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Thursday, April 13, 2017 - 05:50

PACC Oshore Services Holdings | Hold

Target price: S$0.335
April 12 close: S$0.35
OCBC Investment Research, April 12

It has been a tough time for oshore and marine companies since the oil price crash in Q3 2014. PACC Oshore Services Holdings (POSH)
is still in relatively better position, with positive operating cashows of US$38.2 million in FY16 and US$69.6 million in FY15.

Net gearing was 1.0x in FY16, but the group has been enjoying good relations with its banks. As at Dec 31, 2016, it had undrawn bank
lines of about US$282.9 million.

Meanwhile, the group has been able to secure contracts for its vessels from the Middle East, which is still holding up for now.

Oversea-Chinese Banking Corporation | Buy

Target price: S$10.75
April 12 close: S$9.70
UOB Kay Hian Research, April 12

SEE ALSO: Seoul: Won checked by growing North Korea tension, stocks rebound

We expect OCBC to achieve a respectable net prot of S$805 million for Q1 2017, down 6 per cent year on year but up 2 per cent quarter
on quarter.

We see growth from fee income, driven by wealth management, and higher but normalised contribution from Great Eastern.
Unfortunately, asset quality for the oil & gas sector remains stressed and we expect credit costs to stay elevated.

We expect fees & commissions to have expanded 16.2 per cent year on year to S$434 million, driven by wealth management. OCBC
completed the acquisition of Barclays' wealth management business in Nov 16 and beneted from growth in bancassurance.

We also expect healthy contributions from loan-related fees. We expect net trading income of S$120 million.

Teckwah Industrial Corp Ltd | Non-rated

April 12 close: S$0.54
CIMB Research, April 11

Teckwah has transformed from a paper box maker into a supply chain service provider. Its non-print (logistics) segment formed 65 per

cent of FY16 group Ebit (earnings before interest & tax).

Group core Ebit hit new highs at S$17.2 million in FY15 and S$19.1 million in FY16 as compared to S$12.3 million to S$14.9 million in FY11-
14.
 Management attributed the improving protability to the several initiatives that Teckwah undertook during FY11-14, including investing in
its new headquarters and print media hub at the Pixel Red at Paya Lebar iPark, relocating its high-volume print and package activities to
its new Iskandar factory, and upgrading its China and Indonesia facilities.

Compiled by Stephanie Luo

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on
the information published and should seek independent nancial advice prior to making any investment decision. The publisher accepts no
liability for any loss whatsoever arising from any use of the information published herein.

Brokers who wish to send in their reports can e-mail us at btnews@sph.com.sg

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