Golden Agri BUY Target Price $0.83 by Phillips Securities

Phillip Securities has upgraded its rating for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to buy from hold and raised its target price to $0.83 from $0.74.

Phillip upgraded Golden Agri after the firm reported a better-than-expected 134% increase in its first quarter revenue to US$1.4 billion ($1.75 billion), due to better performance from its China operations and higher average selling prices.

The brokerage also noted that Golden Agri is expanding its downstream business, which will benefit from the growing affluence of emerging markets and rising popularity of edible oils.

We see the importance of Golden Agri’s need to improve their downstream business because diversification of their source of revenue will help them reduce their business risk.

Genting Singapore BUY Target Price $2.74 by Phillips Securities

Phillip Securities Research in a 14th Jan 2011 research report says: "Genting Singapore is an investment holding company for Resorts World Singapore (RWS). Genting principal activities include casino operations, operation and management of integrated resort, international sales and marketing services as well as IT application related services.

"With the recent divestment of Genting UK, Genting Singapore derives 98% of its revenue from RWS. We believe revenue growth to be strong in 2011 and this is likely to translate to higher earnings. Given our estimated EBITDA of $2.3 billion in 2011, the enterprise value is estimated to be $34.9 billion base on 15x EV/EBITDA.

"Our market value of equity is worth $33.5 billion thus giving rise to fair value estimate of $2.74 base on 12.2 billion shares. Fair value estimate of $2.74. BUY (initiating coverage of Genting Singapore stock). "

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Sembcorp Marine BUY Target Price $6.60 by Phillips Securities

Phillip Securities Research in a May 10 research report says: "Sembcorp Marine reported 1Q11 turnover at $829 million (-39% y-o-y, -16% q-o-q) and 1Q11 net profit at $152 million (+ 0.1 y-o-y, -41% q-o-q).

"The results were well in line with expectations with turnover and net profit constituting 23% and 19% of FY2011 forecast respectively. Although revenue fell 39% y-o-y, which was well flagged earlier due to the rig order drought in 2009, gross profits remain relatively unchanged due to a sharper drop in cost of sales.

"Our SOTP based target price of $6.60 implies a valuation of 18x FY11E earnings, which we feel is undemanding given that the company has impressive margin growth and we have not factor in potential contract wins from Petrobras. With an upside of 21.2% to its last trading price, we maintain our Buy call on SMM at an unchanged target price of $6.60. MAINTAIN BUY."