Nam Lee Pressed Metal Industries - Attractive yield with downside capped by cash hoard

Recommendation: Buy (Maintained), Last Close Price: $0.365 Target Price: $0.51 (previously $0.56), Analyst: Richard Leow

• 9M18 revenue and PATMI met 69% and 73% respectively, of our full year estimate

• Maintain Buy; new target price of $0.51 (previously $0.56) due to trade war concerns and slower recovery in construction sector

Raffles Medical Group Ltd -Expenses coping well to softer conditions

Recommendation: Accumulate (Maintained), Last Close Price: $1.11 Target Price: $1.32, Analyst: Phillip Research Team

• 2Q18 PATMI was within expectations, but revenue trending below our estimates

• Cost is coping well with the softer revenue growth as margins expanded

• Clinic revenues rising but offset by softer hospital revenues

• Maintain ACCUMULATE with unchanged TP of S$1.32. Our earnings forecast is unchanged.

Oversea-Chinese Banking Corp Ltd - NIM expansion yet to be unleashed

Recommendation: Buy (Upgraded), Last Done price: S$11.58 Target Price: S$14.90, Analyst: Tin Min Ying

• 2Q18 PATMI exceeded our expectations by 4.6%.

• Loans grew 10% YoY, mainly driven to housing loans recovered to 8% YoY.

• NIM’s increase by only 2bps YoY to 1.67%. The higher NIM in Singapore and Malaysia was offset by lower NIM in Indonesia and Hong Kong.

• Allowances dropped 88% YoY. The worst is over for the O&G and shipping sectors.

• Our rating has been upgraded to BUY with an unchanged target price of S$14.90.

Asian Pay Television Trust - Dividends to be cut and subscribers declined

Recommendation: Reduce (Downgraded), Last Done price: S$0.405 Target Price: S$0.350, Analyst: Paul Chew

• 1Q18 revenue and EBITDA was weaker than expected due to a 2.5% point hit on forex.

• All our worst fears snowballed into dividends being cut for FY19e, capex guidance raised until FY20 and cable pay-TV subscribers fell materially.

• We have downgraded our rating to REDUCE and cut our target price to S$0.35 (previously S$0.52). Our dividend per unit for FY19e slashed to S$0.035 (previously S$0.065)

Source: Phillip Capital Research - 8 Aug 2018