9611 RHB OSK Indochina Securities Limited (formerly known as OSK Indochina Securities Limited) No 1-3, Street 271 Sangkat Toeuk Thla, Khan Sen Sok Phnom Penh Cambodia Tel: +(855) 23 969 161 Fax: +(855) 23 969 171 Bangkok RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL) 10th Floor, Sathorn Square Office Tower 98, North Sathorn Road,Silom Bangrak, Bangkok 10500 Thailand Tel: +(66) 862 9999 Fax : +(66) 108 0999