What’s on the table
Allgreen(S$1.5 -3Q07 results- Heightened sector risks deter upside potential 3Q07 core EPS of 2.0cts is in line with our estimates, making up 25% of our full-year forecast. We believe this is within the street's expectations as well. Revenue for 9M07 grew 24% yoy to S$426m powered by 1) higher selling prices achieved for its residential projects such as Cairnhill Residences and Blossoms @ Woodleigh and 2) improving rental rates and occupancy in Great World City. Balance sheet is strong at 0.35x net gearing and should aid further land-banking opportunities when needed. AG plans to launch the The Cascadia overseas first before returning to Singapore. We expect ASP to be around S$1,500 psf. W e believe the pace of transaction volumes is likely to moderate going forward in light of the recent withdrawal of DPS. We tweak our ASP assumptions downwards for AG's up-coming launches by 5% and adjust our profit recognition schedule. O ur FY07 core EPS estimate is consequently lowered by 24% while FY08-09 numbers are raised by 6-32%. Our end-CY08 RNAV and target price is trimmed by 7% to S$1.57. Valuation looks rich at current levels. Downgrade from Neutral to Underperform.
Quick Takes
· Jiutian (S$0.59) - 3QFY07 results - Difficult quarter but long-term growth intact
· Chemoil Energy (US$0.50) - 3QFY07 results - Disappointing results
· ST Engineering (S$3.7 - 3QFY07 results - Quality stock
· Inter-Roller Eng (S$0.775) - 3QFY07 results - Dampened by delayed orders
· Longcheer (S$0.62) - 1QFY08 results - Strong shipment volumes lift results
· Goodpack (S$2.05) - 1QFY08 results - No visible catalysts
· SingTel (S$3.96) - 2QFY08 results - Strong follow-through
News of the Day
· Sinostar posts 40.2% drop in Q3 profit
· Apex-Pal to expand outlets by 15% globally next year
Friday, November 9, 2007
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