Ada Tam Ying Ying

Oct 19, 20236 min read

19 Oct2023 Reports

Updated: Oct 20, 2023

SGX

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-256747?e=ffecca3682

US Market (By Phillip Global Markets Night Desk)

19 October 2023

Investing in the Cloud

The emergence and adoption of cloud computing reflects a confluence of factors. A key driver of cloud adoptions is the ability to match and scale IT resources to an enterprise's needs in real time. All of these factors were accelerated by the pandemic. In the internet era, in which digital commerce complements or has supplanted physical commerce, the IT needs of any enterprise have grown. The traditional on-premises approach is inherently inefficient, given that IT needs may fluctuate. In cloud services models, enterprises only consume as much computing, storage, and networking bandwidth as they need at any time. For a major event, this allows massive scaling of IT resources beyond the restraints of on-premises implementation. For periods in which operations are steady, the cloud services model allows for a needs-only application. The leading providers of cloud services tend to be large technology and communication services companies that provide many goods and services distinct from or adjacent to their cloud businesses. These companies include Amazon, Microsoft, Alphabet and others in the United States, along with Alibaba, Baidu, Tencent and others in China. Collectively, participants in the cloud eco-system grew revenue at a 19% compound annual growth rate from 2016 to 2022. While cloud services grew at a 23% growth rate from 2020 to 2021, the average growth rate slowed to 15.3% for 2022. This slowdown in revenue growth reflected impediments to normal business activity from the supply-chain crisis, inflation, and rising interest rates. The global economy experienced cyclical softening during 2022 into 2023 due to inflation and rising interest rates, and this broadly impacted the Technology sector. Demand for cloud services has held up relatively well, given that cloud transition is a long-tailed process and that cloud transformation has become an imperative.

Market Wrap

reasury yields remained higher after jobless claims data bolstered speculation the Federal Reserve will keep its policy tighter for longer, even if it decides to hold interest rates next month.

Ten-year US government bond rates advanced four basis points to 4.96%. The dollar was little changed. S&P 500 contracts fluctuated. Tesla Inc. slumped as the electric-vehicle giant missed both earnings and sales estimates for the quarter. Netflix Inc. climbed after posting its best quarter for subscriber growth in years. American Airlines Group Inc. topped Wall Street’s expectations for profit even as its forecast for the rest of the year fell short.

Today's Big News

- US Jobless Claims Fall to 198,000, Lowest Level Since January

- Israel Latest: UK’s Sunak Vows to Support Israel for Victory

- Early Champion of AT1s Warns They Can Break Banks in Next Crisis

- Blackstone Profit Tumbles 12% on Interest Rates, Deal Slump (1)

- World’s Biggest Battery Maker CATL Earnings Miss as EV Sales Dip

- Trump Leads Biden in Key States as Voters Fret About the Economy

OCBC

DBS

The Chinese economy grew 4.9% y-o-y in 3Q, faster than expectations, led by improvements in retail sales recovery
Netflix’s 3Q EPS of US$3.73 beats estimates, posted best subscriber growth in years
Tesla’s 3Q revenue and profit missed estimates but reiterated its production goal of 1.8m vehicles this year

Stocks with Chinese Exposures

4 stocks to watch on early signs of China economic stabilization

We may be seeing early signs of China economic stabilization on (1) better-than-expected 3Q GDP pint, (2) broad-based acceleration of retail sales, and (3) moderation in external headwinds
Stocks with Chinese exposures, which have seen meaningful declines to share prices, may deserve a re-look if recovery firms from hereon
What are the stocks to watch?
Click here to read our views

HK Property Sector (Office)

Investment strategies under prolonged headwinds

Record high office vacancy, diverging performance across submarkets
Office rental correction to continue and negative reversionary growth to persist
”Flight to quality” trend continues and ESG credential becomes more important in securing new tenants
Which companies stand out in the HK office sector?
Click here to read our views

China Real Estate

En-route for a mild recovery for 4Q23

National sales in Sep showed more signs of stabilisation on a pick-up in developers’ project launches
Further recovery of macroeconomy and policy easing should support a mild physical market recovery in 4Q23
Which companies will be key beneficiaries of China property recovery?
Click here to read our views

Swire Properties Ltd (1972 HK)

Portfolio expansion to drive long-term growth

Commenced the redevelopment of Zung Fu Industrial Building and Wah Ha Factory Building in Quarry Bay
Acquiring stakes in Yangjing and New Bund plots in Shanghai
What’s our view on gearing post the Shanghai land acquisition?
Click here to read our views

DBS Group Research | Equity Picks

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more

UOB

UOBKH: Regional Morning Meeting Notes: Thursday, October 19, 2023 (PM EDITION) - Additional: SG Gaming [GC Economic Activity, 600872 CH, 2020 HK, 709 HK, ID Plantation, MAXIS MK, SG Gaming, WIL SP, EGCO TB]

Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=75638&h=71741bca0c944a872872c0d4efd2a82d

UOBKH: Country Dailies: Thursday, October 19, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=75656&h=37fca4601222dbb1f9fe53c8716e8a00 Click on the link for Indonesia Daily. https://research.uobkayhian.com/content_download.jsp?id=75658&h=461022d5eb11b2a5f3e84d12a16a255a Click on the link for Malaysia Daily. https://research.uobkayhian.com/content_download.jsp?id=75673&h=df5c4ce323019d5d44d6eaeb6977461b Click on the link for Singapore Daily. https://research.uobkayhian.com/content_download.jsp?id=75640&h=d36172ee2c83e2eb52a95f6738bc55a4 Click on the link for Thailand Daily. https://research.uobkayhian.com/content_download.jsp?id=75674&h=898879c0548418d9d556817a9bdb2b07

UOBKH: Retail Market Monitor: Thursday, October 19, 2023

Click on the link for details.

https://research.uobkayhian.com/content_download.jsp?id=75639&h=56e2d094c922f8bcaed60eeef83e729

KGI

Technical Analysis: 19 October 2023

🇸🇬 SG

Rex International Holdings Ltd. (REXI SP)

Silverlake Axis Ltd (SILV SP)

🇭🇰 HK

China Citic Bank Corp Ltd (998HK)

CLP Holdings Ltd (2 HK)

19 Oct2023 Reports

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