HSBC upgrades Olam International (O32.SG) to Overweight from Neutral, and keeps its target at $3.63. The house says Olam’s acquisition of Britannia Food Ingredients and its logistics business for around US$50 million ($63.9 million) will enhance Olam’s presence in the entire cocoa supply chain by including processed cocoa products.
Posts Tagged ‘overweight’
HSBC starts Sabana at Overweight, $1.12 target
January 21st, 2011 |
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HSBC starts Sabana Shari’ah Compliant REIT (M1GU.SG) at Overweight with a $1.12 target price; house likes Singapore’s first Shari’ah compliant REIT for its steady income profile and current pricing: “While we project flattish DPU over the next three years (distribution yield: 8.2%), we note that Sabana is trading at a 10% discount to our diluted FY11 NAV of $1.11 and at a 12% discount to our DDM valuation of $1.14, suggesting valuations are attractive.”
HSBC starts Ascendas REIT at Overweight
January 20th, 2011 |
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HSBC starts Ascendas REIT (A17U.SG) at Overweight, with a $2.36 price target. The house says A-REIT is the “leader of the industrial pack.” It adds, A-REIT has a stable income profile from diversified exposure across industrial property types, tenants and lease tenures.
Morgan Stanley starts Amtek Engineering at overweight
January 11th, 2011 |
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Morgan Stanley initiates Amtek Engineering (M1P.SG) at Overweight with a $1.46 target; it says since delisting in 2007, Amtek has repositioned itself under new management as a specialist in the manufacture of complex metal precision components, broadening its product line-up, clientele and end-market applications.
Credit Suisse rates Asia container shipping sector Overweight; Likes NOL
January 4th, 2011 |
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Credit Suisse keeps the Asia container shipping sector at Overweight, noting China outbound freight rate and utilisation on major trades rebounded last week after weeks of decline, with cargo volumes starting to recover ahead of the Lunar New Year holiday.
The house also notes leading indicators such as the US ISM and China PMI new export orders for December continued to expand on-month and it views as suggesting decent Asian exports in the next few months, while the latest US and European consumer sentiment and retail data also point toward an improving demand outlook.
CapitaMall started at Overweight by HSBC, target $2.22
December 10th, 2010 |
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HSBC initiates CapitaMall Trust (C38U.SG) at Overweight with $2.22 target price; says the REIT’s stable income profile ensures steady payouts while its asset enhancement initiatives will result in continued rental uplift.
Says the “recent correction (is) an opportunity to go long on Singapore’s oldest REIT.”
OCBC upgrades S-REIT sector to overweight
December 10th, 2010 |
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OCBC upgrades the S-REIT sector to Overweight from Neutral; says going into 2011, “the persistently low interest rate environment is expected to stimulate the property market and continue to drive prices higher.”
Coupled with hot capital inflows pouring into Asia, says it’s likely that spot rental rates and asset prices will continue to be inflated. “At the same time, many REIT managers are capitalizing on the recovery cycle for further asset enhancement initiatives and acquisitions.”
SIA kept at Overweight by HSBC; Sector top pick
December 7th, 2010 |
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HSBC says Singapore Airlines (C6L.SG) one of top picks among Asian conglomerates, transport stocks, as remains “positive on passenger driven airlines, hotels and conglomerates leveraged to Asian consumption.”
OCBC overweight O&G service sector; Tips Keppel, SembMarine
December 2nd, 2010 |
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OCBC expects oil & gas companies with expertise in deepwater production to fare better vs those limited to shallow waters in 2011.
“The demand for premium deeper water jack-ups has returned, and Keppel Corp. (BN4.SG) and SembCorp Marine (S51.SG) are likely to see more of such high-spec orders.”
Golden Agri, Indofood started at Overweight at HSBC
November 22nd, 2010 |
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HSBC starts Golden Agri-Resources (E5H.SG) at Overweight, sets target at $0.90, starts Indofood Agri Resources (5JS.SG) at Overweight with $3.38 target, Wilmar International (F34.SG) at Neutral with $7.01 target.
HSBC says structural, regulatory drivers mean house estimates 2011 demand growth for crude palm oil will be at decade high, with bottlenecks in expanding acreage, unfavourable weather pressuring supply ahead.
CIMB upgrades STI to Overweight; 3,560 target
November 16th, 2010 |
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CIMB upgrades Singapore market to Overweight from Neutral as says it has lagged regional markets; says on P/E basis, regional Asean markets mostly trading below mean 12-month forward P/Es, “implying that while conditions for a liquidity bubble are building, markets are not yet on a boil.”
Though STI has underperformed for bulk of 2010, index started to show signs of life in September/October prior to Fed’s QE2, “that bout of performance gave way to a sell-on-news correction last week, after QE2 became formal. With the STI still underperforming year to date, we see this period of weakness as an opportunity to turn positive yet again.”
Raises end-CY11 STI target to 3,560 from 3,416, based on 1.9x CY11 P/BV (slightly above mean), 14.4x CY12 P/E (below mean); “such valuations are conservative. The Fed is creating bubbles and bubbles are painful when they burst, but valuations suggest that it is too early to be wary.”
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CIMB overweight on financials but short on OCBC, SGX
November 16th, 2010 |
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CIMB rates Singapore financial stocks at Overweight; says OCBC (O39.SG) booked best-quality 3Q earnings, showing all-round strength, DBS (D05.SG), UOB (U11.SG) beat expectations but results trading-inspired. SGX (S68.SG) in line, considering slow volumes at quarter-start, according to Dow Jones.
“Margin pressure remained a dominant, negative theme for the banks. Although the rates of contraction slowed on quarter, the trend may not reverse anytime soon,” says CIMB whose top pick is DBS top pick; top shorts are OCBC and SGX.
Ascendas India Trust rated ‘overweight’ by JP Morgan
October 26th, 2010 |
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JP Morgan Research in an Oct 22 research report says: “AIT reported 2QFY11 distribution per unit (DPU) of $0.017 per unit, +2% q-o-q. 1H10 dividend of $0.034 implies an annualized yield of 6.5%.
HSBC starts Noble at Overweight; $2.58 target
October 12th, 2010 |
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HSBC starts Noble Group (N21.SG) at Overweight with $2.58 target for over 30% potential return; says firm “a global leader in industrial and agri commodity trading…is increasing asset intensity upstream and midstream to capture a wider margin profile and build supply security.”
OCBC started at Overweight by Morgan Stanley with $10.48 target
October 4th, 2010 |
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Morgan Stanley starts OCBC (O39.SG) at Overweight with $10.48 target price, says Dow Jones.
Morgan Stanley says bank not being given credit for its solid performance through last year’s global financial crisis. Notes OCBC has lowest non-performing loan ratio among Singapore banks, aided by prudent management over last 7 years.
Overseas Union Enterprise rated ‘overweight’ by Morgan Stanley
September 16th, 2010 |
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Morgan Stanley Research in a Sep 14 research report says: “We launch coverage on property developer OUE with a price target of $3.34. We think OUE offers compelling value at the current price, trading at a 26% discount to our RNAV estimate.
Overseas Union Enterprise started at Overweight by Morgan Stanley
September 14th, 2010 |
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Morgan Stanley starts Overseas Union Enterprise (LJ3.SG) at Overweight with $3.34 target price, according to Dow Jones.
Morgan Stanley notes about half of property group’s gross asset value derived from Singapore office sector, which house views favourably. Says management actively extracting value by undertaking asset enhancement initiatives for existing properties, while at same time acquiring assets to expand portfolio.
“OUE’s current asset portfolio of around $5 billion offers various opportunities for enhancement and redevelopment, which, if exercised, could unlock value and further expand the company’s asset and earnings base.”
Says large $5 billion balance sheet, relatively low gearing of 39% puts OUE in good position to take on more acquisitions. Shares +1.0% at $2.96 early.
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BreadTalk started at Overweight by JPMorgan with $0.70 target
September 14th, 2010 |
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JPMorgan starts BreadTalk Group (5DA.SG) at Overweight with $0.70 target price, based on 15x FY11 P/E, according to Dow Jones.
JPMorgan says company has transformed from bakery chain into regional food & beverage player with strong presence in Singapore, China.
Research house notes, company more than doubled number of bakeries, restaurants, food courts over FY05-FY09, delivering revenue and net profit CAGR of 27%, 81% respectively over that period.
Adds wide range of F&B offerings positions it to take advantage of higher disposable income of China’s urban households, rising trend of dining out among mass affluent consumers: “We see strong potential in BreadTalk’s restaurant business, which generates the highest operating margin and average revenue per outlet among its three segments.”
Shares +5.4% at $0.585.
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Olam started at Overweight by HSBC; $3.41 target
September 7th, 2010 |
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HSBC starts Olam (O32.SG) at Overweight with $3.41 target price, according to Dow Jones.
HSBC says commodities trader broadening participation across value chain by adding hard assets, capabilities that offer strategic value to existing businesses: “This should enable Olam to capture wider margins while reducing its dependence on volumes to support earnings.”
China Minzhong Food Corp rated ‘overweight’ by JP Morgan
August 26th, 2010 |
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JP Morgan Research in an Aug 25 research report says: “Excluding fair value losses of Rmb15 million, core net profit of Rmb383 million (+37% y-o-y) was 13%/5% ahead of JPM/consensus estimates. Gross profit margin remained steady at 40.4%.