Raffles Medical Group
Price – $1.47
Target – $1.66

Raffles Medical Group (RMG) recently announced the acquisition of a 28,000 square meters land site in Chongqing with an in-construction building for Rmb188m, meant for the construction of a 700-bed international tertiary general hospital targeted to be completed by 2Q18. The Raffles Hospital extension is on track for completion by Aug-17 which will contribute an additional 220,000 square feet of gross floor area to Raffles Hospital. Meanwhile, RMG remains positive on the performance of Raffles Holland V medical centre with about 95% of the space being leased out. Despite RMG’s near-term earnings outlook likely to be dampened with higher staff costs and other miscellaneous expenses, long-term growth is expected from end-18 onwards with the completion of its new hospitals in Shanghai and Chongqing. Maintain BUY. UOB-Kay Hian (10 Apr)

Thai Beverage Public Company
Price – $0.94
Target – $1.10

With the 100-day mourning period now over, we expect alcohol consumption to normalise following the Songkran festival. Furthermore, the new excise tax hike poses an opportunity for Thai Beverage Public Company’s (ThaiBev) management to raise prices which in turn would increase gross margins. It is noteworthy that the rebranding exercise for Chang beer in 2015 raised its market share from 28% to 40% in just one year. On that note, we believe that this segment would continue to be a key growth driver. Management cited that its non-alcohol beverage business is expected to turn earnings before interest & taxes positive in 2018, while the pending asset swap of Frasers Centrepoint with Fraser and Neave (F&N) may allow ThaiBev to leverage on the F&N product range and distribution network in Malaysia and Singapore. In addition, potential acquisition of Vietnam’s state-owned Saigon Beer Alcohol Beverage Corporation as well as raising F&N’s stake in Vinamilk could be key catalysts to the stock price. Maintain BUY. RHB Research (10 Apr)

Frasers Centrepoint
Price – $1.76
Target – $2.00

We believe that Frasers Centrepoint’s (FCL) latest residential project – Seaside Residences, will garner good buyer interest following an uplift in Singapore residential market’s sentiment after the government policy relaxation as well as upgrades to gross domestic product forecasts. In addition, Frasers Tower, being the only major building completing in the Central Business District in 2018, is likely to do well in the midst of a decline in competitive supply that year. While most developers have re-rated to an average of 0.9 times price-to-net-asset-value (P/NAV), FCL still trades at attractive valuations of 0.7 times P/NAV and 12 times FY17F price-to-earnings ratio, as well as offering one of the highest dividend yields among developers at 5%. This implied that the market has broadly overlooked the potential of its upcoming Singapore projects. Maintain BUY. DBS Vickers (7 Apr)

mm2 Asia
Price – $0.50
Target – $0.60

mm2 Asia’s (mm2) subsidiary UnUsUaL Productions (UnUsUaL) is aiming to expand regionally by penetrating into other markets such as Malaysia, Hong Kong and second tier Chinese cities which can command bigger budgets, as well as developing its own intellectual properties in the form of musicals and format events. Although mm2’s initial 51% stake in UnUsUaL will be diluted to 41.9% upon the spin-off, we believe UnUsUaL will be set on a stronger growth trajectory and thus benefitting mm2 with a higher earnings contribution. Other notable projects in the pipeline include mm2’s partnership with Starhub and Astro to produce Singapore/Malaysia versions of “The Voice” and the fourth instalment of the popular local movie franchise “Ah Boys to Men”. If successful, higher production bonus and returns can be expected from these productions. Maintain ADD. CIMB Securities (6 Apr)