Brokers' take

Yangzijiang Shipbuilding | Hold

Target price: S$0.81

Sept 8 close: S$0.79

OCBC Investment Research, Sept 8

IN the past few months, Yangzijiang Shipbuilding has streamlined its business, first disposing of its real estate development assets, next selling its indirect interest in PPL Shipyard and finally disposing of its entire 20 per cent interest in Jiangsu Hailan Marine Systems Technology. Management had previously mentioned its desire to leave the real estate business after its earlier foray into this area, and it is also no surprise that the group is giving up on rig building for now, given the poor industry outlook and the fact that its only newbuild jack-up rig is still idle in the Taicang yard after repeated delivery deferrals. Ever since our rating downgrade on Aug 8, YZJ's share price has lost about 11.4 per cent of its value versus the Straits Times Index's 2.3 per cent rise. We update our RMB/SGD assumptions and our fair value estimate correspondingly drops from S$0.87 to S$0.81.

CEI | Add

Target price: S$1.04

Sept 8 close: S$0.84

CIMB Research, Sept 7

CEI derives about 50 per cent of its sales from the medtech/life science sector; its customers' products are used for chromatographs, analysers and atomic absorption. These products are typically deployed in the fields of drug discovery, materials research, food safety control, forensics and others. Many of CEI's key customers have been with the company for about 10 to 20 years. The key business risk is order push-back by customers due to global economic conditions. Given its fragmented shareholding structure and strong cash-generation capability, the company is likely to be receptive to discussions from private-equity firms who may have a fit for CEI in their portfolio.

Singapore O&G | Buy

Target price: S$1.43

Sept 8 close: S$1.15

UOB Kay Hian Research, Sept 6

WHILE Zika is generally a mild disease, an infection during pregnancy may cause more serious complications such as birth defects in unborn children. With the outbreak quadrupling to over 200 cases in less than a month, we checked with Singapore O&G (SOG) to find out how the outbreak has impacted its obstetrics operations. We understand that it is still business as usual at its clinics. A prolonged outbreak of Zika could alter the pattern of family planning, which may impact SOG's obstetric business in the longer term. However, we reckon such a risk would be well managed, given SOG's diversified business model. The recent share pullback offers entry opportunity.

Compiled by Jamie Lee

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.