Ada Tam Ying Ying

Nov 27, 20238 min read

15 Nov2023 Reports

Updated: Nov 28, 2023

SGX

Singapore Depository Receipts Newsletter Nov 2023

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-257131?e=ffecca3682

US Market (By Phillip Global Markets Night Desk)

15 November 2023

Good News on Inflation

Last month, the top-level inflation rate in the U.S. fell to the lowest level on a

year-over-year since September 2021, as most price increases appear to be

easing. The rate of core inflation also ticked lower. The CPI numbers were

ahead of consensus expectations and Argus forecasts -- and financial markets

responded with a rally. The Bureau of Labor Statistics reported a 3.2%

increase in overall inflation year-over-year through October, compared to a

3.7% rate through September and a 9.1% rate in June 2022. The core rate,

excluding the impact of food and energy prices, declined as well -- to 4.0% in

October, versus 4.1% in the prior month. Month-over-month, the all-items

CPI was flat, and the Core CPI increased only 30 basis points. Segments of

the economy with stable/easing prices year-over-year included Energy, Used

Cars & Trucks, and Medical Care Services. New Vehicles and Apparel prices

increased. Inflation rates continue to be propped up by Transportation

Services and Shelter. We continue to think that the June 2022 CPI rate was

the peak reading for the index this cycle, as the housing market cools,

supplies of new vehicles are replenished, and the price of oil stays below $90

per barrel. The Federal Reserve has lifted the feds fund rate from 0.0% to

above 5.25% over the past 18 months, and the rate hikes appear to be

reducing inflationary pressures. The next question is whether the rapid rate of

increases will tip the economy into a recession as inflation continues to head

toward 2.0%. We look for the U.S. central bank to be lowering rates in 2H24,

as their concern shifts more toward economic growth.

Market Wrap

Stock futures pared gains and bond yields climbed as traders weighed the latest readings on retail sales and inflation for clues on the Federal Reserve’s next steps.

S&P 500 contracts came off session highs, but still signaled the US equity benchmark will extend its November rally. Treasury two-year yields, which are more sensitive to imminent policy moves, advanced after plunging 20 basis points in the previous session. The dollar fluctuated.

Today's Big News

Biden, Xi Eye Economic, Military Thaw in High-Stakes Meeting
Israel Latest: Troops Press On Against Hamas After Hospital Raid
Germany’s Top Court Strikes Down €60 Billion Climate Funding
Barclays Gets More Than $13 Billion Demand for Dollar AT1
Target Profit Blows Past Forecasts Amid Leaner Inventories
Taiwan Parties Agree to Joint Bid, Reshaping Election

OCBC

DBS

Your daily newsletter

US inflation slows to +3.2% y-o-y in Oct (vs +3.7% y-o-y in Sep); 10-year Treasury yield falls below 4.5%
US House passes temporary spending bill to avert government shutdown
Apple supplier Foxconn reports 11% net profit growth y-o-y in 3Q23, beating expectations

Latest changes: DBS Equity Picks

DBS Equity Picks have consistently outperformed market benchmarks since inception.

NEW ADDITION(S)

Add CapitaLand Ascendas REIT to Dividend category (Singapore)

Singapore Market View Update

Watch REITs and technology as yields fall and STI finds support

Odds of a final FED rate hike slumped to nil following slightly weaker-than-expected inflation data, while the US 10Y yield fell to 4.44%
Our earlier call for a higher-low pullback for the STI to 3106 support is panning out well with the benchmark dropping 76pts to end at 3,104 yesterday
REITs should resume their recovery as investors tune in to the strongest odds thus far for no further hikes and the possibility of 100bps cut next year; rate sensitive tech sector could also benefit from rate cut expectations
What are the stocks to watch in these sectors?
Click here to read our views

China Hardware Sector

Don’t overlook iPhone suppliers

Recent outperformance of Android suppliers should have largely priced in Huawei’s boost; expect iPhone suppliers to catch up, driven by solid shipment growth
iPhone 15 shipment likely exceeds previous market expectations by 10%, based on promising presales data
Huawei's gain should be at the expense of other Android makers, except for Xiaomi which flagship sales have been robust
Do we see higher earnings for Xiaomi and Luxshare ahead?
Click here to read our views

China Real Estate Sector

Can the reported Rmb11trn fund injection be a gamechanger?

Bloomberg reported that PBOC plans to inject at least Rmb1trn to urban village renovation and affordable housing programs
If confirmed to be true, we believe it is a long-awaited move by the capital market and could spur some short-term optimism
However, the size will likely be insufficient to meaningfully revitalise the sector
Which counters will be the key beneficiaries?
Click here to read our views

SATS Ltd (SATS SP)

Onto the next stage of growth

2QFY24 results in line, with significant improvement in operating margin
Earnings momentum to accelerate from hereon on continued volume and margin recovery
Trim FY24/25F adjusted EBITDA to factor in accounting impact from ongoing purchase price allocation (PPA) adjustment
Do we continue to be optimistic on the stock?
Click here to read our views

Samsonite International (1910 HK)

Ample room for further excellence

Outstanding 3Q23 with sales expansion across all core brands and regions
Gross and adjusted EBITDA margins at new highs; adjusted net income doubled, in line
4Q23 on track, a pivotal period for overall performance as 4Q normally accounts for 40-58% of full year earnings (ref. 2016-18)
Do we see positive prospects in the near- and medium-term?
Click here to read our views

DBS Group Research | Equity Pick

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more

UOB

UOBKH: Country Dailies: Wednesday, November 15, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=76127&h=feeffd0b0ac70198e3b7ee121cda0597

Click on the link for Indonesia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76129&h=e993e3760e513a36c2582385c8afe392

Click on the link for Malaysia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76148&h=f3165be83d2dd835403b494eb7185ce2

Click on the link for Singapore Daily.

https://research.uobkayhian.com/content_download.jsp?id=76125&h=d86fbddd26739a7bdc746a8e5b82721

Click on the link for Thailand Daily.

https://research.uobkayhian.com/content_download.jsp?id=76155&h=e4ab2a522e901766a70ab99750fba3df

UOBKH: Retail Market Monitor: Wednesday, November 15, 2023

https://research.uobkayhian.com/content_download.jsp?id=76124&h=d59d9cee30473fc379c7034061b9d950

UOBKH: Regional Morning Meeting Notes: Wednesday, November 15, 2023 [GC Property, ID Healthcare, DLG MK, NATGATE MK, BAL SP, CD SP, SE US, UMSH SP, AMATA TB, BTS TB, SPALI TB, ERW TB]

https://research.uobkayhian.com/content_download.jsp?id=76123&h=10a6160fbb515166537e698b01fa226b

KGI

Technical Analysis: 15 November 2023

🇸🇬 SG

Delfi Ltd. (DELFI SP)

SATS Ltd. (SATS SP)

🇭🇰 HK

China Resources Power Holdings Co Ltd (836 HK)

Huaneng Power International Inc (902 HK)

TRADING IDEAS: 🇸🇬 SINGAPORE

15 November 2023

🏙 Sembcorp Industries Ltd. (SCI SP): The green transition

BUY Entry 5.08 – Target – 5.48 Stop Loss – 4.88

🏢 UMS Holdings (UMSH SP): Expect better 3Q23 earnings

BUY Entry 1.26 – Target – 1.36 Stop Loss –1.21

15 Nov2023 Reports

SGX

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