Courts

Courts: DBSV reckons valuations for Courts is still appealing, after share price dropped from a high of $1.145 in Apr/May to $0.77 currently, which translates to 10x FY14F PE, below the peer average of 14x. The trend of increasing population and housing in Singapore, plus the growing middle class in Malaysia and Indonesia continue to benefit Courts. DBSV expects 2Q14 results to be soft due to lower fuel subsidies in Malaysia and slower furniture and household equipment sales in Singapore. That said, as Malaysia adapts to fuel subsidies and higher housing completion in Singapore going forward, demand should pick up. DBSV maintains Buy with a slightly TP of $1.00 (from $1.05).