07 Dec2023 Reports

Ada Tam Ying Ying

Dec 13, 20234 min read

Updated: Dec 20, 2023

SGX

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Phillip Daily Morning Note :

US Market (By Phillip Global Markets Night Desk)

OCBC

Market Pulse (07 December 2023)

Sembcorp Industries (SCI SP) - In the midst of transformation

DBS

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US crude oil declines to <US$70/bbl, lowest level since June, on supply-demand imbalance concerns
Meta and Microsoft to use AMD’s new AI chip; Nvidia to develop new chips that adhere to US export regulations
ByteDance initiates up to US$5bn share buybacks, valuing the company at US$268bn

Singapore Stocks

3 stocks to watch as Singapore’s AI-ambitions unfold over time

Nvidia’s potential AI-investment into Singapore is a nod to authorities’ plan to make Singapore a regional AI-hub, with positive spill-over effect for the technology ecosystem
The unfolding of Singapore’s AI-ambitions augurs well for the technology industry that 1) is at the cusp of recovery and 2) is a beneficiary of continual FDI flows and China+1 strategy
Which companies could benefit?
Click here to read our views

China Property

Resurgence of LGFVs in the land market

Developers’ appetite for landbanking is fading as year end approaches as they tend to conserve cash for 1H24
Local government financing vehicles (LGFVs) stepped up and filled the shortfall with contribution rising to 23% in 11M23
Land market likely to post another year of decline in 2024 with the physical market yet to show signs of stabilization
Which counter do we see as a key beneficiary?
Click here to read our views

ComfortDelGro Corp (CD SP)

Taking a cab to cost more, but consumers are willing to pay

ComfortDelgro Group’s regular fleet will see S$0.50 increase in flagdown fares and S$0.01 increase for distances and waiting times to S$0.26
Fare increase targeted at metered fare, with 10km non-peak taxi fare to go up by an estimated 6.8%
Expect other taxi operators to follow suit in the next couple of weeks to retain drivers
What is the impact on the company’s earnings?
Click here to read our views

NIO Inc (9866 HK / NIO US)

3Q23 non-GAAP results above expectation; expect further margin improvement in 4Q23

3Q23 revenue rose 46% yoy, thanks to the ramp up of new models with vehicle deliveries surging 75.4%, in line
Non-GAAP net loss narrowed c.27% qoq to Rmb3.9bn, better than market expectation of -Rmb4.3bn and is the lowest level of net loss so far in 2023, on improved vehicle margins (+4.8ppt qoq to 11%), lower R&D and SG&A expenses
Management guided 4Q23 volume shipment of 47-49k units (17%-22% y-o-y growth) and total revenue of RMB16.1-16.7bn (0.1% - 4.0% y-o-y), supported by continuous ramp up of new models
Will the streamlining of its business help with further margin improvement?
Click here to read our views

Far East Horizon Ltd (3360 HK)

Proposed distribution in specie of HCD shares

Far East Horizon (FEH) proposed to distribute 1 HCD share to qualifying shareholders for every 27 FEH shares they held
5% of HCD’s outstanding shares would be distributed, and that would represent 2.2% of special dividend yield for qualifying FEH shareholders
We think that is decent on top of the expected FY23F regular dividend yield of 8-9%
Will this meaningfully improve HCD’s trading liquidity and unlock the valuation of FEH?
Click here to read our views