Phillip Capital has
maintained buy on Yoma Strategic at a target price of $0.49.
Yoma Strategic is supported by several factors.
"Yoma Land’s revenue is well supported by backlog of unrecognized revenue." "Unrecognised revenue now amounted to US$17mn as at 3Q20 vis-à-vis more than US$20mn in 2Q20.
Real Estate Services revenue was lower YoY due to lower occupancy levels and rental rates at Pun Hlaing Estate and StarCity. However, the lower rental rates and the amenities and services offered amidst COVID-19 had driven a partial recovery in occupancy levels in recent months."
Also a good point to note is that "revenue from Yoma Financial Services increased by 5.6% YoY underpinned by an enlarged finance lease portfolio in Yoma Fleet; Wave Money remains
EBITDA positive despite weaker transaction numbers".
KGI report though has no formal rating on Jiutian Chemical, it has given an
estimated fair value of $0.068 for the company.
There is likely going to have a "performance U-turn. Gross profit increased by RMB 31.2 mn mainly due to a 20.5% decrease in purchase price per ton of methanol, one of the key raw materials, resulting in lower costs of production for DMF and Methylamine in 2Q20."
In addition, it is expected that there will be "higher utilization going into 2H20
. The group reported a drop of capacity utilization from 75% to 56% in 2Q20." "However, the company issued a clarification on 20 August 2020 that the 56% utilization rate refers to the average over the 3 months in 2Q20.
It was in line with demand situation at the start of the economic re-opening in China, from the depths of the Covid-19 outbreak. Utilization rate has since been raised in response to the rising demand for its products."
UOB Kay Hian has
maintained buy on Fu Yu Corporation at a target price of $0.29.
The company is in an enviable "strong cash position (55% of market cap) and attractive dividend yield. The group has declared an interim dividend of 0.35 S cents per share in 1H20, unchanged from 1H19."
"Backed by its strong cash flow generation", the company offers an attractive and sustainable dividend yield of 6.5% for 2020F.
Furthermore, the Fu Yu has further streamlined its operations in China. "The group consolidated its Shanghai and Suzhou manufacturing operations towards the end of 2019, which has proven to benefit its cost structure and has provided a buffer from the slowdown in business resulting from COVID-19."
CGS CIMB has
maintained an Add rating on Propnex Ltd with a target price of $0.708.
The consensus is mainly due to 2 positives.
Firstly, the company is "increasing income from higher-yielding project marketing services." The company "saw its commission income from project marketing services jump 148% yoy to S$49m, which accounted for c.47% of its topline as the group continued to gain market share.
This more than offset a 23% yoy decline in agency services on slower private and HDB resale and leasing transactions due to the initial impact of the nation's circuit
breaker."
Secondly, the company is also "gaining market share through successful marketing strategies." The company's " strategy to attract potential buyers with its online webinar trainings and consumer events had enabled it to increase its market share.
Management shared that Propnex had captured c.53% of the new launch segment from Apr (during the circuit breaker period) to Jul 2020."
RHB Capital
has maintained a buy rating on Wilmar International Limited with a target price of $5.45.
This is at the back of positive business outlook. " Management expects the super-normal margins for
oilseeds crushing to be maintained for another few months, on low cost inventories and the rising demand for feed and oil.
Consumer pack volumes in China also continue to chart positive YoY growth into 2H20, as some of its new products gained traction during the lockdown."
Moreover, "demand for medium and bulk packs from the hotel, restaurant and catering (HORECA) industry should also improve from 2H20 and in FY21F, as more countries ease their restrictions on movement.
Improvement in CPO and sugar prices should also support earnings for its plantation and sugar milling segments."
RHB Capital has
maintained buy on Food Empire at a target price of $0.75.
The earnings of the company is expected to "to pick up in 2H20F." "As Russia eased its restrictions, management highlighted that July and August sales have recovered to >90% of pre-COVID levels."
The management has also turned to more prudent initiatives through cost cutting measures.
"In view of the challenging operating environment brought upon by the COVID-19 pandemic, management focused on profitability and rationalised sales-related expenses.
General and administrative costs also dropped by USD2m, as it cut manpower, transportation and travel costs during this period. "