Local Brokerages Stock Call 28 August 2013

From OCBC:
Goodpack Limited: Decent FY13 results
Goodpack’s FY13 results were in-line with expectations. Revenue grew by a smaller 7.7% YoY to US$190.9m while PATMI improved 13.4% YoY to US$51.3m as its cost saving initiatives helped to offset higher depreciation and financing costs from a larger fleet and increased borrowings respectively. Similar to last year (FY12), management declared a final dividend of 2 S cents and a special dividend of 3 S cents. Although we lower our revenue forecasts for FY14, we still expect growth improvement following the commencement of key clients’ synthetic rubber (SR) operations in Singapore and a new SR contract in Russia. In terms of margins, we only expect a small drop-off as continued cost saving initiatives should keep a lid on logistic and handling expenses. In light of its unchanged fundamentals and recent share price correction, we maintain BUY on Goodpack with a slightly lower fair value of S$1.69 (S$1.80 previously). 

From Maybank KE:
Sino Grandness: Ready, Willing And Able; Buy, $1.05 - TP $1.89
SFGI SP | Mkt Cap USD240.2m | ADTV USD1.4m
Reiterate BUY and SGD1.89 TP. In light of the recent short seller’s
attack  on  China  Minzhong,  Sino  Grandness’ management has been very
responsive  and  open  in  dealing with investors’ concerns and readily
agreed to hold a conference call with our clients yesterday despite the
extremely short notice given to them.
In  all, the conference call was organised within 90 minutes and 20
clients participated. We think the information shared by management was
helpful  and  informative, and should go a long way to calming investor
concerns.
In our view, the share price drop in the past two days was purely
due to fallout from the Minzhong short selling incident. Fundamentals
are still firm and the biggest catalyst, the Garden Fresh IPO, still
lies ahead. We believe Sino looks more attractive today compared to
last week.
  
Wing Tai: Sturdy as a Tembusu Tree; Buy, $2.04 - TP $2.78
WINGT SP | Mkt Cap USD1.2b | ADTV USD1.2m
We  reiterate  our  BUY  recommendation  on Wing Tai, with a slightly
higher  TP  of  SGD2.78,  pegged  to  a 30% discount to RNAV. A bumper
dividend  of  12  cts/share  has  been  proposed,  translating  to  an
attractive FYJun13 yield of 5.9%.
Its  FYJun13  core  PATMI  of  SGD294m was in line with expectations.
Having achieved SGD885m worth of property sales in FY13, Wing Tai went
on  to  launch  The Tembusu in mid-August. 220 units have been booked,
with an ASP of ~SGD1,500 psf.
The  Group  will  remain  selective in land acquisitions. Malaysia is
deemed   its   most   attractive  market  in  the  near-term  for  new
investments,  but  the Group will continue to explore opportunities in
Singapore, HK and China. 

From DBS:
FY13 results for Goodpack slightly above. The key variants
were the US$1.4m disposal gain of PPE and US$0.9m
forex gain in 4Q13. Goodpack is on track to achieve
volume growth of 250k boxes in FY14, underpinned by
the firm ramp up of new SR markets in Singapore and
Russia. It is also gaining traction in the autoparts market.
Maintain BUY with higher TP of S$2.00. The finalisation of
autopart contracts serve as an imminent catalyst.

2Q13 results for IHH Healthcare within expectations.
EBITDA margins improved with positive contribution
from new hospitals. Novena hospital turned in RM2m
EBITDA profit, on track for positive contribution in FY13.
Maintain HOLD, TP adjusted to S$1.50 (Prev S$ 1.55),
accounting for recent currency effects. While we believe
the long term prospects for healthcare remains positive
and IHH commands a premium due to its scarcity and
geographical spread, the stock is already trading at
43x/36x on FY13F/14F earnings.