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  Bookmark this page   Saturday, 30 Aug 2014
 
Today's Headlines
ECS Holdings: Positive outlook to favour ECS

According to IDC, the server market is experiencing the start of an infrastructure refresh cycle as systems that were deployed shortly after the financial crisis are retired and replaced, which is expected to continue into 2015. The top five server vendors holding more than 75% of total worldwide server market share are also vendors of ECS. Since turning its focus from distribution to enterprise segment last year, we believe ECS is poised to capture the growth arising from growing demand for servers alongside with its vendors. Furthermore, with the expected strong pipeline of new Apple products, we believe ECS will see growth. Hence, we revised our FY14 and FY15 PATMI forecast upwards by 2% and 7%, respectively. As we expect the growth to be more significant in 2015, we rolled forward our valuations to 6x FY15F EPS to derive an increased new fair value estimate of S$0.68 (prev. S$0.61), supported by a decent FY14F dividend yield of 3.7%. Upgrade from Hold to BUY.

 
  Market Pulse
Market Pulse: OSIM International (28 Aug 2014)
Market Pulse: CCT (27 Aug 2014)
Market Pulse: Ascott Residence Trust (26 Aug 2014)
Market Pulse: SIA (25 Aug 2014)
Market Pulse: A-REIT (22 Aug 2014)
Market Pulse: SG Property, Bumi Armada Bhd (21 Aug 2014)
Market Pulse: KSE, Biosensors, KSH, Lian Beng (20 Aug 2014)
Market Pulse: United Envirotech, Nam Cheong (19 Aug 2014)
Market Pulse: Midas, Dyna-Mac (18 Aug 2014)
Market Pulse: POSH, Genting, Golden-Agri, Midas, Dyna-Mac, Tat Hong, KSE (15 Aug 2014)
  Research
ECS Holdings: Positive outlook to favour ECS
According to IDC, the server market is experiencing the start of an infrastructure refresh cycle as systems that were deployed shortly after the f ...
OSIM International: Zero-coupon convertible bonds issued
OSIM International Ltd (OSIM) announced that it has issued S$170m in principal amount of zero-coupon unsecured convertible bonds (CBs) to institut ...
CapitaCommercial Trust: Credit rating upgraded by S&P
Earlier this week, S&P announced that it had upgraded CCT’s long-term corporate credit rating from ‘BBB+’ to ‘A-‘ with a stable outlook. The ratin ...
Ascott Residence Trust: Expecting a brighter 2H14
Ascott Residence Trust (ART) announced last week that it has completed the acquisitions of the serviced residence property (SR) in Malaysia and tw ...
Singapore Airlines: Remain cautious despite recent partnerships’ development
The recent progress on Singapore Airlines’ (SIA) partnerships with TATA and Air New Zealand (Air NZ) seems hopeful, but we remain cautious on SIA’ ...
Ascendas REIT: Adding Aperia to portfolio
Ascendas REIT (A-REIT) recently announced the completion of acquisition of Aperia, a newly completed integrated mixed-use development in Kallang i ...
 
 Strategy
Singapore Property: Further enhancement of Singapore’s outer regions
Over the last week, the authorities highlighted their various plans to transform the Jurong Lake District into a key regional center and also anno ...
Singapore Property: Deep value in West Orchard could be unlocked
With a dearth of upcoming projects in the Orchard retail space pipeline over 2015-17, we believe there could be a greater impetus for strategic re ...
Singapore REITs: Performing a reality check
Our assessment of the recent performance of S-REITs show that their fundamentals have generally remained sound, and S-REITs continue to benefit fr ...
Singapore Residential Property: Demand is out there but price-sensitive
We forecast residential prices to dip 10%-20% over 2014 – 2015 but see a price crash in excess of 20% to be unlikely, even after accounting for th ...
Strategy: Impact of Iraq conflict on companies
Oil prices have been more volatile of late due to the conflict in Iraq, with WTI crude rising close to about US$107/bbl and Brent US$113/bbl last ...
Consumer Sector: Run-up in valuation levels reminiscent of 2H13
We believe regional consumption growth ahead in China and selected ASEAN (Singapore, Malaysia, Indonesia, Philippines and Thailand) economies will ...
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