Phillips Capital has
initiated accumulate on Hyphens Pharma with a target price of $0.435.
There are several investment merits into this company.
Firstly it has "exclusivity as regional product owner for proprietary brands and renowned brand principals from Europe and the United States."
Secondly, the "expansion of sales into B2C channel in Singapore will increase retail presence of Hyphens Pharma’s product portfolio."
Last but not the least, it has a "‘Asset-light’ business model that presents strong value creation."
DBS Equity Research
has maintained buy on Riverstone holdings with an increase in target price of $3.90.
One of the main reason is because of the huge demand and tight supply of gloves in the world. This will result in higher average selling price, thus margin for Riverstone. "Riverstone’s orderbook is fully locked in till June 2021.
Average selling price (ASP) and margins sky-rocketed to new territory amidst this pandemic outbreak. ASP has been on a rising trend since May 2020, due to the strong demand and tight supply."
In the longer term, "demand expected to be strong post COVID-19 as hygiene will still be a keen concern going forward.
On the other hand, Riverstone's cleanroom gloves will benefit from the insurgence of new technologies like 5G, Artificial Intelligence, and Internet of Things etc.
KGI has initiated
outperform on Silverlake Axis with a target price of $0.30.
Silverlake Axis has an "established core banking platform that provides recurring revenue." "Silverlake’s core business comprises of software development of core banking and payment processing.
In addition, the group generates revenue from the licensing fees of its enterprise software platforms. Following implementation of projects to customers, Silverlake subsequently secures contracts that earn a recurring fee from maintenance and enhancement services."
Moreover for the "FY21/22’s catalyst", it is in the achieving of Malaysia’s digital banking licenses. Digital transformation remains a key goal across many companies' agendas, and banks are not excluded.
Digital banks, by having little to no physical infrastructure, have strong potential to achieve improved operational efficiency over traditional banking businesses, thus having capability to provide more for less to customers.
KGI has
initiated an outperform on Singapore Medical Group (SMG) with a target price of $0.34.
As the home base is in Singapore, SMG continues to gain traction in Singapore, with a multitude of brands and clinics, and with little concentration risk.
While its focus remains on the women’s and children healthcare vertical, it has also successfully diversified its revenue streams into segments such as Dental, Diagnostics, and Ophthalmology.
Another compelling point is that SMG has started expanding overseas into Indonesia, Vietnam and Australia which bode well for the company.
As these ventures take off and contribute positively to SMG’s earnings, investors may expect a re-rating of its share price.
RHB has
maintained buy on China Aviation Oil with a target price of $ 1.25.
One of the main factors is that China’s domestic air traffic continues to see a recovery amidst nationwide efforts to resume work and aggressive fare promotions offered by airlines.
Based on information provided by the Shanghai Pudong Airport (SPA), the monthly flights handled by the airport increased 16% and 40% MoM in April and May, aided by a rising domestic traffic.
The US-based airlines have also recently announced plans to resume flights to SPA. United Airlines plans to resume services between San Francisco and Shanghai, with twice weekly flights starting from 8 July.
RHB is also sanguine that China Aviation Oil (CAO) is 'only' trading at
2021F P/E of 6.8x, way below the range of multiples of its global jet fuel supplying
peers which are trading between 9.4x and 11.8x.