Stock calls for 21 February 2020

Date	Analyst	Company	Last	Target	Call	Valuation
02/21/20	Tayrona	Asian Healthcare	0.192	0.305	Overweight	DDM, PER14.5x FY22
02/21/20	DBS Vickers	Ifast Corp	1.02	1.1	Hold	DDM
02/21/20	CIMB	Lippo Malls	0.235	0.24	Hold	DDM
02/21/20	DBS Vickers	Perennial Reit	0.52	0.83	Buy	RNAV (55% discount)
02/21/20	Lim & Tan	Propnex	0.53	0.68	Buy
02/21/20	CIMB	Sasseur	0.82	0.85	Add
02/21/20	UOB Kay Hian	Sembcorp Marine	1.2	1.21	Hold	Buy @ $1.05
02/21/20	DMG & Partners	Sembcorp Marine	1.2	1.45	Buy
02/21/20	DBS Vickers	Sembcorp Marine	1.2	1.35	Hold	PB1.3x FY20
02/21/20	CIMB	Sembcorp Marine	1.2	1.2	Hold
02/21/20	UOB Kay Hian	Starhub	1.5	1.45	Hold	Buy @ $1.25
02/21/20	DMG & Partners	Starhub	1.5	1.63	Neutral	DCF
02/21/20	DBS Vickers	Starhub	1.5	1.72	Buy
02/21/20	CIMB	Starhub	1.5	1.8	Add	DCF
02/21/20	DMG & Partners	UG Healthcare	0.235	0.33	Buy	PER9.2x FY21
02/21/20	UOB Kay Hian	Valuetronics	0.71	0.85	Buy
02/21/20	CIMB	Wilmar	4.04	4.58	Add	Sum of parts
02/21/20	DMG & Partners	Wilmar	4.04	4.77	Buy	Sum of parts
02/21/20	UOB Kay Hian	Wilmar	4.04	4.75	Buy

China can stabilize its stock markets but not the real economy. - Part 3

The economic fissures are starting to show up in China now.

Peking University's founder group is defaulting on its bonds but the government will save this company because it is a university-linked enterprise.

https://www.reuters.com/article/china-markets-default/update-1-chinas-peking-founder-seeks-bond-repayment-delay-to-feb-2020-sources-idUSL4N28U2DQ

Many Chinese firms cannot pay their employees now because of their shutdowns.  Even if the government helps them with cheap loans, it doesn't solve the fundamental problem (no customer) and their debts will only pile up.

https://www.thejakartapost.com/news/2020/02/19/chinese-companies-say-they-cant-afford-to-pay-workers-now.html

No monetary policy can help in this situation unless the virus outbreak is contained.  Monetary policies cannot override job insecurities.  When people are suffering from pay cuts and job losses, they will cut back on their spendings.  Nobody will buy a car when he doesn't have job security.  This is a fact of life.

https://sg.news.yahoo.com/chinas-passenger-car-sales-tumble-041809740.html

We had stated in our previous post that China's consumption would fall into the abyss and monetary policies would not resolve this.

http://sg-stock.blogspot.com/2020/02/china-can-stabilize-its-stock-markets.html

The US CDC has put Singapore on its community spread list.

https://www.taiwannews.com.tw/en/news/3878832

The US CDC has put SG on its community spread list.

The list consists of the following countries:
Japan
Singapore
South Korea
Taiwan
Thailand
Vietnam

HK is on Watch Level 1 notice while China is on Warning Level 3 travel notice.

What does the community spread list imply?
This list is implying that these countries must detox their surroundings to curb the community spread.

We had accurately projected Japan's virus outbreak.  Since Japan is the 3rd largest economy, its failure to contain the virus outbreak will affect the global economy.  Furthermore, Japan is the host country for Olympic 2020.  If this major event is cancelled, it will hurt Japanese firms heavily as they have spent billions to prepare and build the infrastructures for the upcoming Olympics.

http://sg-stock.blogspot.com/2020/02/red-alert-major-covid-19-virus-outbreak_19.html

Koufu - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/27/19	DBS Vickers	Koufu	0.63	0.8	Buy	PER17x FY19
03/08/19	UOB Kay Hian	Koufu	0.67	0.95	Buy	PER18.1x FY19
03/08/19	Lim & Tan	Koufu	0.67	0.85	Buy	PER18x FY19
04/08/19	UOB Kay Hian	Koufu	0.805	0.95	Buy
05/07/19	DBS Vickers	Koufu	0.77	0.8	Hold	PER17x FY19
05/09/19	UOB Kay Hian	Koufu	0.75	0.95	Buy
06/13/19	UOB Kay Hian	Koufu	0.675	0.95	Buy
06/28/19	DBS Vickers	Koufu	0.675	0.85	Buy	PER17x FY19
07/03/19	UOB Kay Hian	Koufu	0.72	0.95	Buy
08/08/19	UOB Kay Hian	Koufu	0.71	0.95	Buy
08/08/19	DBS Vickers	Koufu	0.71	0.88	Buy	PER17x FY20
10/01/19	UOB Kay Hian	Koufu	0.72	0.95	Buy
10/01/19	DBS Vickers	Koufu	0.72	0.88	Buy
11/05/19	DBS Vickers	Koufu	0.755	0.88	Buy	PER17x FY20
11/06/19	UOB Kay Hian	Koufu	0.77	0.95	Buy
12/11/19	SAC Capital	Koufu	0.765	0.87	Buy
01/06/20	DBS Vickers	Koufu	0.775	0.88	Buy
02/12/20	UOB Kay Hian	Koufu	0.725	0.83	Buy
02/13/20	DBS Vickers	Koufu	0.735	0.84	Buy	PER17x FY20

Kimly - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/07/19	DMG & Partners	Kimly	0.24	0.27	Neutral
02/14/19	DMG & Partners	Kimly	0.245	0.24	Neutral	DCF
04/05/19	DMG & Partners	Kimly	0.24	0.24	Neutral
05/09/19	DMG & Partners	Kimly	0.245	0.23	Neutral	DCF
06/06/19	DMG & Partners	Kimly	0.23	0.23	Neutral
08/13/19	DMG & Partners	Kimly	0.235	0.23	Neutral	DCF
10/15/19	DMG & Partners	Kimly	0.225	0.23	Neutral
11/28/19	DMG & Partners	Kimly	0.24	0.24	Neutral	DCF
12/11/19	DMG & Partners	Kimly	0.245	0.24	Neutral

Keppel Reit - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/22/19	DBS Vickers	Keppel Reit	1.18	1.31	Buy	DCF
01/22/19	CIMB	Keppel Reit	1.18	1.34	Add	DDM
01/22/19	DMG & Partners	Keppel Reit	1.18	1.06	Neutral	DDM
01/28/19	UOB Kay Hian	Keppel Reit	1.18	1.35	Buy
03/07/19	UOB Kay Hian	Keppel Reit	1.28	1.35	Buy	DDM
03/18/19	DMG & Partners	Keppel Reit	1.23	1.06	Neutral
04/01/19	UOB Kay Hian	Keppel Reit	1.29	1.35	Buy	DDM
04/18/19	DMG & Partners	Keppel Reit	1.24	1.12	Neutral	DDM
04/18/19	DBS Vickers	Keppel Reit	1.24	1.38	Buy	DCF
04/18/19	Lim & Tan	Keppel Reit	1.24	0	Hold
04/24/19	UOB Kay Hian	Keppel Reit	1.21	1.37	Buy	DDM
04/24/19	DBS Vickers	Keppel Reit	1.21	1.4	Buy	DCF
04/25/19	CIMB	Keppel Reit	1.23	1.34	Add	DDM
05/30/19	UOB Kay Hian	Keppel Reit	1.21	1.37	Buy
07/04/19	DMG & Partners	Keppel Reit	1.28	1.12	Neutral
07/16/19	CIMB	Keppel Reit	1.26	1.41	Add	DDM
07/16/19	DMG & Partners	Keppel Reit	1.26	1.2	Neutral	DDM
07/16/19	UOB Kay Hian	Keppel Reit	1.26	1.37	Buy
07/16/19	DBS Vickers	Keppel Reit	1.26	1.45	Buy	DCF
07/16/19	Lim & Tan	Keppel Reit	1.26	0	Hold
08/06/19	DBS Vickers	Keppel Reit	1.2	1.45	Buy
08/27/19	UOB Kay Hian	Keppel Reit	1.24	1.21	Hold	Buy @ $1.1
10/02/19	DBS Vickers	Keppel Reit	1.26	1.45	Buy	DCF
10/02/19	DMG & Partners	Keppel Reit	1.26	1.23	Neutral	DDM
10/17/19	CIMB	Keppel Reit	1.24	1.35	Add	DDM
10/17/19	UOB Kay Hian	Keppel Reit	1.24	1.2	Hold	DDM, Buy @ $1.1
10/17/19	Lim & Tan	Keppel Reit	1.24	0	Hold
12/04/19	DBS Vickers	Keppel Reit	1.23	1.45	Buy
12/10/19	DMG & Partners	Keppel Reit	1.25	1.23	Neutral
01/24/20	DBS Vickers	Keppel Reit	1.27	1.45	Buy	DCF
02/04/20	DBS Vickers	Keppel Reit	1.21	1.45	Buy