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Banyan Tree Holdings Limited

Plagued by one-offs



 Revenue and PATMI below our expectations due to under-forecasted one-offs and continued weakness in Thailand. Excluding other income, PATMI would have risen c.50%.

 One-offs from reduced stake in BTAC and disposal of Seychelles portfolio to continue into the rest of FY2019.

 Effective cost measures across the board, with total costs and expenses declining -23%.

 Forward bookings edged back up after a decline in 1Q19, up 11% YoY for 2Q19 (+6% YoY for Thailand market and +26% YoY for Non-Thailand markets).

 Hotel investments segment still suffering from Thailand underperformance, stemming from the inventory shortage from ongoing renovations at flagship resort Banyan Tree Phuket.

 Long-term growth catalysts remain intact. Focus would be the continued build-up in feebased income and property sales. 53 hotels under the Banyan Tree umbrella of brands are slated to open from 2019 to 2022.

 Maintain ACCUMULATE with unchanged target price of S$0.76.


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ISDN Holdings Ltd

Be part of the automation revolution


■ ISDN is a motion control specialist with more than 30 years of industry experience.

■ Strong prospects for its core motion control business, its hydropower plants coming on stream and investment by Novo Tellus could catalyse its stock.

■ We initiate coverage on ISDN with an Add rating and TP of S$0.32.


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Frasers Centrepoint Trust (FCT SP)

Beneficiary Of Northern Gateway, Adding Depth To Suburban Retail; Upgrade To BUY


Causeway Point, FCT’s largest retail mall, will benefit from the development of Northern Gateway and Woodlands Regional Centre. More office buildings will sprout up around Causeway Point, bringing a larger office crowd to the suburban mall during weekdays. The acquisition of a 33.3% stake in Waterway Point and 18.8% stake in PREAF adds depth to FCT’s specialisation in suburban retail malls. We expect the two assets to account for 29% of NPI in FY20. Upgrade to BUY. Target price: S$2.71.


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Japan Foods (JFOOD SP)

Slow Earnings Growth, Keep NEUTRAL


 Keep NEUTRAL, with a lower SGD0.40 TP from SGD0.45, 9% downside with 4.3% FY20F (Mar) yield as we lower FY20F-21F earnings by 25-30%. While there exists pressure from moderating consumer discretionary spending, contributions from new Konjiki Hototogisu stores and Japan Foods’ growing regional presence should help it deliver 4% profit growth in FY20 vs 42% profit decline in FY19. A net cash position, strong FCF generation and +4% yield should provide support to its share price.


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LionelLim8.16Check out our compilation of Target Prices