UOL Group
Price – $6.65
Target – $7.68

UOL Group’s (UOL) FY16 net profit of $287m was broadly in line with our estimates as softer-than-expected development margins were offset by positive income variance from associates. Furthermore, net profit was dampened by non-recurring charges associated with the acquisition of Holborn Island and impairments to its Bishopsgate project. UOL indicated that sentiment for Singapore’s residential market is improving and there has been strong interest for its new launch at The Clement Canopy. We believe that by focusing on mid-to-mass market projects and by adopting the right pricing strategy, UOL is able to achieve faster sales to drive quick inventory turnover, which lowers development risks and allows quick recycling of capital. We continue to like the group’s strong recurring income stream of around $300m a year which acts as a buffer amidst the challenging market conditions. Maintain BUY. Maybank Kim Eng (27 Feb)

Cache Logistics Trust
Price – $0.81
Target – $0.77

Cache Logistics Trust (Cache) has announced the divestment of Cache Changi Districentre 3 (DC3) at $25.5m, which is expected to be complete in 1Q17. Meanwhile, dispute with Schenker relating to 51 Alps Avenue continued to weigh on earnings. Together with higher property expenses and financing costs, FY16 distribution per unit (DPU) declined by 9.1%. Correspondingly, net asset value (NAV) per share also dropped 11.4% mainly attributable to loss from Singapore assets revaluation. As a result of the lower NAV, gearing ratio inched higher to an uncomfortable level of 43.1%. We believe that the manager may undertake an equity fund raising to pare down its gearing, leading to DPU dilution. Although yields are attractive at above 9%, we revised our target price down in consideration of the uncertainties owing to Schenker dispute, NAV decline as well as potential equity fund raising. Maintain HOLD. DBS Vickers (24 Feb)

Ezion Holdings
Price – $0.395
Target – $0.45

Ezion Holdings (EZH) reported a net loss of US$66.6m for 4Q16 and US$33.6m for FY16. Excluding impairment charges, forex gain and loss on disposal of asset held for sale, core registered a net loss of US$9.2m for 4Q16 and a net profit of US$8m for FY16 respectively, felling below our expectations. The group recorded an impairment charge of US$70.9m, mostly related to deposits on equipment relating to its four postponed newbuilds. Meanwhile, EZH freed up US$270m in capital expenditure (capex) by indefinitely postponing the construction of four service rigs, and has successfully renegotiated its net annual principal repayment with its bankers to match with their operating cashflows. Given a lower likelihood of large impairments amid the improving oil price outlook, capex cut and improved cash flow situation, we expect to see an earnings recovery starting from 2Q17 onwards. Upgrade to BUY. UOB-Kay Hian (24 Feb)

Sembcorp Industries
Price – $3.36
Target – $4.17

Sembcorp Industries (SCI) has completed and commissioned 3,000 megawatts and 40,000 cubic metres per day of power generation and water capacity respectively in FY16, inclusively of two 1,320 megawatts thermal plants in China and India. Although FY16 was a low year for SCI’s marine segment with only $320m of new orders secured, we expect orderbook replenishment in FY17 to improve lifted by the stabilisation of crude oil price. The expected recovery in the marine segment earnings should provide growth for SCI, supported by stable earnings from its utilities segment. Key risk would be a lower-than-expected orderbook replenishment and capacity factor for its marine and utilities segments respectively. Maintain BUY. RHB Research (24 Feb)