05 Dec2023 Reports

Updated: Dec 20, 2023

SGX

REIT Watch - S-Reits rebound 7.4 per cent in November, best month in 3 years

Phillip Capital Market Reports:

Stock Research

Phillip Daily Morning Note :

US Market (By Phillip Global Markets Night Desk)

OCBC

Market Pulse (05 December 2023)

DBS

Market News

US factory orders fell 3.6% on weakening demand, marking a 3½ year low in October
Singapore targets to triple the AI workforce to 15,000 over the next three to five years
Spotify jumps more than 7% after announcing plans to cut 17% of workforce

Singapore Domestic Tourism Stocks

4 reasons why visitor arrivals in 1Q24 should be stronger than 4Q23

October 20203 revenue per available room (REVPAR) and visitor arrival rates foretell a slow recovery in 4Q23
We think the December seasonal uptick in visitor arrivals should be weaker this year as the upcoming Chinese winter school holiday falls in Jan-Feb24 instead of Dec-Jan in previous years
Yet, we see a stronger 1Q24 stronger on a strong line-up of MICE events and returning Chinese tourists
What are the stocks to watch?

Singapore Banks

Banking on a soft landing

Net Interest Margin (NIM) pressures may persist as funding costs remain high
Loan growth likely to face challenges if Fed cuts rates in 2H24F on the premise of a slowing economy
Credit costs normalisation expected in FY24F and a soft landing is possible due to substantial implementation of management overlays
Which bank do we prefer on better asset quality and higher provision coverage ratio?
Click here to read our views

China Property Sector

Xiamen site visit takeaways: Battling weak sentiment despite policy easing

Homebuyer sentiment only improved marginally despite recent policy easing; income uncertainty was cited as the most important factor affecting home purchase decisions
Mounting price pressure in both core and non-core districts amid weak homebuyer sentiment and rising inventory levels
Developers are increasingly depending on property agents to acquire customers and drive sales
Which counter will benefit from the likely uptick in home transactions?
Click here to read our views

HK Residential Sector

Good response to YOHO West launch

YOHO West received good initial response, as expected
Better transaction volume but home prices remained on a downtrend
Property developers now trading at 63% discount to our NAV estimate; low sector valuation should limit any significant downside risk
Which counter do we see with attractive valuation and strong execution?
Click here to read our views

WuXi Biologics (2269 HK)

Share price correction due to downward revision of earnings guidance

Management revised down 23F/24F adjusted net profit growth guidance from 27%/30% to high single digit decline/double digit growth
The revision, stemming from slower-than-expected biotech funding recovery, was a negative surprise and caused a 24% plunge in share price yesterday; short term share price volatility is expected
The share price has been negatively correlated with interest rate
What catalyst do we see for the counter?
Click here to read our views