Cityneon Holdings (CITN SP)
1Q18: Results In Line With Expectations; Seasonally Weak First Quarter
Cityneon’s 1Q18 results were in line with expectations. Net profit rose 80.4% yoy to S$4.0m, driven by higher sales from the intellectual property rights segment and an uptick in gross margins from a positive sales mix. The group guides for 9-10 completed sets by end-18 and the orderbook for 2019 should likely be filled soon, given the strong indication of interest from different partners in different cities. Maintain BUY and PE-based target price of S$1.55.
First Resources Ltd
1Q earnings impacted by lower CPO prices and inventory build-up
■ FR’s 1Q18 core net profit is broadly in line with our expectations but below consensus forecasts.
■ 1Q18 earnings impacted by lower ASPs for palm products and inventory build-up.
■ CPO sales volume impacted by net inventory build-up of 37,000 tonnes in 1Q18.
■ We project stronger earnings in subsequent quarters on the back of higher output, better ASPs for palm products and improved downstream margins.
■ Maintain Add with an unchanged target price of S$2.03 (15x CY19F P/E).
Singapore O&G Ltd.
O&G still on and going strong
SINGAPORE | HEALTHCARE | 1Q18 RESULTS
1Q18 Revenue/PATMI met 25.3%/28.5% of our full year estimations
Number of deliveries increased despite industry decline; Cancer-related segment continues to ramp up
HIFU, new technology in Singapore to bring in new revenue avenue
Maintained ACCUMULATE and TP of S$0.42
Health Management Int’l (HMI SP)
Expanding into Ambulatory Care Centre
Long-term potential to compensate start-up losses
HMI has committed SGD40m to acquire a 62.5% stake in StarMed @ Farrer Square, a new ambulatory care centre in Singapore. HMI could tap into the positive trend of more day procedures being done outside of hospitals and expand its presence in the ASEAN region. We expect startup losses of SGD1-2m for the first two years of operations, but this deal should be positive over the long term. Accordingly, we trimmed our FY19-20E EPS by 4-7% but maintain our DCF-based TP of SGD0.80 (WACC 7.4%, LTG 2.0%) as we expect earnings contribution in FY21E onwards to compensate for the start-up losses with upside potential on good startup.
BUY; TP S$ 0.29 based on 1.4x FY18 book value. Ezion’s sell-off since resumption of trading is unwarranted. We hold on to our view that Ezion is poised to re-rate from its current low valuation (which reflects insolvency), catalysed by: i) successful refinancing exercise which provides a 6-year runway; ii) improving utilisation and day rates driving an earnings recovery; iii) Temasek-linked Pavilion Capital as strategic investor boosts confidence; and iv) potential strategic partners to brighten growth prospects.
Jumbo Group (JUMBO SP) : HOLD
Incurring higher costs in expansion phase
• 2Q18 slightly below on higher staff costs
• Interim DPS of 0.5 Scts declared
• Trimmed FY18-19F earnings by 6% each
• Maintain HOLD and TP of S$0.58 based on 23x blended FY18F/19F earnings
Check out our compilation of Target Prices