THAI BEVERAGE PUBLIC CO LTD
SGX:Y92
SHENG SIONG GROUP LTD
SGX:OV8
MM2 ASIA LTD.
SGX:1B0
SILVERLAKE AXIS LTD
SGX:5CP
Consumer Discretionary Sector - CGS-CIMB’s Consumer Day Wrap-Up
- At our Consumer Day held on 11 Sep, we hosted 11 companies (7 we cover, 4 non-rated) within the consumer staples, e-commerce and media/tech space. The event was attended by 101 buy-side analysts and fund managers.
- Consumer staples names (Sheng Siong and Thai Beverage) received the most investor attention; e-commerce names also piqued investor interest.
- Within the media and tech stocks, we hosted mm2 Asia, Silverlake and Spackman.
- Overall, investors were positive on domestic supermarket plays and interested in learning about the key value propositions of the e-commerce companies.
Consumer staples: steady supermarket dynamics
- Sheng Siong Group (SGX:OV8) guided that FY18 will be a record year, with eight stores opening, and anticipates a healthy Singapore supermarket open tender pipeline over the next three years.
- Thai Beverage (SGX:Y92)’s focus is on rebranding and rejigging the procurement processes of SABECO whilst it waits for the consumption conundrum in Thailand to abate.
- Japfa (SGX:UD2) sees sustainable Vietnam swine prices post supply rundown during the last swine demand slowdown.
- Fraser & Neave FNN (SGX:F99) aims to increase its stake in Vinamilk given the latter’s robust growth prospects whilst preserving its existing beverage and dairy business.
~ SGinvestors.io ~ Where SG investors share
Embracing the rise of e-commerce in Asia Pacific
- Y Venture Group (SGX:1F1) reiterated its optimism that its upcoming AORA platform will allow it to ride the growing cross-border purchases segment in Asia for growth.
- Synagie (SGX:V2Y) expressed confidence of a turnaround in the near term as it continues to ramp up its e-commerce and Insurtech businesses.
- ShopBack shared interesting insights on growing digital ad spend by e-commerce merchants and other non-e-commerce brands in efforts to drive online consumer purchases and user re-engagement on mobile websites and apps, respectively.
Media – growing popularity of Asian movies
- mm2 Asia (SGX:1B0) attributes its recent share price weakness to possible uncertainty over China’s tax evasion crackdown on the country’s TV and movie industries, a longer turnaround in its cinema operations and focus shifting towards Vividthree’s potential listing. Investors view its current valuation (9x 12M forward P/E) as attractive given the group’s prospects but may prefer to await the emergence of stronger catalysts.
- A proxy for Korean entertainment, Spackman Entertainment (SGX:40E) returned to profitability and net cash position in FY17.
Maintain Overweight on consumer sector
- We stay sector Overweight.
- Catalysts are
- better-than-expected GDP growth rate in 2018F which could spur retail consumption and
- higher earnings growth momentum from consumer staple companies.
- Downside risks to our sector call are the vice-versa.
Sector top picks
- Our top picks for the consumer sector are Sheng Siong and Synagie.
- We like Sheng Siong’s stalwart supermarket business; its new store pipeline should help drive revenue growth in FY19F. Within the e-commerce space, we prefer Synagie as we believe its Insurtech business will catalyse near-term sales growth.
- Meanwhile, we are positive on Silverlake’s strong order book, which we believe will support 11-50% EPS growth in FY19-20F.
Key highlights from participating companies
- SHENG SIONG GROUP LTD (SGX:OV8) Sheng Siong (SGX:OV8) Share Price Sheng Siong (SGX:OV8) Target Price Sheng Siong (SGX:OV8) Analyst Reports Sheng Siong (SGX:OV8) Corporate Actions Sheng Siong (SGX:OV8) Announcements Sheng Siong (SGX:OV8) Latest News Sheng Siong (SGX:OV8) Blog Articles : Steady pipeline of opportunities. Rating: ADD; Target Price: S$1.26.
- THAI BEVERAGE PUBLIC CO LTD (SGX:Y92) Thai Beverage (SGX:Y92) Share Price Thai Beverage (SGX:Y92) Target Price Thai Beverage (SGX:Y92) Analyst Reports Thai Beverage (SGX:Y92) Corporate Actions Thai Beverage (SGX:Y92) Announcements Thai Beverage (SGX:Y92) Latest News Thai Beverage (SGX:Y92) Blog Articles : Domestic stays thirsty; SABECO transformation underway. Rating: ADD; Target Price: S$0.88.
- JAPFA LTD. (SGX:UD2) Japfa (SGX:UD2) Share Price Japfa (SGX:UD2) Target Price Japfa (SGX:UD2) Analyst Reports Japfa (SGX:UD2) Corporate Actions Japfa (SGX:UD2) Announcements Japfa (SGX:UD2) Latest News Japfa (SGX:UD2) Blog Articles : Vietnam woes abate. Rating: ADD; Target Price: S$0.80.
- Y VENTURES GROUP LTD. (SGX:1F1) Y Ventures (SGX:1F1) Share Price Y Ventures (SGX:1F1) Target Price Y Ventures (SGX:1F1) Analyst Reports Y Ventures (SGX:1F1) Corporate Actions Y Ventures (SGX:1F1) Announcements Y Ventures (SGX:1F1) Latest News Y Ventures (SGX:1F1) Blog Articles : AORA the next big thing? Rating: ADD; Target Price: S$0.56.
- SILVERLAKE AXIS LTD (SGX:5CP) Silverlake Axis (SGX:5CP) Share Price Silverlake Axis (SGX:5CP) Target Price Silverlake Axis (SGX:5CP) Analyst Reports Silverlake Axis (SGX:5CP) Corporate Actions Silverlake Axis (SGX:5CP) Announcements Silverlake Axis (SGX:5CP) Latest News Silverlake Axis (SGX:5CP) Blog Articles : Gunning for more orders. Rating: ADD; Target Price: S$0.56.
- SYNAGIE CORPORATION LTD. (SGX:V2Y) Synagie (SGX:V2Y) Share Price Synagie (SGX:V2Y) Target Price Synagie (SGX:V2Y) Analyst Reports Synagie (SGX:V2Y) Corporate Actions Synagie (SGX:V2Y) Announcements Synagie (SGX:V2Y) Latest News Synagie (SGX:V2Y) Blog Articles : Optimistic about Insurtech growth and regional e-commerce expansion. Rating: ADD; Target Price: S$0.34.
- 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 : Committed to Asian movies. Rating: ADD; Target Price: S$0.72.
- FRASER AND NEAVE, LIMITED (SGX:F99) F&N (SGX:F99) Share Price F&N (SGX:F99) Target Price F&N (SGX:F99) Analyst Reports F&N (SGX:F99) Corporate Actions F&N (SGX:F99) Announcements F&N (SGX:F99) Latest News F&N (SGX:F99) Blog Articles (Not Rated): Staying its course.
- SPACKMAN ENTERTAINMENT GRP LTD (SGX:40E) Spackman Entertainment (SGX:40E) Share Price Spackman Entertainment (SGX:40E) Target Price Spackman Entertainment (SGX:40E) Analyst Reports Spackman Entertainment (SGX:40E) Corporate Actions Spackman Entertainment (SGX:40E) Announcements Spackman Entertainment (SGX:40E) Latest News Spackman Entertainment (SGX:40E) Blog Articles (Not Rated): Riding the Korean fever.
- ASIAN PAY TELEVISION TRUST (SGX:S7OU) Asian Pay TV Trust (SGX:S7OU) Share Price Asian Pay TV Trust (SGX:S7OU) Target Price Asian Pay TV Trust (SGX:S7OU) Analyst Reports Asian Pay TV Trust (SGX:S7OU) Corporate Actions Asian Pay TV Trust (SGX:S7OU) Announcements Asian Pay TV Trust (SGX:S7OU) Latest News Asian Pay TV Trust (SGX:S7OU) Blog Articles (Not Rated): Looking for better reception.
- SAMURAI 2K AEROSOL LIMITED (SGX:1C3) Samurai 2K (SGX:1C3) Share Price Samurai 2K (SGX:1C3) Target Price Samurai 2K (SGX:1C3) Analyst Reports Samurai 2K (SGX:1C3) Corporate Actions Samurai 2K (SGX:1C3) Announcements Samurai 2K (SGX:1C3) Latest News Samurai 2K (SGX:1C3) Blog Articles : Only producer of 2K aerosol in ASEAN.
See report attached for details.
Cezzane SEE
CGS-CIMB Research
|
Colin TAN
CGS-CIMB Research
|
https://research.itradecimb.com/
2018-09-13
SGX Stock
Analyst Report
0.880
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1.250
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0.720
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0.720
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0.560