1. iFast Corporation
Although the company’s China operations were a drag, RHB Research thinks the “worst may be over”, probably because its net profit after tax (NPAT) climbed 22.5% year-on-year in 3Q17.
Furthermore, the company’s total assets under administration (AUA) hit a record high of $7.16 billion, up 19.3% year-on-year. Net sales in 9M17 also skyrocketed almost four-times ($170 million to $649 million).
That’s not all. RHB Research and the company believe the “current AUA level remains small”, considering Singapore’s wealth management industry and other markets.
Nevertheless, the company’s losses in the early phases of its China operations coupled with its high stock price don’t warrant an upgrade from RHB Research’s current NEUTRAL call.
RHB Research: iFast Corporation Limited (SGX: AIY) – NEUTRAL; $1.01
2. Sheng Siong Group
The supermarket chain’s increased revenue of 5.0% to $629.6 million and refunded taxes of $2.2 million led to a 12.1% year-on-year growth of its 9M17 profit after tax and minority interests (PATMI) to $53 million.
Since there isn’t much of a surprise or upset in the earnings results, OCBC Research turns its attention to upcoming plans for new stores.
While the widely-known Woodlands store beside the train checkpoint is closing down permanently in November 2017, three new HDB stores in Woodlands, Punggol and Sengkang will start operating in 4Q17.
Furthermore, the newest store in Kunming, China, should open for business after regulatory approvals and should be the start of the company’s expansion plans in China.
OCBC Research: Sheng Siong Group Limited (SGX: OV8) – BUY; $1.04
3. Yoma Strategic Holdings
Thanks to the company’s automotive and consumer businesses, 2QFY18 revenue climbed 32.9% year-on-year to $33.1 million.
The company is also expanding its KFC store reach from 12 to 16 over the past six months or so and even looking at acquiring and developing new brands.
However, because of last year’s $14.7 million fair value gain on investment in 2QFY17, PATMI fell 56.8% year-on-year to $3.7 million. Nothing too huge considering all that.
Although many market watchers think the property market is stabilising, OCBC Research analysts still expect slow growth.
Fortunately, the company seems to be redesigning its property holdings to appeal to the mass market where demand should be robust in the near future.
OCBC Research: Yoma Strategic Holdings Limited (SGX: Z59) – HOLD; $0.58