Ada Tam Ying Ying

Nov 26, 20238 min read

09 Nov2023 Reports

Updated: Nov 28, 2023

SGX

kopi-C with CEO of Scorpio Electric: "We’re building a premium electric motorcycle that excites users"

https://x.edm.sgx.com/ats/msg.aspx?sg1=7b4ea6399e87ee3c9e28eedeb5eada6d%c2%a0

Phillip OCBC DBS UOB KGI CIMB Lim&Tan MayBank

https://www.zawya.com/en/mena

Phillip Capital Market Reports:

Stock Research

Phillip Daily Morning Note :

https://mailchi.mp/phillip/phillip-morning-note-257059?e=ffecca3682

US Market (By Phillip Global Markets Night Desk)

9 November 2023

Values in Financials and Information Technology

Each month we take a close look at an aspect of sector investing. This month,

we are examining growth and valuation. Investors hunting for stocks that

reasonably balance long-term growth prospects and current value

characteristics might want to look at companies in the Financial Services,

Technology, and Industrial sectors. These are among the industry groups that

are selling for (price/earnings)/(growth+yield) ratios at or below the S&P

500's ratio of 2.0. To generate the PEGY ratios, we use the P/E ratio for each

sector based on forward earnings for the numerator. For the denominator, we

average the growth rates for the past five years along with two years of

forward estimates, in order to achieve a smoother and less-volatile trend of

earnings growth. We then add the current yield, to approximate total return.

As an example, the current S&P 500 P/E ratio is 17, the current yield is 1.6%,

and the forecast five-year growth rate is 7.1%. The formula is 17/(1.6+7.1)

=2.0. Premium-valued sectors with low growth rates include the Consumer

Staples and Utilities industries. Based on our analysis of growth rates and

valuations, along with other factors, we have established our current

over-weight sectors as Technology, Financial, Consumer Discretionary and

Communication Services. Our under-weight sectors are Energy and Consumer

Staples. Our Market-Weight sectors are Healthcare, Industrial, Utilities, Real

Estate, and Basic Materials.

Market Wrap

Stock futures rose and bonds fell after jobless claims figures added to evidence that the labor market is cooling, with traders also awaiting remarks from Jerome Powell and a raft of Federal Reserve speakers.

S&P 500 contracts signaled the benchmark index will head toward its longest winning streak since 2004. Treasury 10-year yields climbed five basis points to 4.54%. Thursday’s $24 billion sale of 30-year bonds will be another test of the market’s ability to accept higher issuance. The dollar was little changed. Bitcoin hit an 18-month high, topping $36,000.

Today's Big News

Israel Latest: Army Says Hamas Unit Chief Killed in Airstrike
SoftBank Vision Fund Loses $1.7 Billion More as WeWork Collapses
Avoiding Tesla Is Winning Trade for Fund Managers: Taking Stock
'No One Is Safe' After Hottest 12 Months Ever Recorded
Thailand’s ‘Salesman’ PM Travels the World to Woo Investment
Bitcoin Rallies Past Terra Crash Level in Win for Bruised Bulls

OCBC

DBS

Your daily newsletter

US 30-year mortgage rate falls to 7.61% from 7.86% last week, the largest weekly drop since July 2022
Semiconductor technology company Arm reports revenue beat but gives weaker-than-expected guidance
Oil prices slide nearly 3% to 3-month lows with Brent falling to US$79.54/barrel on fears of softening demand

Regional Retail Property Sector

Where will the Chinese go for holidays?

Subdued spending patterns from Chinese consumer means a preference for offerings, experiences and holidays that offer “best value”
Growth potential is greater for countries like Thailand and HK which have gone all out to attract the tourism dollar
Singapore suburban landlords still offer a stronger growth trajectory while hospitality S-REITs are preferred to gain exposure to recovering tourism numbers
What are our top picks in the sector?
Click here to read our views

China Auto Sector

Strong Oct PV retail sales growth within expectation

Passenger vehicle (PV) retail sales rose c.10% yoy in October, an extension of September’s growth momentum
New energy vehicle (NEV) market posted c.38% expansion, largely driven by plug-in hybrid electric vehicle (PHEV) segment on new model launches
Anticipate market competition to intensify in 4Q23
What counter is best positioned to weather the current challenging market conditions?
Click here to read our views

Singapore REITs

3 REITs to consider on retreating 10YUST and returning risk appetite

Overnight pullback in 10-year US Treasury yields to the sub-4.5% levels, coupled with the building expectation for Fed to end its hiking cycle, is an opportunity to re-look at SREITs
Risk appetite, as indicated by MTD price action, that is returning to SREITs should remain conducive if yields continue to stabilize from hereon
Which are the REITs that have attractive valuations and continue to offer earnings resilience?
Click here to read our views

StarHub Ltd (STH SP)

Stock price should re-test YTD high on earnings uplift

Our analyst upgraded the stock to BUY with revised TP of S$1.25 based on over 6% yield and FY23-25F earnings CAGR of 8%
3Q23 net profit of S$37.3m (+37% y-o-y) 10% ahead of consensus due to lower-than-expected transformation and depreciation costs
Our revised FY23F/24F earnings are 13%/6% ahead of consensus each; we expect consensus to be raised soon
What is our technical view on the counter?
Click here to read our views

Seatrium Limited (STM SP)

Charting a Growth course

3Q revenue surged to >$2bn, beating expectations; a positive indicator for margin recovery
Offshore renewable projects on orderbook intact while US offshore renewables hit roadblocks; European seems to be progressing well
Strategic review to be concluded year-end but released in 1H24; contract wins remain key catalysts
Do we see an attractive risk-reward outlook?
Click here to read our views

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more

UOB

UOBKH: Regional Morning Meeting Notes: Thursday, November 09, 2023 [2423 HK, 823 HK, ID Banking, MMHE MK, HLBK MK, NANO SP, SIA SP, STH SP, STM SP, BJC TB, PTTGC TB, TOP TB, KCE TB]

https://research.uobkayhian.com/content_download.jsp?id=76011&h=4cf2d8403ea3f1f57a1f7894c32a74ad

UOBKH: Country Dailies: Thursday, November 09, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=76019&h=e074c108e59683680eb4fd75b0fc989d

Click on the link for Indonesia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76021&h=9bf16288d39fe158b77c0dafc21b96b3

Click on the link for Malaysia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76039&h=ceabc05588f646c05236e4f6d2d7a387

Click on the link for Singapore Daily.

https://research.uobkayhian.com/content_download.jsp?id=76013&h=ec3cd5de78196a9a6c8bd1c020f7f43e

Click on the link for Thailand Daily.

https://research.uobkayhian.com/content_download.jsp?id=76046&h=b894730ed1a89da4333b53d95067b2cc