Towards Financial Freedom
DBS Equity Research: Wired Daily 29 Apr 2016
OCBC - 1Q16 results in line
UOB - Still cautious; maintain HOLD and TP of S$18.80
OCBC's 1Q16 earnings, released this morning, were largely inline at 23% of our FY16F forecasts. Net interest margin (NIM) was 1bbps higher q-o-q, 13bps higher y-o-y but loans contracted 1% both q-o-q/y-o-y. No dividends were declared during the quarter. Non-interest income was lower due to lower contribution from insurance, wealth management and investment banking income. Expenses were lower q-o-q but higher y-o-y. Cost-to-income ratio stood at 44.8%. Provisions were higher both q-o-q and y-oy. More updates to follow.
UOB's 1Q16 earnings in line; but dragged by slower noninterest income traction; provisions and non-performing loans (NPLs) were stable. Exposure to commodities was largely unchanged at 7% to total loans. We maintain our cautious stance for the year. Maintain HOLD; S$18.80 TP.
4Q16/FY16 net profit for SMRT boosted by tax refund; otherwise core profits below expectations. Final DPS of 2.5 Scts was proposed. The drag came from its train operations being impacted by higher operating costs, the fare reduction and cannibalisation from opening of Downtown Line 2. Maintain HOLD, TP S$1.53 (Prev S$1.50).
Yangzijiang's 1Q16 core profit in line. Net profit of Rm448m (-37% y-o-y), attributable largely to the absence of income from forfeited deposits and share of losses for its shipping fleet. During the quarter, Yangzijiang saw termination of eight shipbuilding orders. It has also clinched one new order win that forms 26% of our order win assumption of US$2bn. More updates after briefing today.
1Q16 results for iFAST below expectations amidst negative market sentiment and business expansion plans 1Q16 net profit fell 58.4% y-o-y to S$1.25m, accounts for only 9% of our FY16 forecast. Revenue came in at $18.7m (-10.6% y-oy) and made up 20% of our earlier estimates for FY16. The increased investments and expenses in 1Q16 coincided with the adverse financial market conditions at the beginning of 2016 that significantly affected the Group's profit.
Mapletree Greater China Commercial Trust's 4Q16 DPU of 1.923 Scts in line with expectations. Strong rental reversions but weak tenant sales partially due to renovations at the cinema at Festival Walk. Gearing drops below 40% with NAV per unit rising to S$1.23. Maintain BUY, TP: S$1.15 (Prev S$1.11) as we roll forward our valuation base to FY17.
Cambridge Industrial Trust's 1Q16 DPU of 1.112 Scts dropped 9.7% due to capital distribution and fees in units paid a year ago. Asset recycling of older assets to deploy capital; Australia could be a new market. HOLD call maintained, TP reduced to S$0.56 (Prev S$0.61) as we reduced our DPU estimates to account for lower-than expected net property income (NPI) margins.
SIIC Environment reported a 30.9% growth in 1QFY16 net profit to Rmb89.5m, on the back of 50.5% growth in turnover to Rmb563m. Growth was attributable to a 135% jump in construction revenue and mid-teens growth in O&M revenue. Balance sheet remained strong with net debt-equity ratio of 42%. Maintain HOLD with TP of S$0.69.
King Wan Corporation has secured new mechanical and electrical (M&E) projects in Singapore during the period from December 2015 to March 2016, worth a total of S$29.5m. These projects are scheduled to be completed between 2016 to 2018. Order book stands at S$164.5m.
ACROMEC has won two contracts totalling S$5.4m, one from new customer in healthcare sector and the other from existing customer in research sector. The latest contract wins contribute to cumulative order book of approximately S$52m.
Source: DBS
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