CLSA downgrades Wilmar International (F34.SG) to Sell from Underperform, lowers its target to $4.95 vs $5.70; “we do not buy into Wilmar’s argument that investors will condone its diversification into property as long as it makes money, the way they excused its investment in bank equities in 2009. We no longer see justification for valuing Wilmar as a pure agri play.”
Posts Tagged ‘clsa’
CLSA cautious on China yards; prefers Cosco vs Yangzijiang
January 6th, 2011 |
No Comments
CLSA says Chinese shipyards’ stellar performance in 2010 will be hard to beat, “and we are cautious into 2011 given the unfavourable bias (relative to the Chinese) towards large containership orders and rising cost inflation.”
The house prefers Cosco (F83.SG) over Yangzijiang (BS6.SG) “as Cosco makes further inroads into the offshore sector while YZJ faces delays.” It says more switching from YZJ into Rongsheng (as it comes out of listing blackout) is possible given the valuation gap between the two.
Tourism, dividends among top Singapore themes – CLSA
January 3rd, 2011 |
No Comments
CLSA identifies 3 themes for Singapore in 2011: “Tourism, Dividends & ’Passport of Choice’- stick with ’em.” Says the impact of tourism is under-appreciated and the sector will be one of the key drivers for the economy in the next five years with world-class attractions and more to come.
STI +1.2% midday; selective stock picking key – CLSA
January 3rd, 2011 |
No Comments
The STI is up 1.2% at 3227.83 midday, with three gainers for every decliner across the broad market, as optimism levels remain strong with many players coming back into the market after the holiday lull.
Volume picks up to 1.13 billion shares worth $758 million. CLSA says selective stock picking is key for 2011, as “market valuation, at 14.5X forward earnings, is nearly one standard deviation above the five-year mean, even as ROE languishes at five-year lows.”
Singapore private home demand may taper off: CLSA
December 21st, 2010 |
No Comments
With current housing affordability in Singapore stretched and close to one standard deviation above mean levels, demand for private homes could taper off if household income doesn’t accelerate in tandem with property prices, says CLSA.
SMRT upgraded to Underperform from Sell by CLSA
December 15th, 2010 |
No Comments
CLSA upgrades SMRT (S53.SG) to Underperform from Sell as the shares are now trading nearer to its $2.05 target.
But it says there are still no catalysts in the short-term. It expects the rail operator’s new Circle Line to take another 3-4 years to breakeven.
“Our checks indicate only a slight increase in daily Circle Line ridership for October and November.”
Jardine Matheson, Jardine Strategic targets raised by CLSA
December 7th, 2010 |
No Comments
CLSA lifts target prices for Jardine Matheson (J36.SG) to US$54 ($70.5) vs US$52 based on 20% discount to NAV, Jardine Strategic (J37.SG) to US$31 vs US$30 on 30% discount to NAV.
Keeps both at Outperform; “steep NAV discounts and low valuation multiples renders the risk-reward positive for these holding companies.” Says earnings prospects hinge on sustainability of growth in Southeast Asia, “which seems plausible at present”.
CapitaMall Trust flat; Buy on recent fall: CLSA
December 3rd, 2010 |
No Comments
CapitaMall Trust (C38U.SG) pares gains, flat at $1.96 vs $1.98 intraday high, with investors digesting 6.5% rise over last 2 days.
Recent gains follow sustained decline from around mid-November on broad market weakness.
CLSA ups Suntec REIT to Buy; favours office exposure
November 30th, 2010 |
No Comments
CLSA upgrades Suntec REIT (T82U.SG) to Buy vs Outperform, raises target price to $1.60. Says, private placement (at 4.0% discount to VWAP) in-line with other recent equity raising discounts of around 5.0%.
“The deal is marginally yield accretive…raising DPU marginally by 1.0%-2.0%. In the long run…the deal is a huge positive as it enables Suntec REIT to acquire one of the key office prime jewels in Singapore.”
Expect little SGX/ASX progress till late Jan: CLSA
November 29th, 2010 |
No Comments
CLSA estimates market giving SGX (S68.SG), ASX (ASX.AU) merger less than one-in-three chance of proceeding, with ASX still at material discount to implied value of proposed bid.
SingTel’s bull case most compelling: CLSA
November 24th, 2010 |
No Comments
CLSA says SingTel (Z74.SG) still offers most compelling risk-reward trade-off, most preferred among Singapore telcos.
In bull case (protects Singapore fixed-line franchise, Optus keeps gaining market share, Bharti’s Zain buy progresses well, Telkomsel’s tower portfolio monetised), SingTel likely worth $3.76, +21% vs current price.
StarHub (CC3.SG) least preferred, “though bulls may be able to rationalise existing positions on basis of only 3.0% downside in bull-case scenario,” which hinges on making early, significant, inroads into SME, corporate segment with NGNBN; StarHub bull case worth $2.59, down 2.6% from current price.
For M1 (B2F.SG) says “hard to get bullish on a stock with a limited product portfolio and the smallest balance sheet among its local peers. Nonetheless, one can construct a scenario with marginal improvement in ARPU,” where M1 worth $2.60, +16.5% vs current. Singtel +1.0% at $3.10, StarHub flat at $2.66, M1 off 0.4% at $2.26.
{jcomments on}
Ezra kept at Buy by CLSA; Long-term growth prospects
November 23rd, 2010 |
No Comments
CLSA confident in long term growth prospects of Ezra’s (5DN.SG) subsea acquisition. Upgrades earnings marginally in view of larger PSV fleet, but leaves subsea forecasts unchanged until more details released January.
Keeps at Buy with $2.35 target, offering 35% upside. Says, while only eight of ten assets held by EMAS-AMC are enabling assets (construction/installation/pipelay), “EMAS-AMC has sufficient scale (by assets) to be a credible alternative for customers seeking diversified service providers.”
House analysis suggests downside risk of 10% to current Ezra FY10 EBIT estimates (which based on very preliminary management guidance), up to minus 25% for FY12-FY13, depending on execution, size of contract wins.
But says downside risk minimised, estimates will not have to be revised down if EMAS-AMC able to speed up integration process, execute efficiently (achieve higher margins) or secure larger-than-expected number of contracts. Shares off 3.5% at $1.68.
{jcomments on}
Sponsor-backed REITs well placed for growth: CLSA
November 22nd, 2010 |
No Comments
Acquisitions may continue to drive growth of Singapore REITs but increasing competition for assets from private equity funds suggests REITs backed by sponsors will be better positioned for inorganic expansion than independent property trusts, says CLSA.
Expects REITs to continue pursuing acquisitions in near term given rising confidence in occupancies, rental outlook, low interest rates, stable asset yields, strong balance sheets; “we believe sponsor-linked REITs are in a more favorable position to embark on inorganic growth through acquisitions compared to non-sponsored REITs, which will be exposed to the competitive acquisition landscape as more foreign private equity funds participate.”
Says current valuations of Singapore REITs not demanding with prices trading at 0.9x P/B, 6.8% FY11 DPU yield. Favorites include CapitaMall Trust (C38U.SG), Frasers Centrepoint (J69U.SG), Ascott Residence (A68U.SG), Ascendas REIT (A17U.SG), Mapletree Logistics (M44U.SG), Suntec REIT (T82U.SG).
{jcomments on}
Singapore banks sailing into doldrums: CLSA
November 18th, 2010 |
No Comments
CLSA downgrades OCBC (O39.SG) to Underperform vs Outperform, keeps $9.25 target; says OCBC produced best quality result in 3Q, “but its share price has more than compensated with material outperformance.”
The research house is maintaining Underweight on Singapore banks which “sailing into the doldrums”.
CLSA says UOB (U11.SG), rated Buy with $22 target, is top pick. Adds, three banks’ 3Q10 results better than expected due to strong trading, investment income, “but this driver is not sustainable into the medium term,” underlying trends of ongoing NIM compression, rising costs, normalising credit charges all point to stalling earnings growth in 2011.
“We do not anticipate the Singapore banks offering solid growth in pre-provision earnings until interest rates — and thus NIMs — normalise some time in 2012-2013,” fundamental difference between Singapore banks, those elsewhere in Asean, India.
Keeps least favoured DBS (D05.SG) at Underperform with $12.90 target. OCBC +0.2% at $9.90, UOB +1.0% at $18.48, DBS flat at $13.92.
{jcomments on}
Tat Hong cut to Underperform vs Outperform by CLSA
November 16th, 2010 |
No Comments
CLSA downgrades Tat Hong (T03.SG) to Underperform vs Outperform on limited upside to $1.06 target, few catalysts near term, according to Dow Jones.
CLSA says crane company’s outlook stable but unexciting; “the project pipeline is healthy but with timelines outside Tat Hong’s control, and with cost issues affecting the Chinese business, we reserve our enthusiasm.”
ComfortDelgro +2.1%; Taxi outlook bright: UBS
November 15th, 2010 |
No Comments
ComfortDelGro (C52.SG) +2.1% at $1.49 in above-average volume after record 3Q results.
CLSA notes 3Q marks first time CD crosses $60 million quarterly net profit mark, underscoring benefits from increasing ridership at home, strong growth in Australia, which will receive further boost from Swan Taxis buy.
“Risks from rising fuel/electricity costs and forex translation losses appear to be priced into stock, which remains attractively valued at 13x forward P/E,” vs SMRT’s (S53.SG) 20x, says CLSA.
CLSA cuts SingTel to Underperform, ups target
November 12th, 2010 |
No Comments
CLSA downgrades SingTel (Z74.SG) to Underperform from Outperform, citing lack of catalyts. Notes earnings from associates weaker in September quarter due to stronger SGD vs INR, IDR, PHP.
Adds results for Singapore operations tad lower than expected due to higher content, subscriber acquisition costs. Still, lifts target price to $3.34 from $3.17 after rolling over discounted cashflow valuation. Fiscal 2Q11 earnings down 6.7% on-year at $892.2 million.
Shares off 0.3% at $3.30.
{jcomments on}
Venture restarted at Buy by CLSA, $11.30 target
November 8th, 2010 |
No Comments
CLSA restarts Venture Corp. (V03.SG) at Buy with $11.30 target, based on five-year average P/E of 14x, says Dow Jones.
CLSA says contract electronics manufacturer’s focus on wider-margin businesses, such as product planning and design, differentiates it from peers; “this and its diverse portfolio of more than 5,000 products have shielded it from commoditisation and average selling price declines and allowed it to sustain an average decade-long” operating margin premium of 3.7 percentage points over rivals.
Research house notes Venture’s strategy has always been to deepen engagement with existing customers by increasing number of products, processes it undertakes. Tips company as potential takeover target for Asian electronic manufacturing services companies like Hon Hai Precision (2317.TW). Shares off 0.5% at $9.34.
{jcomments on}
CLSA stays happy SembMarine holder, cautious buyer
November 8th, 2010 |
No Comments
CLSA cuts SembCorp Marine (S51.SG) to Outperform vs Buy to reflect recent 20% rally; raises target to $5.25 vs $5.01, says Dow Jones.
CLSA says, possibility stock could trade well above fundamental value given strong momentum: “We remain happy holders but cautious buyers”.
Adds, “with further contracts likely before the year’s out, and a further S$2 billion-S$3 billion likely in 2011, not forgetting a potential $7 billion Petrobras order, the stock has ample share price catalysts.”
Says, 3Q indicates positive earnings growth in 2010; 18.1% 9M10 operating margin well above 14.2% forecast; adjusts margin forecasts for rest of year, 2011, 2012, resulting in earnings increasing by 12%-20%.
Continues to prefer SMM to Keppel Corp (BN4.SG) "for exposure to O&M space for its pure-play status." SembMarine shares +3.4% at $4.90.
{jcomments on}