SGX
Phillip Capital Market Reports:
Phillip Daily Morning Note :
US Market (By Phillip Global Markets Night Desk)
OCBC
Market Pulse (06 December 2023)
Bank of China (Hong Kong) (2388 HK) - Capital return to drive performance
DBS
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US job openings fall to lowest level in 2.5 years of 8.7m in Oct, missing expectations
Moody’s downgrades China’s credit outlook to negative from stable on increasing debt levels
Chinese electric carmaker Nio climbs 4% after delivering narrower-than-expected 3Q23 losses
Regional Equity Strategy
2024 Outlook: Position for lower rates and soft landing
A better year ahead - ASEAN growth outpaces North Asia
Positive on Indonesia and Thailand, Neutral on Singapore and Hong Kong, Negative on Philippines
Themes - Fed pivot beneficiaries, robust growth outlook, resilient/defensive earnings, rising consumption
Which stocks do we prefer?
Singapore Hotels
We are the champions
Singapore’s position as a premier MICE and concert destination is second to none; demand for travel to Singapore to remain robust
Longer tourist stays and slow supply drive current RevPAR c.36% higher than 2019 levels; we see sweet spot in value-for-money hotels with ADR in the range of S$200-300+ per night
S-REIT hotels continue to see sustainable RevPAU growth of 5%-10% y-o-y, pegged to industry record rates, AEI completions to move the needle for DPU growth
What are our top picks in the sector?
BRC Asia (BRC SP)
Robust orderbook and site progress key drivers for FY24
FY23 earnings (-16% y-o-y) above our expectations on higher reversal of provisions for onerous contracts
Strong orderbook and accelerating site progress key drivers, notwithstanding some hurdles along the way
We adjust our FY24F revenue/earnings estimates by -3%/2%
Has the key overhang been removed?
Luk Fook Holdings (590 HK)
Striving to new heights
We hosted a post-results group call for Luk Fook following its strong 1H FY24 results of 34% y-o-y revenue growth, 43% earnings growth, and 31% interim DPS growth to HK$0.72
Latest same store sales growth (SSSG) for Oct-Nov reached >50% in HK/Macau and we expect the trend to continue for Dec. Mainland China saw a slow Oct, while Nov-Dec should ride on the low base to potentially reap a double-digit SSSG
Luk Fook runs on track to exceed pre-pandemic performance by FY24 (FY19: HK$15.9bn revenue) and strives for new heights
What catalyst do we see to fuel earnings for the company?
Singapore Equity Picks: Read more
Hong Kong Equity Picks: Read more
UOB
UOBKH: Regional Morning Meeting Notes: Wednesday, December 06, 2023 [GC Property, ID Consumer, MAL Consumer, MISC MK, XLH MK, CD SP, TH Alpha Picks]
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UOBKH: Country Dailies: Wednesday, December 06, 2023
Click on the link for Greater China Daily.
Click on the link for Indonesia Daily.
Click on the link for Malaysia Daily.
Click on the link for Singapore Daily.
Click on the link for Thailand Daily.
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REG: Strategy: Alpha Picks – December 2023
KGI
Top Stories, 6 Dec 2023
1. Asia markets set to rebound from Tuesday’s broad sell-off
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. Stock market news today: Tech gains, Dow lags on heels of slowing labor market demand
4. Moody’s cut China’s credit outlook to negative on rising debt risks
5. Oil falls to near 5-month low on OPEC+ cut doubts, demand concerns
6. Gold Price Forecast: XAU/USD drops to $2,020, eyed on US ADP data
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Technical Analysis: 6 December 2023
🇸🇬 SG
Jardine Cycle & Carriage Ltd (JCNC SP)
Best World International Ltd (BEST SP)
🇭🇰 HK
East Buy Holding Ltd (1797 HK)
CITIC Resources Holdings Ltd (1205 HK)
Read More: https://www.kgieworld.sg/research/dec06ta23
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TRADING IDEAS: 🇸🇬 SINGAPORE
6 December 2023
🏙 Tianjin Pharmaceutical Da Re Tang Group Corp Ltd (TIAN SP): Respiratory illness strikes Northern China
BUY Entry 2.04 – Target – 2.20 Stop Loss – 1.96
🏢 Sembcorp Industries Ltd (SCI SP): Relook at green investment
BUY Entry 5.20 – Target – 5.70 Stop Loss – 4.95
➡️ Read More: https://www.kgieworld.sg/research/dec06sg23
CIMB
Trendspotter of the day (SIN/HKG/MAL): 6th December 2023
Please refer to below for the technical charts of the day.
SIN
Potential bottom rebound
HKG
Bullish upside in an early stage
MAL
Short-term uptrend underway
Another leg up?
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ASEAN: CGS-CIMB ASEAN Daily - 06 December 2023
▌ RECOMMENDATION CHANGES & INITIATIONS
SIN: SEA Ltd (HOLD▼, tp:USD42.00▼) - TikTok Shop returning to Indonesia? (5/12)
▌ TARGET PRICE CHANGES
IND: Indocement (ADD, tp:IDR11,300.00▼) - Calculating impact of Semen Grobogan deal (5/12)
MAL: Optimax Holdings (ADD, tp:MYR0.84▼) - All eyes on execution of expansion growth (4/12)
▌ SECTOR & COMPANY NOTES
MAL: Malakoff Corporation (ADD, tp:MYR0.80) - Value has emerged (5/12)
MAL: Agribusiness (UNDERWEIGHT) - Lacking a clear price catalyst (6/12)
MAL: Rubber Gloves (UNDERWEIGHT) - Weaker pricing power hurting margins (5/12)
▌ RECENT 'IDEAs OF THE DAY'...
THB: Strategy Note - Navigating Thailand (1/12)
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)
========================================
APAC: ASIA Pacific Daily - 06 December 2023
▌ RECOMMENDATION CHANGES & INITIATIONS...
SIN: SEA Ltd (HOLD▼, tp:USD42.00▼) - TikTok Shop returning to Indonesia? (5/12)
▌ TARGET PRICE CHANGES...
IND: Indocement (ADD, tp:IDR11,300.00▼) - Calculating impact of Semen Grobogan deal (5/12)
KR: F&F (ADD, tp:KRW130,000.00▼) - Strong market headwinds (5/12)
MAL: Optimax Holdings (ADD, tp:MYR0.84▼) - All eyes on execution of expansion growth (4/12)
▌ SECTOR & COMPANY NOTES...
AU: Credit Clear Ltd (BUY, tp:AUD0.40) - Fundamentals continue to improve (5/12)
AU: Lithium Energy Limited (BUY, tp:AUD1.90) - Brine samples sent for DLE testing (5/12)
CHN: Consumer Staples - Overall (OVERWEIGHT) - Services to drive consumption recovery (5/12)
MAL: Malakoff Corporation (ADD, tp:MYR0.80) - Value has emerged (5/12)
MAL: Agribusiness (UNDERWEIGHT) - Lacking a clear price catalyst (6/12)
MAL: Rubber Gloves (UNDERWEIGHT) - Weaker pricing power hurting margins (5/12)
▌ 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)
===============================================
SIN: SEA Ltd - TikTok Shop returning to Indonesia? (HOLD - Downgrade)
Lim&Tan
MayBank
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