Brokers' take

Compiled by Annabeth Leow

JAPAN FOODS HOLDING | BUY

AUG 16 CLOSE: $0.495

TARGET PRICE: $0.64

KGI Securities, Aug 16

We expect an improvement in the next few quarters as the weakness in Q1 2019 was also partly due to lower performance in June, which coincided with the Fifa World Cup 2018.

Upside from Singapore operations is expected to be limited, and we reiterate our view that growth will have to come from overseas expansion. We are optimistic on its entry into Indonesia but will not factor it into our forecasts until we obtain more clarity on the performance of its first restaurant in the country.

We maintain our "buy" recommendation with a fair value of 64 cents based on discounted cash flow valuation.

Japan Foods' business model remains resilient and adaptable even in the face of higher costs.

We see several upside catalysts in FY2019, driven by organic growth amid an improving macro environment and through joint ventures with overseas partners.

GSS ENERGY | BUY

AUG 16 CLOSE: $0.13

TARGET PRICE: $0.22

RHB Securities Research, Aug 16

We expect the precision engineering business to be more robust in H2 2018, while oil exploration results on its second well are anticipated to be made known soon.

With rising oil prices, especially over the last few months, GSS is expected to benefit directly.

With a positive outlook ahead affirmed by its recently implemented dividend policy, we believe the company is currently at an inflection point, and think that the current weakness represents a good opportunity to accumulate the stock.

Maintain "buy", with a lower sum-of-parts-based target price of 22 cents, from 25 cents previously, due to the inclusion of the $2.95 million impairment in its Q2 2018 results.

YANLORD LAND GROUP | BUY

AUG 16 CLOSE: $1.51

FAIR VALUE: $2.13

OCBC Investment Research, Aug 16

Yanlord Land Group reported a strong set of Q2 2018 results, which beat our expectations.

Following this sturdy set of results, we raise our FY2018 and FY2019 core profit after tax and minority interests forecasts by 6.9 per cent and 1.3 per cent, even as we increase our finance costs assumption.

We also incorporate an updated currency assumption of $1 to five yuan. Finally, we lower our target price-to-earnings peg from six times to 5.5 times.

Maintain "buy". Following these adjustments, our fair value dips from $2.24 to $2.13.

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