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Writer's pictureAda Tam Ying Ying
Dec 4, 20237 min read

04 Dec2023 Reports


My Commentaries last Sat : 1 Dec 2023

https://www.zaobao.com.sg/finance/singapore/story20231201-1453631



SGX









Inside Commodities - Monday, December 4, 2023



 

Phillip Capital Market Reports:


Phillip Daily Morning Note :




US Market (By Phillip Global Markets Night Desk)


 

OCBC


Xiaomi Corp (1810 HK) - The Xiaomi EV is coming

Market Pulse (04 December 2023)

Singapore Stocks: Dividend Yield Monitor (4 December 2023)

Weekly S-REITS Tracker (04 December 2023)








 

DBS


Singapore Outlook 2024

Economic Themes

• 2024 will likely be a year of renewal for Singapore’s economy. We see seven key economic themes.

• Growth to improve in 2024, mainly supported by a gradual yet fragile external-led recovery.

• Foreign investments to be forthcoming, amid regional supply chain shifts.

• The labour market is likely to be less tight.

• Inflation is set to be bumpy, but ease in 2024.

• 4G leadership transition to occur in 2024, with expected policy continuity.

• Fiscal policy to balance between near and long-term priorities, with some room for expansionary stance.

• Monetary policy to normalise in July by reducing the steepness of the SGD NEER policy band’s slope.

Currency

• USD/SGD to hold in the same 1.30-1.38 range with a downside bias as the year progresses.

SGD Rates

• SORA to drop more meaningfully when the Fed cuts in 2H24.



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DBS VICKERS Daily Newsletter | 4 Dec 2023

  1. Powell now notes a “more balanced” risk between slowing the economy too much and not controlling inflation

  2. S&P 500 index closes at its highest level of 4,594.63 for 2023 on growing confidence in no more rate hikes

  3. Global manufacturing downturn slows in Nov; PMI rises to six-month high of 49.3, from 48.8 in Oct


Singapore Stocks

Lower oil price positive for transport companies, what about oil proxy Seatrium?

  1. Latest OPEC+ deal on production cuts failed to alleviate the downward pressure on oil

  2. Oil prices expected to end the year weaker, with downside to our analysts forecast of US$90/bbl and US$80-85/bbl for 4Q23 and 2024 respectively

  3. Lower oil prices generally positive for transport companies like ComfortDelGro and airlines but extent and timing may differ depending on hedging policies as well as cost indexation

  4. But what are our thoughts on oil proxy Seatrium?

  5. Click here to read our views


Singapore REITs

Time to FOLO (“Fear of Losing Out”) into S-REITs?

  1. The Fed’s “pause” in Nov drove a reallocation into S-REITs with a c.7% rise in Nov 2023, outperforming the benchmark

  2. Investors embraced the potential shift in interest rates trajectory, leading to a notable increase in share price across all sub-sectors

  3. A strong turnout at our Bangkok conference as management teams from 8 S-REITs participated in a series of meetings

  4. Is it an opportune time to add S-REITs?

  5. Click here to read our views


China/Hong Kong: 2024 Strategy Outlook

Adapting to China’s soft landing

  1. We expect HSI to rise 15% to 19,500 on modest earnings per share (EPS) growth and valuation expansion

  2. US rate cuts in 3Q24, China’s soft landing and stronger fiscal support underpin the upside

  3. Lessons from Japan’s slow growth era suggest investors can still find their way out in investing in industrial upgrade, shifting consumer behaviour

  4. What are our sector and stock preferences?

  5. Click here to read our views


IHH Healthcare Bhd (IHH SG / IHH MK)

A new dawn, a new day, a new life

  1. A stellar 3Q23 results with core net profit up 17% y-o-y, a record high quarter excluding COVID years

  2. New CEO unveils growth plans with target to deliver double digit growth in return on equity (ROE), add 3.8k beds (+33%) by 2028; likely to maintain presence in China

  3. Key operational highlights: i) All key markets delivered double digit EBITDA growth; ii) Singapore has resolved staffing issue; iii) EBITDA margin improved led by India

  4. Do valuations look attractive?

  5. Click here to read our views


Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more


 

UOB


UOBKH: Country Dailies: Monday, December 04, 2023


Click on the link for Singapore Daily.


Click on the link for Thailand Daily.


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UOBKH: Regional Morning Meeting Notes: Monday, December 04, 2023 [GC Alpha Picks, HK Property, ID Alpha Picks, NCKL IJ, MAL Alpha Picks, MAL Strategy, MAL Construction, SG Alpha Picks, OR TB]


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KGI


kgi: Technical Analysis: 4 December 2023

Technical Analysis: 4 December 2023

🇸🇬 SG

Singapore Exchange Ltd (SGX SP)

Frencken Group Ltd (FRKN SP)

🇭🇰 HK

China Coal Energy Co Ltd (1898 HK)

Yankuang Energy Group Co Ltd (1171 HK)


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Top Stories, 4 Dec 2023

1. Stock futures are flat after S&P 500 hits a fresh 2023 high: Live updates

2. Introducing ICE Micro MSCI Index Futures. Calculated by MSCI, a leading provider of index solutions serving the world’s institutional investors, the MSCI USA and MSCI Europe Indices are designed to capture the full opportunity set in their respective regions.

3. US dollar dips on dovish remarks by Fed chief

4. Cop28: China firm on new carbon targets for 2030 and 2035, calls for global effort to cut methane emissions

5. What More OPEC+ Cuts Mean for the Market


6. Breaking: Gold Price surges to the all-time high above $2,130 on weaker US, Fed rate cut bet

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kgi: Technical Analysis: 4 December 2023

Technical Analysis: 4 December 2023

🇸🇬 SG

Singapore Exchange Ltd (SGX SP)

Frencken Group Ltd (FRKN SP)

🇭🇰 HK

China Coal Energy Co Ltd (1898 HK)

Yankuang Energy Group Co Ltd (1171 HK)


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CIMB



SIN: Kimly Group - Navigating cost pressures (HOLD - Maintained)


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Trendspotter of the day (SIN/HKG/MAL/APAC): 4th December 2023

Please refer to below for the technical charts of the day.

SIN

  • Buying pressure returns at the bottom

  • The bottoming-out signal is in

HKG

  • Bullish continuation?

  • Bottoming out

MAL

  • Positive breakout

  • To retest the year high?

APAC+US

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ASEAN: CGS-CIMB ASEAN Daily - 04 December 2023

▍IDEA OF THE DAY (IOD)...

THB: Strategy Note - Navigating Thailand (1/12)

The Thai market has been one of the worst performing markets in Asia in 2023F, with a 16% decline YTD. However, on the back of the low base effect and with stronger domestic economic recovery expected, we believe the Stock Exchange of Thailand (SET) will perform better in 2024F. Our SET Index target for end-2024F is 1,700, based on 16.5x FY25F P/EnFollowing weak FY23F earnings (-8% yoy), we expect the market EPS to bounce back by 22% yoy in FY24F. Our themes for 1H24F are beneficiaries of government stimulus measures and interest rate-sensitive plays while our themes for 2H24F include export plays, earnings recovery plays and high beta stocks. We believe the Environmental, Social and Governance (ESG) theme will garner more momentum in 2024F as the Securities Exchange Commission (SEC) plans to require brokers to have ESG analyses in their stock coverage. As such, this is likely to differentiate companies between those with strong ESG performance and those that are weak, in our view. However, given the soft market sentiment, sluggish economy and lack of large stimulus measures in the near term, we expect the market to move sideways in 1H24F. However, with overseas rates likely to come down in mid-2024F and given stimulus measures, i.e. the digital wallet programme, we expect the market to fare better in 2H24F.


▌ TARGET PRICE CHANGES

MAL: YTL Corporation (ADD, tp:MYR2.13▲) - Firing on all cylinders (1/12)

MAL: YTL Power International (ADD, tp:MYR3.00▲) - Wessex Water: back in the driver’s seat (1/12)

PH: Converge ICT Solutions Inc (ADD, tp:PHP10.00▼) - Strong subscriber adds but at lower ARPUs (1/12)

SIN: Kimly Group (HOLD, tp:SGD0.36▼) - Navigating cost pressures (1/12)


▌ ECONOMIC & STRATEGY NOTES

IND: Economic Update - CPI up with supply-demand contrast (1/12)

MAL: Strategy Note - Monthly Wrap for Nov 2023 (2/12)


▌ SECTOR & COMPANY NOTES

IND: Property Development (OVERWEIGHT) - Underrated structural change (1/12)

MAL: Axiata Group (ADD, tp:MYR3.07) - Ncell sold – a small price but a big drag (1/12)

MAL: Dancomech Bhd (ADD, tp:MYR0.58) - Ready for a strong end to FY23F (1/12)

MAL: IHH Healthcare Bhd (ADD, tp:MYR7.70) - Scope for better profitability (1/12)

MAL: IHH Healthcare Bhd (ADD, tp:MYR7.70) - An all-around improvement in 3Q23 (1/12)

MAL: Ramssol Berhad (HOLD, tp:MYR0.402) - MMSDA collaboration positive for RiderGate (1/12)

MAL: Banks (OVERWEIGHT) - On track to achieve 4-5% loan growth (1/12)


▌ RECENT 'IDEAs OF THE DAY'...

MAL: Banks (OVERWEIGHT) - Don’t lose sleep over asset quality (16/11)

MAL: Utilities - Overall (OVERWEIGHT) - Malaysia, ASEAN’s renewable battery (6/11)

MAL: Strategy Note - Budget 2024: policy continuity (14/10)

MAL: Economic Focus - Budget 2024: Raise revenue, cut spending (14/10)

THB: Hana Microelectronics (ADD▲, tp:THB80.00▲) (ESG) - Multiple tailwinds to drive OP growth (10/10)


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APAC: ASIA Pacific Daily - 04 December 2023

▌ TARGET PRICE CHANGES...

HKG: China New Higher Education (ADD, tp:HKD3.50▼) - Solid tuition fee growth (1/12)

KR: SM Entertainment Co Ltd (ADD, tp:KRW150,000.00▼) (HC) - Negatives priced in (1/12)

MAL: YTL Corporation (ADD, tp:MYR2.13▲) - Firing on all cylinders (1/12)

MAL: YTL Power International (ADD, tp:MYR3.00▲) - Wessex Water: back in the driver’s seat (1/12)

PH: Converge ICT Solutions Inc (ADD, tp:PHP10.00▼) - Strong subscriber adds but at lower ARPUs (1/12)

SIN: Kimly Group (HOLD, tp:SGD0.36▼) - Navigating cost pressures (1/12)

▌ STRATEGY & ECONOMIC NOTES...

IND: Economic Update - CPI up with supply-demand contrast (1/12)

MAL: Strategy Note - Monthly Wrap for Nov 2023 (2/12)

▌ SECTOR & COMPANY NOTES...

IND: Property Development (OVERWEIGHT) - Underrated structural change (1/12)

MAL: Axiata Group (ADD, tp:MYR3.07) - Ncell sold – a small price but a big drag (1/12)

MAL: Dancomech Bhd (ADD, tp:MYR0.58) - Ready for a strong end to FY23F (1/12)

MAL: IHH Healthcare Bhd (ADD, tp:MYR7.70) - Scope for better profitability (1/12)

MAL: IHH Healthcare Bhd (ADD, tp:MYR7.70) - An all-around improvement in 3Q23 (1/12)

MAL: Ramssol Berhad (HOLD, tp:MYR0.402) - MMSDA collaboration positive for RiderGate (1/12)

MAL: Banks (OVERWEIGHT) - On track to achieve 4-5% loan growth (1/12)

▌ RECENT 'IDEAs OF THE DAY'...

THB: Strategy Note - Navigating Thailand (1/12)

KR: Hugel Inc (ADD, tp:KRW181,000.00▲) - Riding on China’s BTX market expansion (24/11)

MAL: Banks (OVERWEIGHT) - Don’t lose sleep over asset quality (16/11)

MAL: Utilities - Overall (OVERWEIGHT) - Malaysia, ASEAN’s renewable battery (6/11)

MAL: Strategy Note - Budget 2024: policy continuity (14/10)


 

Lim&Tan


MORNING UPDATE 04 DEC 2023: FINANCIAL MARKETS, VERTEX TECHNOLOGY, US ECONOMY, BCA RESEARCH / BLOOMBERG MACRO FINANCIAL NEWS









 

MayBank







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