Brokers’ take, Latest Business News - The New Paper

Brokers’ take

This article is more than 12 months old

Compiled by Navin Sregantan



JULY 3 CLOSE: $0.20


RHB Research Institute, July 3

Hyphens Pharma is one of Singapore's leading specialty pharmaceutical (pharma) and consumer healthcare groups with an Asean presence.

We believe the market is currently undervaluing the group's potential. As at Tuesday's closing, the stock was trading at 9.6 times FY19F P/E (compared to the industry average 17.8 times) and offers a decent yield of 2.8 per cent.

Hyphens' saw an increase in revenue across most of the products in this division, particularly in Vietnam.

We expect the growth momentum to continue in the near term, as it continuously reaches out to existing and prospective buyers.

Hyphens is exploring opportunities with new principals and distributing existing products in other markets.

The group launched five products in 2018, and has a few more in the pipeline for 2019. Two dermatological products - Ceradan Advanced and TDF Fairence T-Complex - are pending commercialisation.

We think the introduction of the former is something to look forward to this year.

Coupled with other new launches and its business expansion pipeline, we expect sales of Hyphens' proprietary brands segment to hit $24.4 million by FY2021, from $13 million in FY2018.



JULY 3 CLOSE: $0.74


UOB Kay Hian, July 3

The latest F&B service index (FBSI) data from Singstats indicates that "other eating places", which excludes restaurants, fast food outlets and caterers, is showing a healthy growth trend since Q4 2018 compared to the first three quarters of 2018.

On the other hand, the restaurant industry's growth is declining. This could indicate that consumers are switching to lower-value dining options amid a weaker economic backdrop.

We remain positive on Koufu's ability to deliver a 19 per cent earnings per share (EPS) growth in 2019, backed by: a) robust growth in the F&B macro data, b) better performance in the food court management segment on full-year contribution from Rasapura and new outlets, and c) stronger F&B retail segment from turnaround at both R&B Tea outlets and Elemen restaurants.

Risks to the recommendation include failure to renew leases, inability to secure new outlets, departure of key tenants and food stalls, changing preferences of consumers, higher-than-expected competition, and execution risks on expansion plans.

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision.

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