Friday, 17 February 2017

OPINION: LOCAL BANKS

This week, all three local banks reported their full year results for 2016. We have summarised the financial results of the banks below:



DBSOCBCUOB
NET INTEREST INCOME (S$M)730550524991
NET INTEREST MARGIN (%)1.81.671.71
NON INTEREST INCOME (S$M)418434373071
NON-PERFORMING LOAN RATIO (%)1.41.31.5
TOTAL ALLOWANCES (S$M)1434726594
NET PROFIT (S$M)423834733096
EARNINGS PER SHARE (S$)1.660.8221.85
DIVIDEND PER SHARE (S$)0.600.360.70
NET ASSET VALUE PER SHARE (S$)16.878.4918.82
  

Thursday, 16 February 2017

EQUITY RESEARCH: CHALLENGER TECHNOLOGIES

TARGET PRICE: S$0.50 (HOLD)

UPSIDE: 4%



Challenger Technologies reported their FY 2016 results yesterday. Net profit fell 27% from S$18.2m in FY2015 to S$13.2m in FY 2016. Revenue remained stable, declining slightly from S$352.2m to S$339.4m. Dividend per share increased to 2.7 cents, up from 2.65 cents a year earlier.

Monday, 13 February 2017

EQUITY RESEARCH: SINGPOST

TARGET PRICE: S$1.05 (SELL)

DOWNSIDE: 25%⬇




SingPost released its third-quarter results last Friday, with net profit for 9M FY16/17 falling 31.3% from S$143m to S$98.6m. The fall in net profit come despite a 22.8% rise in revenue, from S$833m to S$1,024m. In light of the falling profits, SingPost has declared an interim dividend of 0.5 cents, down from 1.5 cents in 3Q FY15/16.

EQUITY RESEARCH: COMFORTDELGRO CORPORATION

TARGET PRICE: S$2.17 (SELL

DOWNSIDE: 15%⬇


ComfortDelGro Corporation released their FY 2016 results last Friday, posting a 5% increase in net profit, with earnings per share rising to 14.72 cents, up from 14.1 cents in FY 2015. Dividend per share has increased from 9 cents to 10.3 cents. However, ComfortDelGro's management has cautioned that the operating environment ahead remains challenging. We have a sell call on the stock, given the increasing competition from private hire operators and the weak Pound.