SGX
kopi-C with Nera Telecommunications' CEO: “Work hard, stick to your goals and keep going”
Phillip Capital Market Reports:
Phillip Daily Morning Note :
US Market (By Phillip Global Markets Night Desk)
OCBC
DBS
Market News
Meta’s 3Q EPS of US$4.39 beats estimates, warned on ad revenue being subject to volatile macro landscape
Boeing’s 3Q EPS of -US$3.26 misses estimates, reaffirmed free cash flow guidance
Deutsche Bank’s 3Q net profit of EUR1.0bn beats estimates, promised more share buybacks next year
China/HK equity strategy
Little surprise from 2023 HK Policy Address
The HK govt halved Buyers Stamp Duty and New Residential Stamp Duty for home purchase, an expected move which should help stabilize the market sentiment
Stamp duty for stock trading will also be cut to 0.1% vs 0.13% previously, but we think the impact on trading volume and market performance will be rather limited
Do we believe these new measures will support recovery in the HK market?
Click here to read our views
Regional Auto Sector
EV sector emerging as a beneficiary of high oil prices
Short-term challenges for the industry amid labour strike and elevated interest rates in the US and Europe
EV sector to outperform, benefitting from high oil prices. Chinese EV has strong positive correlation with gasoline price
Who are our top picks in the sector?
Click here to read our views
Singapore Technology
Sentiment waning after Golden Week
Industry recovery intact; further improvements for PC and mobile shipments
Looking beyond a weak 2023; strong earnings recovery expected in 2024
Which companies will be key beneficiaries of PC and mobile shipment recovery?
Click here to read our views
Frasers Centrepoint Trust (FCT SP)
Remaining top of class
Full-year NPI up 2.7% y-o-y but DI flat owing to increase in finance cost; FY23 DPU of 12.15Scts in line with estimates
Stellar operations with record-high occupancy of 99.7% and strong full-year rental reversions of +4.7%; cap rates unchanged across portfolio, at c.4.50%-4.75%
What is our outlook for its gearing going into FY24?
Click here to read our views
DBS Group Research | Equity Picks
Singapore Equity Picks: Read more
Hong Kong Equity Picks: Read more
UOB
UOBKH: Country Dailies: Thursday, October 26, 2023
Click on the link for Greater China Daily.
Click on the link for Indonesia Daily.
Click on the link for Malaysia Daily.
Click on the link for Singapore Daily.
Click on the link for Thailand Daily.
UOBKH: Regional Morning Meeting Notes: Thursday, October 26, 2023 (PM EDITION) - Additional: 300014 HK [GC Strategy, 300015 CH, 600019 CH, 688 HK, 300014 HK, 2331 HK, UNVR IJ, CLMT MK, VEB MK, FEHT SP, TH Banking]
Click on the link for details.
UOBKH: Retail Market Monitor: Thursday, October 26, 2023
Click on the link for details.
UOBKH: Regional Morning Meeting Notes: Thursday, October 26, 2023 [GC Strategy, 300015 CH, 600019 CH, 688 HK, 2331 HK, UNVR IJ, CLMT MK, VEB MK, FEHT SP, TH Banking] Click on the link for details.
KGI
Top Stories, 26 Oct 2023
1. Asian Stocks to Open Mixed, Yen Passes Key Level: Markets Wrap
2. SGX FTSE China A50 Index Futures is the world’s only USD-denominated futures offering investors an efficient way to access the China A-share market.
Find out more: https://www.kgieworld.sg/futures/sgx-a50
3. China's big policy moves draw cautious investors back to beat-down stock market
4. US new home sales surge to fastest clip since February 2022
5. Oil prices settle up about 2% on worries about Middle East
6. USD/JPY hits highest bids in a year, taps 150.32
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Technical Analysis: 26 October 2023
🇸🇬 SG
First Resources Ltd (FR SP)
Genting Singapore Ltd (GENS SP)
🇭🇰 HK
Wynn Macau Ltd (1128 HK)
MGM China Holdings Ltd (2282 HK)
Read More: https://www.kgieworld.sg/research/oct26ta23
CIMB
SIN: Far East Hospitality Trust - Hotel RevPAR still in recovery (ADD - Maintained)
SIN: Frasers Centrepoint Trust - Suburban retail demand holding strong (ADD - Maintained)
HKG: Property - Overall - Supportive measures to stabilise the market
MAL: CGS-CIMB Daybreak - 26 October 2023
ASEAN: CGS-CIMB ASEAN Daily - 26 October 2023
Equity Research Reports....
▌ SECTOR & COMPANY NOTES
IND: Bank Rakyat Indonesia (ADD, tp:IDR6,100.00) (HC)(ESG) - 3Q23: strong loan growth and NIM, while NPL guidance revised up (25/10)
MAL: Gamuda (ADD, tp:MYR5.65) - Largest Taiwan win; penetrating MRT space (25/10)
THB: The Erawan Group (ADD, tp:THB6.00) (HC) - Solid outlook for the next 12 months (25/10)
THB: Hospitals (OVERWEIGHT) - Tailwinds from foreign patient traffic (25/10)
▌ RECENT 'IDEAs OF THE DAY'...
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)
MAL: Strategy Note - One step at a time (4/10)
MAL: Economic Focus - Budget 2024 Preview: Tightening purses (2/10)
APAC: ASIA Pacific Daily - 26 October 2023
Equity Research Reports....
▌ TARGET PRICE CHANGES...
HKG: BYD Co Ltd (ADD, tp:HKD389.00▲) (ESG) - Strong EV deliveries to lead EPS growth (25/10)
KR: Kakao (ADD, tp:KRW61,000.00▼) - Likely margin improvement in FY24F (25/10)
▌ STRATEGY & ECONOMIC NOTES...
CHN: Strategy Note - China approves Rmb1tr sovereign bond (25/10)
▌ SECTOR & COMPANY NOTES...
CHN: Jonjee Hi-Tech Industrial (ADD, tp:CNY41.80) - A good sales recovery expected with a new mgt team (25/10)
HKG: AIA Group (ADD, tp:HKD91.00) (HC) - VONB: Higher for longer (25/10)
HKG: ASMPT Limited (ADD, tp:HKD95.00) - Awaiting semiconductor recovery in 2024F (25/10)
HKG: Property - Overall (NEUTRAL) - Supportive measures to stabilise the market (25/10)
IND: Bank Rakyat Indonesia (ADD, tp:IDR6,100.00) (HC)(ESG) - 3Q23: strong loan growth and NIM, while NPL guidance revised up (25/10)
MAL: Gamuda (ADD, tp:MYR5.65) - Largest Taiwan win; penetrating MRT space (25/10)
THB: The Erawan Group (ADD, tp:THB6.00) (HC) - Solid outlook for the next 12 months (25/10)
THB: Hospitals (OVERWEIGHT) - Tailwinds from foreign patient traffic (25/10)
▌ RECENT 'IDEAs OF THE DAY'...
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)
MAL: Strategy Note - One step at a time (4/10)
MAL: Economic Focus - Budget 2024 Preview: Tightening purses (2/10)
CGS-CIMB SG/Msia Preview 26 Oct
SINGAPORE
DOW -105pts (-0.3%) NDQ -319pts (-2.4%) SPX -61pts (-1.4%) WTI (+2.0%) GOLD (+0.2%)
Wall Street closed the day with losses after disappointing GOOGL results and a rebound in interest rates. S&P500 closed below 4,200 level since May while NDX ended its worst session since Feb. Meta reported better-than-expected results for the third quarter after trading hours. US 10Yr Treasury yield hovered around multi year high level at 4.95%. Brent settled at $90.13/bbl buoyed by worries about conflict in the Middle East.
CGS-CIMB Highlights
* UOB (UOB SP) recorded core net profit of S$1.48bn in 3Q23 (-2% qoq, +5% yoy), in line with our estimate, but 8% above consensus’ expectations. NIM contracted 3bp qoq to 2.09% in 3Q23. Strong fees – boosted by credit cards and loan-related fees. Credit costs came up to 19bp in 3Q23 thanks to GP writebacks, within guidance. 2024 outlook unveiled: Mid single-digit loan growth. Margins to remain at current levels. Double-digit fee growth . Stable CTI (one-time costs from Citigroup acquisition to substantially roll off). Credit cost at around 25-30bp (higher than FY23F guidance of c.25bp). Add with TP of S$33.30. UOB will be holding its earnings briefing this morning.
* CICT (CICT SP) 3Q23 gross revenue +4.6% yoy while NPI +0.6% yoy. 9M23 gross revenue +9.8% yoy to S$1166.1m while NPI +6.8% yoy to S$827.3m. Revenue broadly in line at 77% of our FY23 forecast. Committed portfolio occupancy +0.6% pts to 97.3% with retail occupancy at 99% and office increased to 96.4%. Office rent reversion came in at +8.8% YTD. Gearing at 40.8%. Cost of debt rose qoq to 3.3% and ICR dipped to 3.1x. Add with TP of S$2.57.
* Mapletree Ind Tr (MINT SP) 2Q/1H DPU of 3.32/6.71 Scts is within expectations at 24.5%/49% of our FY24F forecast. Although 2Q revenue was 0.8% lower yoy, higher JV income, release of compensation from the compulsory acquisition as well as divestment gain helped boost distribution income by 3.5% yoy. Portfolio occupancy rate at 93.2% vs 93.3% in 1Q due to slight dip in Singapore business park take up but offset by higher US occupancy. All in cost of debt declined to 3.2% with the inclusion of Yen debt following the purchase of the Osaka DC. 79.2% of debt hedged. Add with TP of S$2.61.
* ESR-Logos Reit (EREIT SP) Gross revenue +19.2% yoy to S$290.7m, NPI +19.4% to S$206.1m in 3Q. Continue to see positive rental reversion of +13.5% in 3Q (9m23 +12%) with portfolio occupancy lower at 90.3% as Singapore occupancy dipped to 86.7%. Completed divestment of S$380m YTD and 7000 AMK achieved 50% occupancy at TOP. Gearing at 37.7% as at 3Q23 (35.3% if announced divestments are completed). Cost of debt stable qoq at 3.93%. FY23 refinancing completed.
* iFAST (IFAST SP) recorded 3Q23 PATMI of S$8.5m (+137% qoq, +308% yoy, vs. S$3.6m in 2Q23). This was 5%/12% above our/consensus’ S$8.1m/ S$7.6m estimates. HK ePension project made an initial one-month contribution in 3Q23, key reason for the earnings beat. We estimate HK ePension one-month contributions of c.S$6.7m – placing iFAST on track to meet its FY23F guidance on HK contributions. declared 3Q23 interim DPS of S$1.3Scts – stable yoy. iFAST guides for its banking division to remain loss-making for the next 3 quarters (until 2Q24F). Hold with TP of S$4.90.
OTHER NEWS
* Capland Investment (CLI SP) Wholly owned subsidiary, Ascendas Hospitality Fund Management, has been placed under members’ voluntary liquidation. No material impact on financial statements expected
* Mapletree Log Tr (MLT SP) expects to make up to S$300M in acquisitions in its current financial year in South and SE Asia. Also expects to divest S$500M in assets in the coming years.
* Yoma Strategic (YOMA SP) TRIS Rating affirms the rating of “AAA” on guaranteed bonds of Yoma Strategic Holdings Ltd. (YSH) with a “stable” outlook. Simultaneously, TRIS Rating assigns a rating on guaranteed bonds of up to THB1.9 billion due within five years of YSH at “AAA”. The bonds are guaranteed by Credit Guarantee and Investment Facility (CGIF, rated“AAA/stable”), a trust fund of the Asian Development Bank (ADB).
* ASTI Holdings (ASTI SP) The offerers ceased interest in the company after it failed to prepare audited financial statements of the company for FY2022 by Sep 30, 2023. This had been a condition upon which the offer was contingent. No acquisition will be pursued.
MALAYSIA
Asian stock markets had mixed results. The local benchmark, FBMKLCI (KLCI), gained 0.48% to close at 1,442.51. Top sectors were industrial products, technology, and utilities, while construction and energy lagged. The benchmark rebounded and closed above the 1,430-1,438 support, aiming for the 1,450 resistance. A drop below 1,430 indicates a deeper consolidation with support at
1,412-1,416.
CGS-CIMB Highlights
*Gamuda Bhd (GAM MK)- Largest Taiwan win; penetrating MRT space (Maintain Add with a TP of RM5.65)
COMPANY NEWS
*Gamuda Bhd (GAM MK) together with its joint venture partner in Taiwan, has bagged a design and build contract for the construction of Taiwan’s Kaohsiung MRT metropolitan line from Kaohsiung City government for RM3.45bn.
*Malaysia Airports Holdings Bhd (MAHB MK) has disposed of its 11% equity interest in GMR Hyderabad International Airport Ltd (GHIAL) for US$100m (RM478.85m) cash. MAHB is expected to net a gain of US$23.70m from the disposal.
*Axis REIT (AREIT MK) is acquiring industrial premises in Negeri Sembilan for a cash consideration of RM48m. The vendors of this transaction are BSS Development Sdn Bhd and Matrix IBS Sdn Bhd.
*Astro Malaysia Holdings Bhd (ASTRO MK) wholly-owned unit Measat Broadcast Network Systems Sdn Bhd (MBNS) has secured a term loan facility of up to RM160m from AmBank (M) Bhd.
*Hong Leong Group is considering selling its majority stake in Southern Steel Bhd and seeking a valuation of as much as US$200m (RM944m) for the unit, people familiar with the matter said.
*Capital A Berhad (CAPITALA MK) the parent of AirAsia, is planning to raise more than US$1bn (RM4.7bn) in debt and equity, and will list some of its businesses through a blank-cheque company, the Financial Times reported on Wednesday.
*AEON Credit Service (M) Bhd (ACSM MK) said it has obtained financial regulators’ approval for the initial shareholding structure of its Islamic digital bank venture. The MOF has given its approval for AFS to hold an 80.75% stake in ACS Digital. BNM has also approved the proposed shareholding structure for ACS Digital, with AEON Credit and AFS having equal proportions of 50%.
Lim&Tan
MayBank
Mapletree Logistics Trust | Keeping the faith Krishna Guha
Far East Hospitality Trust | Riding the tailwinds Krishna Guha
SG Daily Newsletter | Thursday: Market Shaping News Singapore Research Team
FEATURED CALLS
Singapore | Mapletree Logistics Trust Keeping the faith Krishna Guha
Malaysia | Technical Trading Ideas: Stronger rebound in both mid & small-cap stocks Nik Ihsan Raja Abdullah
MAYBANK SECURITIES - EM Asia Headlines 261023
Indonesia
RI, US officials discuss critical minerals, semiconductors Finance Ministry expects 5.1% growth in 2023 Sri Mulyani: Indonesia Sees State Budget Surplus of Rp67.7t Until Sept. 2023
Malaysia
Philippines
Singapore
Thailand
Drought likely to push up sugar prices Srettha touts land bridge project PM 'excited' to meet Apple CEO Vietnam
China
India
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