RAFFLES MEDICAL GROUP
Broker: Maybank Kim Eng
Call: Buy
Target price: $1.70
Raffles Medical Group is positive in its outlook for China. The management has highlighted the exciting potential of its China operations, given the huge population, quality concerns and high spending power.
The Shanghai hospital is progressing according to plan and it is expected to open in early 2019.
Locally, the Raffles Hospital extension is on track to open in late 2017. The current capacity utilisation remains efficient due to its tie-up with the Government under emergency collaboration care. The new Holland Village medical centre has broken even in just seven months and 95 per cent of the space has been committed.
For Shaw Centre, it is still loss-making, but management aims to break even this year.
YANGZIJIANG SHIPBUILDING
Broker: OCBC Investment Research
Call: Hold
Target price: $0.96
Yangzijiang Shipbuilding (YZJ) recently announced that one of its subsidiaries had subscribed for 30 per cent equity interest in Jiangsu Nantong Yanhai Emerging Industrial Investment Fund with an authorised share capital of up to 300 million yuan (S$60.8 million), thereby making Nantong Yanhai an associate.
The operating term of the fund is seven years, and its core business is related to industrial investment, venture investment and equity investment in small and medium-sized privately owned enterprises in emerging industries such as energy conservation and environmental protection, and innovative consumption business.
In January, a unit of YZJ also subscribed for a 32.8 per cent equity interest in Wuxi Jinrui Zhonghe Investment Enterprise for 96.8 million yuan. Based on these recent moves, YZJ still seems intent on parking money in investment funds, something it ventured into years ago.
STARHUB
Broker: Maybank Kim Eng
Call: Sell
Target price: $2.49
StarHub management said it has no intention to acquire or merge with M1, but shareholder ST Telemedia will decide.
The management also cautioned that the regulator will not permit spectrum hoarding even if it allows another telco to buy M1.
The management noted that its enterprise fixed and mobile sectors give the best margins, contributing 68 per cent of revenue.
