September 20, 2021
Rise and Shine For The Week Ahead (20 Sep)
“Hot” On The Plate US stocks pulled back from record highs. This is the second consecutive […]
What happened in markets this week, and what are analysts talking about?
•KGI; Upgrade to Outperform with higher TP S$0.43 The House thinks 1Q21 earnings for Hyphens looked promising after the Group delivered its highest ever quarterly sales in 1Q with a 6.3% profit margin as demand in Vietnam recovers. The Group is expanding its proprietary brands which have the highest product margins and is partnering with WellAway Pharmacy to ride on the quick expansion of telehealth. TP of S$0.43 is based on 17x P/E on FY2022F forecasts
• UOBKH; Initiate Coverage with BUY and TP S$0.94. The House thinks that Q&M is on track for record core earnings in 2021 with the dental business delivering robust growth from new dental outlet openings and strong local demand. There is also a new growth engine with COVID-19 testing and test kits business. Stock is trading at -1SD below its long-term mean of 16x FY22F PE and offers a dividend yield of 5.2%. TP of S$0.94 is pegged to 20x FY2022F PE (average PE)
• Lim & Tan; Initiate BUY with TP S$0.84. The House has a TP of S$0.84, pegged to 0.75x P/B, which is a 36% discount to construction peers and also represents the previous takeover valuation of a much weaker and unprofitable peer at the trough of the construction cycle. Tiong Woon currently trades at 0.4x P/B despite being profitable and extremely cash-generative. Tiong Woon is a one-stop integrated heavy lift specialist and service provider that supports O&G petrochemical, infrastructure and construction sectors.
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