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UMS Holdings – Preparing for growth (UMSH SP, CP SGD1.38, BUY, TP SGD1.71, Technology)

3Q21 PATMI of SGD15.1m (+17% YoY) was in line with our estimate and ahead of consensus’. 9M21 PATMI accounted for 71%/76% of our/ street’s FY21E. We maintain FY21E, but increase FY22-23E EPS by 2-8% to factor in i) increased capex and still robust semicon equipment outlook, and ii) a higher labour cost environment. 4Q21 should be sequentially stronger. Maintain BUY with a higher TP of SGD1.71 (15x FY22E P/E).

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Q&M Dental Group – Revert to core (QNM SP, CP SGD0.58, BUY, TP SGD0.78, Healthcare)

Q&M’s 3Q21 net profit of SGD9.5m (+68.7% YoY; +13.5% QoQ) was largely in line with MKE and street’s expectations. This took 9M21 earnings to SGD27.3m (+98.3% YoY) and achieved ~78% of our full-year estimate. The Group declared a third DPS of 1.0¢ (9M21: 3.0¢), translating into an attractive yield of 6.9%. Maintain BUY with a lower TP of SGD0.78, based on 22x FY22E P/E, which implies ~15% discount to its peers.

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First Resources – 3Q21 core PATMI caught up (FR SP, CP SGD1.58, HOLD, TP SGD1.68, Plantations)

3Q21 core PATMI caught up and met ours but slightly below consensus expectations. With still elevated CPO ASP, FR’s 4Q21 EPS will likely be flat-to-higher QoQ. We lower our TP to SGD1.68 on lower 13x FY22 PER pegged at -1SD of its updated 5Y mean (previously 14x FY22 PER at -1SD of 5Y mean). Given limited upside, FR remains a HOLD. We prefer Bumitama Agri (BAL SP, CP: SGD0.57, Buy, TP: SGD0.93).