Frencken Group (FRKN SP)
1Q18: Results In Line, Broad-based Improvements Ahead
Frencken’s 1Q18 results are in line. Despite the absence of revenue from a sold subsidiary, higher sales from Mechatronics offset reduced sales from IMS to deliver overall growth of 3.2% yoy. Stripping out 1Q17’s one-off disposal gain, attributable net profit grew 10.8% yoy. As Frencken executes its strategies amid a positive macro background, we expect broad-based improvements in 2Q18. Maintain BUY with an unchanged PE-based target price of S$0.79, implying 46.3% upside.
Genting Singapore: EBITDA up 27% YoY!
Weaker tropical oils a drag on 1Q18 earnings
■ Wilmar’s 1Q18 results below expectation due to lower tropical oils earnings.
■ Core net profit fell 37% yoy due to weaker performances from key divisions.
■ Tropical oils and sugar posted poorer earnings due to weaker refining margins.
■ The group said the plan to list its China operations is on track for 2H19.
■ We retain our Add call due to its attractive valuations and plan to list its China assets
Health Management International
In the pink of health SINGAPORE | HEALTHCARE | 3Q18 RESULTS
9M18 Revenue/Core PATMI met 73%/76% of our full year estimations
Remains a medical tourism hotspot; 9M18 Foreign patient load +15% YoY
Improving operating efficiencies, with higher Day Surgery cases and benefitting from its cost-saving initiatives; FY18e EBITDA margin could +2pps YoY to c.25%
Maintain BUY with unchanged DCF-derived TP of S$0.83
A good start Thesis: Riding on labour market recovery.
We maintain our BUY recommendation for HRnetGroup as a beneficiary of the economic and labour market improvement. The counter is currently trading at 16.5x/15.8x FY18F/19F PE. Excluding cash estimated on its balance sheet, PE (ex-cash) would be even lower at c.10.6x/10.1x our earnings estimates. The institution of the group’s co-ownership model with its IPO has seen over 400 of its employees becoming shareholders. In our view, this aids in increasing motivation and bodes well for the group.
Hongkong Land (HKL SP)
Central office vacancy fell below 1% on continued favorable rental reversion
Office reversionary growth in Singapore to turn positive later this year
Recent share buyback signals strong embedded value
Maintain BUY with US$8.53
Check out our compilation of Target Prices