First Resources (FR SP/HOLD/S$1.58/Target: S$1.65)

3Q21: Results below our and consensus expectations, dragged by spillover impact from lower ASP contracted during early-21 and higher cost of production.

FR’s 9M21 net profit came in below our and consensus estimates. We reckon that the negative variance was mainly due to the spillover impact from lower ASP contracted and the higher cost of production. Management also mentioned that the spiking fertiliser cost would dilute FR’s earnings moving forward. Maintain HOLD with higher target price of S$1.65, factoring in higher CPO prices for 2022-23.



Singapore Press Holdings(SPH SP/ACCEPT OFFER/S$2.33/Target: S$2.36/S$2.40)

Cuscaden returns with a superior offer.

Cuscaden announced that it had submitted an improved offer with a full cash offer of S$2.36/share or cash-plus-share offer of S$2.40/share for all of SPH’s shares, at a consideration of around S$3.9b. Both options are superior to Keppel’s original cashplus-share offer of S$2.35/share. Barring any new offer, we recommend shareholders to ACCEPT the highest offer, which is currently Cuscaden’s offer which provides higher consideration and price stability.


Uni-Asia Group(UAG SP/BUY/S$1.32/Target:S$2.34)

Incoming record-breaking 2021 and 2022; too cheap to ignore.

Uni-Asia provided a 9M21 update, which highlighted a potential record high in 2021. The incoming 4Q winter heating season in the northern hemisphere is expected to keep the dry bulk market busy; beyond that, we believe freight rates will stay elevated at least until end-22 given the favourable demand-supply imbalance. We are of the view that the company’s valuation is too inexpensive to ignore. Maintain BUY with an unchanged target price of S$2.34, pegged to 8x 2021F PE (-1SD to the mean).