Singapore Stock Picks 2H2018
CIMB Analysts Alpha Picks
Singapore Small Cap Stock Picks
CHINA SUNSINE CHEM HLDGS LTD.
SGX:CH8
MM2 ASIA LTD.
SGX:1B0
RIVERSTONE HOLDINGS LIMITED
SGX:AP4
SUNNINGDALE TECH LTD
SGX:BHQ
YONGNAM HOLDINGS LIMITED
SGX:AXB
Stock Strategy Singapore - Analysts’ Alpha Picks For 2H18 (Small Cap)
- Small-cap new Alpha picks are Riverstone (capacity expansion) and Sunningdale Tech (de-rated significantly post 1Q18 results).
- Other small-cap Alpha picks are: China Sunsine Chemical, mm2 Asia, Yongnam.
CIMB Analysts’ Alpha Picks for 2H18 (Small Cap)
China Sunsine Chemicals (Rating: ADD, Target Price : S$1.87)
- We reaffirm our Add call with Target Price of S$1.87, pegged to 9.8x CY19F EPS. Sunsine delivered record earnings and topped our forecasts for the past two quarters amid consolidation in the domestic supply of rubber accelerators in its favour.
- Our channel checks revealed domestic prices of rubber accelerators have risen sharply (c.5% m-o-m) in May, while aniline (bulk of its raw material) costs stayed flat.
- If the momentum continues, we expect Sunsine to deliver strong earnings for the rest of FY18F and could sound another positive earnings alert for its 2Q18. Key catalysts could come from stronger-than-expected earnings.
- CHINA SUNSINE CHEM HLDGS LTD. (SGX:CH8) China Sunsine (SGX:CH8) Share Price China Sunsine (SGX:CH8) Target Price China Sunsine (SGX:CH8) Analyst Reports China Sunsine (SGX:CH8) Corporate Actions China Sunsine (SGX:CH8) Announcements China Sunsine (SGX:CH8) Latest News China Sunsine (SGX:CH8) Blog Articles
mm2 Asia (Rating: ADD, Target Price : S$0.74)
- We like mm2 as a proxy for growing media and entertainment business in Asia, given its extensive presence across the entire value chain, which include cinema assets, events production (UnUsUal) and post-production businesses. It also recently announced a film partnership with Korea’s CJ E&M.
- Key potential near-term catalyst is the possible spin-off of its Vivid-three subsidiary, which could set it off on a stronger earnings trajectory.
- At current valuation of c.14x CY19F P/E, we think mm2’s growth prospects and potential synergies may have been overlooked.
- MM2 ASIA LTD. (SGX:1B0) MM2 (SGX:1B0) Share Price MM2 (SGX:1B0) Target Price MM2 (SGX:1B0) Analyst Reports MM2 (SGX:1B0) Corporate Actions MM2 (SGX:1B0) Announcements MM2 (SGX:1B0) Latest News MM2 (SGX:1B0) Blog Articles
Riverstone Holdings (Rating: ADD, Target Price : S$1.28)
- Our Target Price is pegged to 16.7x CY19F P/E. We expect Riverstone’s production capacity to rise by another 1.4bn gloves or c.18% of its existing annual capacity of 7.6bn gloves by 3Q18F.
- We expect it to maintain c.90% overall utilisation level despite new production lines, backed by strong demand for its gloves amid the shift away from PVC towards nitrile gloves and new customer acquisitions in China and Vietnam.
- Currently trading at c.27% discount to its peer average of 18x. A stronger US$ could well benefit Riverstone and it was able to pass on higher raw material costs in 1Q18. We expect some recovery in its gross margin in FY18F.
- RIVERSTONE HOLDINGS LIMITED (SGX:AP4) Riverstone Holdings (SGX:AP4) Share Price Riverstone Holdings (SGX:AP4) Target Price Riverstone Holdings (SGX:AP4) Analyst Reports Riverstone Holdings (SGX:AP4) Corporate Actions Riverstone Holdings (SGX:AP4) Announcements Riverstone Holdings (SGX:AP4) Latest News Riverstone Holdings (SGX:AP4) Blog Articles
Sunningdale Tech (Rating: ADD, Target Price : S$2.50)
- Valuation has de-rated to 0.62x CY18F P/BV after its disappointing 1Q18 results.
- We believe the 1Q18 earnings disappointment is priced in given that the long-term average P/BV is 0.55x.
- Potential catalysts include a better q-o-q performance as new projects in the consumer/IT segment ramp up production.
- SUNNINGDALE TECH LTD (SGX:BHQ) Sunningdale Tech (SGX:BHQ) Share Price Sunningdale Tech (SGX:BHQ) Target Price Sunningdale Tech (SGX:BHQ) Analyst Reports Sunningdale Tech (SGX:BHQ) Corporate Actions Sunningdale Tech (SGX:BHQ) Announcements Sunningdale Tech (SGX:BHQ) Latest News Sunningdale Tech (SGX:BHQ) Blog Articles
Yongnam Holdings (Rating: ADD, Target Price : S$0.56)
- We reaffirm our ADD call with Target Price of S$0.56, based on 0.8x CY19F P/BV. Its JV with Leighton has just won a major North-South Corridor project worth S$553.8m.
- This would significantly boost its order book from S$142m to S$308m, above its 3-year average (c.S$290m), based on its 30% stake in the JV. We expect significant revenue contribution to start in 1Q19F.
- Also actively pursuing the Melbourne Metro project and other civil engineering and strut orders for infrastructure projects in Singapore, Australia, Hong Kong and the Middle East. Key potential catalysts include further contract wins.
- YONGNAM HOLDINGS LIMITED (SGX:AXB) Yongnam (SGX:AXB) Share Price Yongnam (SGX:AXB) Target Price Yongnam (SGX:AXB) Analyst Reports Yongnam (SGX:AXB) Corporate Actions Yongnam (SGX:AXB) Announcements Yongnam (SGX:AXB) Latest News Yongnam (SGX:AXB) Blog Articles
LIM Siew Khee
CGS-CIMB
|
Singapore Research Team
CGS-CIMB
|
https://research.itradecimb.com/
2018-05-24
SGX Stock
Analyst Report
1.870
Same
1.870
0.740
Same
0.740
1.280
Same
1.280
2.500
Same
2.500
0.560
Same
0.560
