Brokers' Take

Hi-P International | BUY

Nov 20 close: S$0.67

Target price: S$0.87

OSK-DMG Research, Nov 20

GIVEN its robust pipeline of projects, supported by the ramping up of Xiaomi - the world's third-largest mobile phone maker - and the upcoming worldwide launch of YotaPhone 2, we believe Hi-P is poised for a turnaround and reinstate our bullish view of a record Q4FY14. With a new factory in place to accommodate a shift in its product mix from plastic to metal components, we believe the gloomy days impacted by Motorola and Blackberry are over, with a brighter outlook ahead. As a result, we expect a robust FY15 with an over 200 per cent NPAT (net profit after tax) growth up to approximately S$40 million, which may bring down its recurring P/E (price-to-earnings ratio) to 13.5x. We think the share price is very attractive at current levels, especially given the company's potential turnaround.

Yoma Strategic Hldgs | BUY

Nov 20 close: S$0.695

Fair Value: S$0.74

OCBC Investment Research, Nov 20

MJAS has signed a 30-year concession agreement with Myanmar's department of Civil Aviation (DCA) for the operation, rehabilitation and maintenance of airport facilities, including terminal buildings and runway (excluding air traffic control), at Mandalay International Airport. Operations are scheduled to commence around March 2015. In addition, Yoma also completed a rationalisation of its Myanmar automotive businesses with First Myanmar Investment Company Ltd (FMI) and will acquire FMI's 30 per cent and 20 per cent stakes in Myanmar Motors and Summit SPA Motors Ltd, respectively. Pending more colour regarding the financial impact of these businesses, in particular the airport concession, we opt to keep our fair value estimate of S$0.74 unchanged.

Keppel Corporation | HOLD

Nov 20 close: S$9.15

Target price: S$9.00

Maybank Kim Eng Research, Nov 20

WE believe drillers will defer their orders for new rigs, given a weakening drilling outlook in a low oil price environment. We think the market will cut FY15 expected/FY16 expected order-intake forecasts, currently based on sustained high oil prices. Softening residential property markets in Singapore and China are added concerns. Still, Keppel remains a "hold" in view of its 4.8 per cent dividend yields and diversified exposure. Upside risks are a steep rebound in oil prices to above US$100/barrel, stronger-than- expected order wins and better execution leading to higher operating margins. Downside risks are order-win misses, deferred deliveries or cancellations, weaker-than- expected operating margins and further weakening of the property market.

Compiled by Chan Yi Wen

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.