As agreed, I will try to compile all the emails in one mail for convenience.
For oil and gas counters, given crude oil prices are low, you can use the following P/E ratios as a guide:
P/E ratios indicates Price divided by Earnings.
Thus the lower the P/E ratio, the cheaper the share is. It does not mean cheap is good or bad. But it is a price ratio investor will be willing to pay for the company's earning power. And for oil companies which are supressed by market conditions, the ratios above can be used as a reference when trading the shares.
KEY HIGHLIGHTS
Sector
Aviation
Steep decline in SIA’s pax traffic leads to the largest drop in load factor; negative implications for SATS and SIAEC.
Small/Mid Cap Highlights
Sheng Siong Group (SSG SP/HOLD/S$1.06/Target: S$1.13)
A cash cow in a crowded space.
At A Glance
Corporate
Keppel Corporation: Sells Shanghai mall stake for S$73m profit.
ST Engineering: CEO Tan Pheng Hock to step down on 30 September.
Sector
Property: EC sales shine in a dull August.
Economics
Economy: Car sales drive July retail sales up by 2.8% yoy.
Economy: More job-seekers than jobs - a first since 2012.
Politics: Government makes two key modifications to eligibility proposals.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36136&h=59dde4945f938af0224dc8f323348f35
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36166&h=9b0af1ad2884203ca74fa99d775de8fa
Good morning,
https://research.uobkayhian.com/content_view.jsp?id=36162&ety=cty&h=5127a926ccdb6ec533a654008339c1dd&back=%2Fcontent_latestresearch.jsp%3Fety%3Dcty%26cty%3DSG
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36137&h=115627429ce0a6b0c876779fc835f1e1
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
For oil and gas counters, given crude oil prices are low, you can use the following P/E ratios as a guide:
- Profit making companies: P/E ratio approx = 0.5
- Loss making companies: P/E ratio approx = 0.3
- Bankrupt companies: P/E ratio approx = 0.1
P/E ratios indicates Price divided by Earnings.
Thus the lower the P/E ratio, the cheaper the share is. It does not mean cheap is good or bad. But it is a price ratio investor will be willing to pay for the company's earning power. And for oil companies which are supressed by market conditions, the ratios above can be used as a reference when trading the shares.
KEY HIGHLIGHTS
Sector
Aviation
Steep decline in SIA’s pax traffic leads to the largest drop in load factor; negative implications for SATS and SIAEC.
Small/Mid Cap Highlights
Sheng Siong Group (SSG SP/HOLD/S$1.06/Target: S$1.13)
A cash cow in a crowded space.
At A Glance
Corporate
Keppel Corporation: Sells Shanghai mall stake for S$73m profit.
ST Engineering: CEO Tan Pheng Hock to step down on 30 September.
Sector
Property: EC sales shine in a dull August.
Economics
Economy: Car sales drive July retail sales up by 2.8% yoy.
Economy: More job-seekers than jobs - a first since 2012.
Politics: Government makes two key modifications to eligibility proposals.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36136&h=59dde4945f938af0224dc8f323348f35
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36166&h=9b0af1ad2884203ca74fa99d775de8fa
Good morning,
- SIA (SIA SP) surprised with a sharp decline in pax traffic and the steepest decline in pax load factor in more than three years. We cut our pax traffic estimates from -0.5% to -2.4% for FY17. Consequently, our FY17 net profit forecast is lowered by 22% and we reduce our target price to S$10.00 (from S$10.20).
- SIA’s weak performance also implies downside risk for SATS’ (SATS SP) and SIAEC’s (SIE SP) earnings should Changi traffic weaken. SIA's weaker loads could also lead to lower unit meals for SATS. Similarly, SIAEC's line maintenance revenue could fall if SIA cuts capacity in response to lower loads.
- We maintain SELL on SIAEC (TP: S$3.40). We also suggest investors top-slice their holdings on SATS and buy on weakness, near S$4.10-4.20.
- We continue to value SIA at 0.73x FY17 book value ex-SIAEC, 1SD below mean P/B. Suggested entry level: S$9.00.
https://research.uobkayhian.com/content_view.jsp?id=36162&ety=cty&h=5127a926ccdb6ec533a654008339c1dd&back=%2Fcontent_latestresearch.jsp%3Fety%3Dcty%26cty%3DSG
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36137&h=115627429ce0a6b0c876779fc835f1e1
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
