Ada Tam Ying Ying

Nov 27, 20238 min read

24 Nov2023 Reports

Updated: Nov 27, 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 :

US Market (By Phillip Global Markets Night Desk)

24 November 2023

Bull Market Building Strength?

The S&P 500 has risen about 27% from its bear-market low of 3577 on

October 12, 2022. The index surpassed the 20%-gain mark back in June and,

according to the long-held theory, is now in a bull market. Certainly, there

were some wobbly steps back in August, September, and October, when the

index sold off 2.1%, 5.0%, and 4.0%, respectively, due to high inflation and

high interest rates. But the market seems to have settled down in November

and stocks are closing in on new 52-week highs. What can investors expect

going forward from a bull market? We have studied the 13 bull markets that

have occurred since the end of World War II. On average, the S&P 500

gained 164% during these 13 periods, which averaged 57 months in duration.

We also note that the recent bull markets have generated higher returns over

longer periods of time. On average, the five bull markets since 1980 have

seen stocks advance about 240% over a period of 70 months. And the bull

market prior to the pandemic carried on for 11 years and stocks rose 500%. It

is worth pointing out, though, that the 2009-2020 bull market began with

stocks deeply depressed on valuation, whereas stocks are already a bit above

fair value in the current market environment as interest rates are high and

earnings growth is only beginning to ramp up. Even so, if rates continue to

head lower on mild inflation news, earnings growth accelerates and the

economy can avoid a recession, then this new bull market could have some

room to run.

OCBC

DBS

Your daily newsletter

China aims to stabilise the property sector by plugging $446b funding shortfall
Singapore’s core inflation rebounds to 3.3% in October, driven by higher cost for services, retail goods and energy
Apple sales volume lagged behind Huawei and Xiaomi on China’s singles day

Latest changes: DBS Equity Picks

DBS Equity Picks have consistently outperformed market benchmarks since inception.

NEW REMOVAL(S)

Remove Capitaland Ascendas REIT from dividend category (Singapore)

Remove Mapletree Logistics Trust from dividend category (Singapore)

Singapore REITs

3 REITs most vulnerable to profit taking as the US 10Y yield hits immediate support

Our recent view for the US 10Y yield to decline further towards 4.25-4.35% immediate support that should drive another leg up for REITs panned out as expected.
We see likelihood of a near-term rebound in US 10Y yield to 4.65-4.7% level over the next 2-3 weeks heading into the 13 December FOMC meeting that should see a pullback in REITs following their strong performance recently.
What are the REITS most susceptible for correction following their strong recent run-up in share prices?
Click here to read our views

Thai Beverage Public Company (THBEV SP)

Investing to strengthen Spirits brand

FY23 revenue and earnings slightly below expectations by 1.6% and 5.3% respectively
FY24F/25F earnings revised down by 4.0%/2.9% on higher A&P mitigated partly by higher interest income
What factors contributed to the miss?
Click here to read our views

Ningbo Ronbay New Energy Technology (688005 CH)

Increasing market share with global presence (Initiating Coverage)

Global high-nickel NCM cathode leader with 10% market share
Diversified product matrix with wide market recognition
Profitability expected to recover on stabilised lithium prices
What is our recommendation and TP?
Click here to read our views

Futu Holdings Ltd (FUTU US)

3Q23 earnings slightly above with strong client growth

3Q23 earnings +45% y-o-y / -3% q-o-q to HK$1,091m, in-line with expectations, with 9M23 earnings reaching 77% of our/consensus’ FY23F forecast
The company acquired 65k of new clients during the quarter, above expectations, with encouraging contribution from new offline store in HK
What factors contribute to our outlook?
Click here to read our views

China Gas Holdings Ltd (384 HK)

1HFY24 results preview

Expect 5% decline in 1HFY24 net profit due to lower new gas connection, higher finance cost and depreciation of Rmb
Estimate gas volume growth of 5.5% in 1H, with higher dollar margin of Rmb0.56/cm
What is expected to lead the earnings rebound in 2H?
Click here to read our views

Singapore Equity Picks: Read more

Hong Kong Equity Picks: Read more

UOB

UOBKH: Country Dailies: Friday, November 24, 2023

Click on the link for Greater China Daily.

https://research.uobkayhian.com/content_download.jsp?id=76296&h=3dd074037564995e50e7fbea851bba0a

Click on the link for Indonesia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76297&h=a8332c3cfa5211ee092650a92021d8a7

Click on the link for Malaysia Daily.

https://research.uobkayhian.com/content_download.jsp?id=76313&h=b7c27c21d90e21768384221e071aa48

Click on the link for Singapore Daily.

https://research.uobkayhian.com/content_download.jsp?id=76293&h=5ff7300a66f00b85ecdeb4ec3346b3b0

Click on the link for Thailand Daily.

https://research.uobkayhian.com/content_download.jsp?id=76315&h=8f488848d46573b67a6c7560ad04d258

UOBKH: Retail Market Monitor: Friday, November 24, 2023

https://research.uobkayhian.com/content_download.jsp?id=76292&h=c03de839a4a3659642321f50d8b0259d

KGI

TRADING IDEAS: 🇸🇬 SINGAPORE

24 November 2023

🏙 Centurion Corp Ltd (CENT SP): Early signs of a re-rating catalyst

BUY Entry 0.40 – Target – 0.44 Stop Loss – 0.38

🏢 Sasseur REIT (SASSR SP): RMB strengthening

BUY Entry 0.69 – Target – 0.75 Stop Loss – 0.66

Top Stories, 24 Nov 2023

1. Asia markets largely up as investors assess key Japan economic data releases

https://www.kgieworld.sg/research/6o62

2. Introducing HKEX Options on Futures Contracts (OOF) on on Hang Seng Index Futures and Hang Seng China Enterprises Index Futures. The new OOF will offer investors the opportunity to take a futures position on HKEX’s markets prior to the settlement of the underlying futures contract.

Find out more: https://www.kgieworld.sg/research/hkex-oof

3. China oil demand growth poised to slow to around 4% in H1 2024 -analysts

https://www.kgieworld.sg/research/vzia

4. Oil slips 1% on concerns over delayed OPEC+ meeting

https://www.kgieworld.sg/research/ivfa

5. US EV Market To Cross Million-Unit Mark in 2023 As Demand Slows

https://www.kgieworld.sg/research/ttmn

6. Gold Price Forecast: XAU/USD attracts some sellers below $2,000 on the renewed USD demand

https://www.kgieworld.sg/research/tcgs

CIMB

Trendspotter of the day (SIN/HKG/MAL): 24th November 2023

Please refer to below for the technical charts of the day.

SIN

ESR-LOGOS REIT – Technical Buy

Bullish uptrend is in an early stage

HKG

China Vanke Co Ltd (2202) – Technical Buy

Rounding bottom spotted

China Overseas Land & Investment Ltd (688) – Technical Buy

Breaking out of diamond bottom

Power Assets Holdings Ltd (6) – Technical Buy

Early uptrend

MAL

Kelington Group (0151) – Technical Buy

At 9-month high

Comfort Gloves (2127) – Technical Buy

Short-term uptrend?

APAC: ASIA Pacific Daily - 24 November 2023

▌ RECOMMENDATION CHANGES & INITIATIONS...

MAL: SP Setia (HOLD▼, tp:MYR0.90) - High interest costs affect bottomline (23/11)

▌ TARGET PRICE CHANGES...

KR: Hanssem Co Ltd (HOLD, tp:KRW51,000.00▲) - Tardy recovery (23/11)

KR: KC Tech Co Ltd (ADD, tp:KRW33,000.00▲) - Higher sales expectations for 2024F (23/11)

KR: Soulbrain (ADD, tp:KRW310,000.00▲) - 2H23F likely its trough; better days ahead (23/11)

MAL: AMMB Holdings (ADD, tp:MYR4.86▲) - NIM bounced back in 2QFY3/24 (23/11)

MAL: Petronas Dagangan Bhd (REDUCE, tp:MYR17.79▲) - How much might fuel subsidies be reduced? (23/11)

MAL: Syarikat Takaful Malaysia Keluarga Bhd (ADD, tp:MYR4.50▲) - Riding on robust revenue growth (23/11)

SIN: Thai Beverage (ADD, tp:SGD0.67▼) - Resilient spirits performance (24/11)

THB: Muangthai Capital (REDUCE, tp:THB35.50▼) (ESG) - Better asset quality but valuation demanding (23/11)

THB: SC Asset Corporation (ADD, tp:THB3.90▼) - Better days ahead in 4Q23F (23/11)

▌ SECTOR & COMPANY NOTES...

CHN: Technology - Handsets (NEUTRAL) - Strong smartphone sales at China’s 11.11 (24/11)

MAL: Dayang Enterprise Holding (ADD, tp:MYR2.50) - Within expectations (23/11)

MAL: Genting Bhd (ADD, tp:MYR6.95) - Winning at every table (24/11)

MAL: Genting Malaysia (ADD, tp:MYR4.00) (HC) - Strong earnings recovery well underway (23/11)

MAL: Malayan Cement Bhd (ADD, tp:MYR5.55) - Solid start to the year (23/11)

MAL: SAM Engineering & Equipment (HOLD, tp:MYR4.95) - Uplift in 2QFY3/24 boosted by US$ tailwind (24/11)

MAL: Telekom Malaysia (ADD, tp:MYR6.80) (HC) - 3Q23 results continue the march (23/11)

MAL: WCT Holdings (ADD, tp:MYR0.706) - A dismal quarter, but better prospects in FY24F (23/11)

MAL: YTL Corporation (ADD, tp:MYR1.91) - Strong 1Q; likely FBM KLCI constituent (23/11)

MAL: YTL Power International (ADD, tp:MYR2.40) - Another record quarter (23/11)

SIN: City Developments (ADD, tp:SGD8.97) (ESG) - A resilient 3Q23 (24/11)

SIN: Frencken Group Ltd (ADD, tp:SGD1.37) - Most segments’ revenue to grow hoh in 2H23F (23/11)

▌ RECENT 'IDEAs OF THE DAY'...

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)

THB: Hana Microelectronics (ADD▲, tp:THB80.00▲) (ESG) - Multiple tailwinds to drive OP growth (10/10)

ASEAN: CGS-CIMB ASEAN Daily - 24 November 2023

▌ RECOMMENDATION CHANGES & INITIATIONS