#3 Q&M Dental Group
Maybank Kim Eng has
maintained its Buy rating on the company with a target price of $1.03.
Expansions of the company is on track, which is a good sign for good valuation." Total revenue doubled to SGD50.8m, driven by higher turnover in its core dental division (+86% YoY) and estimated contribution of SGD10-11m from the testing business (1Q21: SGD2-3m; 1H20: NIL).
In Jun ‘21, the Group opened one clinic in Jurong Yuhua. It has also secured locations to open
six more dental clinics island-wide and is expected to commence operations by 4Q21. YTD, Q&M has added 10 clinics to its network and it’s targeting to open another 10 by 4Q21."
>> Read more about the company here.
#4 Comfort Delgro
CGS CIMB has maintained its
ADD rating on the stock with a target price of $1.80.
The listing of its Australian subsidy is the main driver of the positive sentiment. "To date, CD has invested a total of S$1.17bn in Australia. CD’s Australia bus business had a total of 2,606 buses across Sydney, Melbourne, Darwin and Queensland as at end-FY20; 84% of its fleet operates on contract routes. CD also had 202 nonemergency patient transport vehicles and 397 taxis in Australia as at end-FY20.
Despite the bushfires and Covid-19, Australia was the best performing overseas location for the CD group in 2020. In 1H21, CD’s Australian business generated S$37.9m operating profit (+392% yoy), almost back to 1H19’s levels (S$38.4m).
Management said key reasons for the strategic review were: 1) the assets have matured, reaching a scale that could allow value unlocking, and 2) Australian operations demonstrated strong resilience despite the pandemic. CD remains committed to grow its operations in Australia."
>> Read more about the company here.
#5 Thai Beverage
UOB Kay Hian has
maintained its BUY rating on the stock and with its target price at $0.92.
The company's robust operations and resilient were the reasons for the analyst to provide a good valuation. "Thai Beverage (THBEV) provided a business update, but full financials were not released. 9MFY21 EBITDA (excluding associates’ contribution, including other income) of Bt36.6b (+12% yoy), made up approximately 83% of our full-year estimates.
This was in line with expectations given a seasonally weaker 4Q. 3QFY21 EBITDA was up (+20% yoy) from a low base. Recall that 3QFY20 saw the total alcohol ban in Thailand for approximately one month. On a qoq basis, EBITDA was up 3%"
Furthermore, " revenue increased to Bt60.8b (+15% yoy) in 3QFY21, largely supported by the huge uptick in alcohol volumes from a low base. On a sequential basis, revenue was up slightly (+2% qoq)."
>> Read more about the company here.
#6 Koufu Group
UOB Kay Hian has maintained
its BUY rating on the company with a target price of $0.77.
The main driver of the sentiment was the "above expectations" results and "sequential improvement trend intact."
"Koufu reported 1H21 earnings of S$9.9m (+291% yoy/+35% hoh). The results were above expectations, forming 67% of our full-year forecast, mainly due to higher-than-expected other income, which include: a) government grants of S$4.4m; b) renovation income of S$1.6m; and c) gains from the disposal of assets of S$0.7m.
We continue to see sequential improvement of earnings hoh (S$9.9m in 1H21 vs S$7.4m in 2H20) and revenue hoh (S$106m in 1H21 vs S$103m in 2H20). We expect this trend to continue, led by the gradual reopening of economies."
>> Read more about the company here.
#7 Wilmar International
UOB Kay Hian has
maintained its BUY rating on the company with a target price of $6.40.
The extremely positive sentiment is because of the "feed & industrial product segment is expected to continue to perform with positive downstream margin and high selling prices.
This is also further supported by the sustained strong demand from the tropical oils businesses"
"Plantation and sugar milling segment is expected to continue leveraging on the high palm oil and sugar prices.
On top of that, 2H production for palm would come in higher hoh and the sugar milling season also started since late-Jun 21.
The sugar milling operation is still expected to perform better yoy as the much higher sugar prices should be able to offset the impact from lower sugar production due to the adverse weather."
>> Read more about the company here.
