Brokers' take

Pan-United Corp | Hold

Target price: S$0.56

Sept 29 close: S$0.615

DBS Group Research, Sept 29

We upgrade our recommendation from "fully valued" to "hold". Post visit to Pan-United's port, we turn slightly more positive on overall earnings supported by better port business. While Basic Building Materials (BBM) has declined, the port was able to mitigate and support group earnings. We do not see further dividend cuts as we have already factored in a dividends per share decline that should well account for lower earnings and capex requirement. We raise earnings for the port on better volumes and utilisation which results in a 1-5 per cent earnings increase. Our sum of the parts-based target price is raised to S$0.56, representing a -3 per cent downside including dividends . . . Our visit to Pan-United's port validated that growth drivers are intact. Growth has been driven by improving volumes and strong port utilisation, led by its ability to secure new accounts and cargo. The port is c…