DBS Equity Research: Wired Daily 25 Feb 2016

kiasutrader

Publish date: Thu, 25 Feb 2016, 01:30 PM

Super Group - Negatives priced in; upgrade to BUY, TP raised to S$0.91

4Q15 earnings for Super Group above expectations, led by higher margins and better than expected Branded Consumer sales. A final DPS of 1.2 Scts was declared. We upgrade Super Group to BUY, TP raised to S$0.91, after the stock corrected by c. 13% since our last note. We now find there is value in the stock after 4Q15 turned in a better than expected earnings performance. SUPER now trades below - 1SD of its historical mean and we believe negatives have been priced in. Furthermore, the better than expected 4Q15 results show signs of earnings improvement which, if sustained, will drive the share price going forward. Besides, there could be more upside if earnings outperform our below consensus estimates.

Far East Hospitality Trust's 4Q15 DPU of 1.17 Scts (-9% yo-y) in line with expectations, negatively impacted by weak corporate demand and increase in hotel supply. Maintain HOLD, TP S$0.63. At current level, FEHT offers a prospective

6.8% yield.

4Q15 EBITDA for Asian Pay Television Trust was 5% below our estimates, due to higher-than-expected operating costs. Forex changes and higher staff costs were the key factors. Management has cut FY16F distributions guidance by 15-20% to 6.5-7 Scts versus 8.25 Scts in FY15. Maintain HOLD with lower TP of $0.62 (Prev S$0.77).

Nam Cheongreported a 4Q15 net loss of RM21.5m, compared to a net profit of RM41.1m a year ago. Revenue fell 54% to RM241. For the full year, net profit fell 91% to RM28.5m while revenue halved to RM950m. No final dividend was declared compared to S$0.015 a share a year ago.

City Developmentsreported a net profit of S$410m for 4Q15, up 6.6% y-o-y. Revenue was up one per cent to S$855m. The higher profit was driven by the monetisation of the group's prime office assets 7 & 9 Tampines Grande, Manulife Centre and Central Mall (Office Tower). For the full year, net profit was up 0.5% to S$773m while revenue fell 12.2% to S$3.3 bn.

Yongnam Holdings has been awarded four contracts worth a total of S$69.8m for projects in Singapore and the Middle East. The projects include two structural steelwork subcontracts for Jewel Changi Airport and the Robinson Tower Development in Singapore, and two supply and fabrication projects for power plants in Qatar and Egypt.

PACC Offshore Services Holdings (POSH) has secured longterm charters for five vessels to the Middle East with a combined contract value of approximately US$85m. The first contract is to supply four new utility vessels to the specific requirements of a Saudi Arabian national oil and gas major, primarily to support its offshore maintenance work in the Persian Gulf. The second contract won is for one of the Group's Anchor Handling, Towing and Supply (AHTS) vessels for a Qatari client in the Middle East.

Singapore registered 4Q GDP of 6.8% expansion q-o-q, bringing the full-year growth to 2%. The Ministry of Trade and Industry (MTI), meanwhile, maintained this year's GDP growth outlook at 1-3%. Over the last two years, GDP posted negative q-o-q growth only in 2Q15. Hence, the case for a technical recession (consecutive 2 quarters of negative growth) remains low in our view, notwithstanding the weak trade activities. We also believe that the case for a change in the policy stance in the upcoming MAS currency policy meeting in April remains low.

Source: DBS

Far East HTrust (Q5T)Asian Pay Tv Tr (S7OU)Nam Cheong (N4E)CityDev (C09)Yongnam (AXB)

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