SG Market (21 Sep 17)

MARKET OVERVIEW
- Banking and oil-linked stocks may recover some lost ground after the Fed kept alive a Dec rate hike and planned to gradually unwind its US$4.5t balance sheet from next month, while crude pushed above US$50 a barrel ahead of Fri's OPEC meeting.
- Technically, the STI is hovering just under its 3.220 support with next level at 3,190 and overhead resistance at 3,275.

CORPORATE RESULTS
*Sysma Holdings
- FY7/17 net profit surged 392% to $8.3m on a $4.2m write-back of loss provision and lower effective tax rate.
- However, revenue slid 23% to $97.2m mainly as property development projects (-56% to $32m) were substantially sold, but was cushioned by higher contribution from construction projects (+21% to $65.2m).
- Gross margin expanded 11.3ppt to 18.4%.
- Proposed first and final DPS of 0.5¢ (FY16: nil).
- NAV/share rose 19.5% to $0.1954.

POSITIVE NEWS
*Enviro-Hub
- 51% owned EH Property and Investments has been approached in connection with a potential sale of its entire interest in F2S1 Investment Pte Ltd.
- F2S1 owns PoMo, a shopping mall cum office building in Selegie Road, with 65 years lease left.
- No definitive agreement has been signed yet.

NEUTRAL NEWS
*OCBC/Great Eastern
- 87.8% owned Great Eastern is exploring a 30% stake sale of its Malaysian operations for as much as US$1b against a Jun 2018 deadline to comply with Bank Negara rule that capped foreign ownership of local insurance companies at 70%.
- Last year, GE Malaysia contributed ~6% to OCBC's pretax profit.
- Assuming GE fetches the touted sale price, OCBC could net a potential $943m gain on sale (22% of FY17E earnings est), and improve BVPS by $0.19 to $9.24.
- OCBC trades at 1.24x P/B.

*Genting Singapore
- Established a Tokyo branch office to develop and manage leisure and hospitality businesses, possibly in support of its bid for a gaming license in Japan.
- Trading at 10.1x forward EV/EBITDA, underpinned by improved operating conditions.
- MKE has a Buy with TP of $1.35.

*ABR Holdings
- Associate ABR CCH Land acquired a 1,180 sqm land plot at 155 Seksyen 88A, Kuala Lumpur for RM3.56m.
- The tenure of the 99-year leasehold land will expire on 3 Feb 2069.
- ABR CCH has appointed its 51% controlling shareholder, Cheng Chin Heng, to provide property consultancy services for a fee of RM0.13m.