Brokers' take

Fu Yu Corporation | Buy (maintained) Sept 16 close: S$0.225 Target price: S$0.285 UOB Kay Hian, Sept 16

In July, Fu Yu started voluntary liquidation of 40 per cent-owned Berry Plastics in Malaysia. We expect the process to be completed by end-2019 and the earnings drag from the joint venture should drop from a S$0.8 million loss in 2018 to S$0.5 million loss in 2019 and to zero in 2020.

Fu Yu will be renewing its leases for 7 & 9 Tuas Drive 1 for another 20 years from 2021. It will sell 5 Tuas Drive 1 by 2020 to comply with the lease renewal term.