My interview with ZaoBao on 27th Nov :
SGX
Phillip Capital Market Reports:
Phillip Daily Morning Note :
US Market (By Phillip Global Markets Night Desk)
27 November 2023
ESG Investing Continues to Grow
Global assets under management in ESG (Environmental, Social,
Governance) strategies grew to $40 trillion in 2020, up from $23 trillion in
2016 and on track for $50 trillion by 2025, according to the Global
Sustainable Investment Association. As assets flowed in over the past 40
years, ESG investing evolved. The discipline, originally known as Socially
Responsible Investing, focused first on excluding companies that conducted
business in South Africa, or participated in industries such as tobacco,
alcohol, and firearms. In time, the list of industries to avoid increased.
Performance of initial strategies lagged and the approach was modified. Now,
instead of identifying industries to avoid, the discipline promotes
"sustainable" business practices across all industries that can have an
"impact" on issues such as the climate, hunger, poverty, disease, shelter, and
workers' rights. At Argus, we track ESG developments at companies as part of
our management analysis. In addition to reviewing and measuring ESG
proclamations from the companies we cover, we partner with an ESG
research firm, the JUST Capital Foundation, and leverage its analysis on the
topic. JUST utilizes a combination of data-driven research and strategic
engagement in an attempt to shift norms and practices in corporate America
and the financial markets. Drawing on JUST rankings of stocks in the Russell
1000, we have compiled focused lists of companies followed by Argus that
are in position to have a "sustainable impact" on the environment, workplace,
community, and marketplace. We also have a Theme Model Portfolio based
in part on the ESG criteria.
Market Wrap
US stock futures pointed to a muted Wall Street open as data showed a sharp slowdown in China’s industrial profits, reinforcing investor concerns about its sluggish economy.
Nasdaq futures retreated as much as 0.5% before paring the loss to trade little changed, in line with Europe’s Stoxx 600 index. Yields on 10-year Treasuries were flat after briefly touching their highest in more than a week. Gold climbed to a six-month high, while the dollar fell 0.1%.
Today's Big News
Blackstone’s Schwarzman Sees Opportunities in Europe Real Estate
Billions Wiped Out as Stock-Safety Trade on Wall Street Misfires
Signa’s Insolvency Wave Nears as Last-Ditch Funding Talks Falter
China to Push Banks to Reduce Inflation-Adjusted Lending Rates
Musk Says He’d Like to Help Rebuild Gaza in Chat With Netanyahu
Signa Insolvency Wave Nears as Last-Ditch Fund Talks Falter (1)
OCBC
DBS
Your daily newsletter
Mastercard SpendingPulse: US Black Friday retail sales +2.5% y-o-y, led by +8.5% from e-commerce sales
Singapore’s October industrial production rose 7.4% y-o-y, marking first gain in more than a year
Markets’ ‘fear gauge’ VIX Index fell to its lowest since January 2020
Singapore P2P Transportation Sector
Complementary businesses key to sustainable profitability
Expect average car prices to stay above S$130k, supporting transition from car ownership to ride-hailing and public transport
Ample room for fleet growth, still 14% below pre-Covid
Having complementary businesses key to sustainable profitability in ride-hailing market
Who are our top picks in the P2P transport sector?
CapitaLand Investment Limited & REITs
Awaiting the right opportunity to pounce
Our recent CapitaLand Investment Limited & its managed REITs investor day has reinforced our belief that investors are actively seeking the right opportunities on the back of a more favorable interest rate environment
Both CLINT and CLAS offer robust growth potential on the back of stronger organic growth, strategic acquisitions and developments
S-REIT bellwethers CICT and CLAR have shown resilience by leveraging on their diversified exposure to benefit from the cyclical upturn in new economy sectors and retail
What are our top-picks for those who prefer geographically focused REITs?
Far East Consortium International Ltd (35HK)
1HFY24 result preview
Higher development earnings expected
Hotel contributions from Hong Kong should fall on high base
What are the key metrics investors should look out for?
Singapore Equity Picks: Read more
Hong Kong Equity Picks: Read more
UOB
UOBKH: Regional Morning Meeting Notes: Monday, November 27, 2023 [823 HK, ROTI IJ, SDPL MK, TNB MK, OPPSTAR MK, REXI SP, PTT TB]
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UOBKH: Retail Market Monitor: Monday, November 27, 2023
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UOBKH: Country Dailies: Monday, November 27, 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.
KGI
Technical Analysis: 27 November 2023
🇸🇬 SG
Propnex Ltd. (PROP SP)
Sheng Siong Group Ltd. (SSG SP)
🇭🇰 HK
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd (874 HK)
Sinopharm Group Co Ltd (1099 HK)
Read More: https://www.kgieworld.sg/research/nov27ta23
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TRADING IDEAS: 🇸🇬 SINGAPORE
27 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
➡️ Read More: https://www.kgieworld.sg/research/nov27sg23
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Top Stories, 27 Nov 2023
1. Asian markets poised for positive start as region awaits key data out of China and Japan
2. Introducing ICE Micro MSCI Index Futures. Calculated by MSCI, a leading provider of index solutions serving the world’s institutional investors, the MSCI USA and MSCI Europe Indices are designed to capture the full opportunity set in their respective regions.
3. Bitcoin rally anticipated amid surge in dollar liquidity and regulatory calls
4. Europe Looks To Reduce Risks from Chinese Dependence in Offshore Wind
5. China, Japan, South Korea seek summit in latest bid to ease relations
6. Gold Price Forecast: XAU/USD climbs above $2,000 on the weaker Dollar, focus on the US GDP, PCE data
CIMB
APAC: ASIA Pacific Daily - 27 November 2023
KR: Hugel Inc (ADD, tp:KRW181,000.00▲) - Riding on China’s BTX market expansion (24/11)
We expect Hugel to register sales/OP CAGR of 37%/56% from FY23F to FY25F, supported by strong growth in the Chinese BTX market. We believe Hugel will achieve a market share (M/S) of 20% in China by FY25F, thanks to its price competitiveness and product quality and reliability. We resume coverage on Hugel with an Add rating and TP of W181k
▌ RECOMMENDATION CHANGES & INITIATIONS...
KR: Medy-Tox (ADD▲, tp:KRW260,000.00▲) - Market share expansion in 2024-25F (24/11)
THB: Sino-Thai Eng & Construction (ADD▲, tp:THB10.20) - Attractive risk/reward (24/11)
▌ TARGET PRICE CHANGES...
MAL: KPJ Healthcare (ADD, tp:MYR1.50▲) - Increased bed capacity with higher BOR (24/11)
PH: Universal Robina Corporation (ADD, tp:PHP156.90▼) - Less upbeat outlook on soft demand (24/11)
SIN: TDCX Inc (HOLD, tp:USD6.20▼) - Not out of the woods yet (24/11)
▌ STRATEGY & ECONOMIC NOTES...
MAL: Economic Update - 2024 CPI upside risk, pending subsidy review (24/11)
▌ SECTOR & COMPANY NOTES...
CHN: Environmental (NEUTRAL) - Carbon Neutrality Research: Policy and News Update (24/11)
IND: Semen Indonesia (ADD, tp:IDR8,000.00) - Striving for cost efficiency and profitability (24/11)
MAL: Inari-Amertron Bhd (HOLD, tp:MYR2.80) - Still on track to meet RF production target (24/11)
MAL: REIT (NEUTRAL) - Retail: Exchange TRX debuts this month (24/11)
▌ RECENT 'IDEAs OF THE DAY'...
KR: Hugel Inc (ADD, tp:KRW181,000.00▲) - Riding on China’s BTX market expansion (24/11)
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)
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ASEAN: CGS-CIMB ASEAN Daily - 27 November 2023
▌ RECOMMENDATION CHANGES & INITIATIONS
THB: Sino-Thai Eng & Construction (ADD▲, tp:THB10.20) - Attractive risk/reward (24/11)
▌ TARGET PRICE CHANGES
MAL: KPJ Healthcare (ADD, tp:MYR1.50▲) - Increased bed capacity with higher BOR (24/11)
PH: Universal Robina Corporation (ADD, tp:PHP156.90▼) - Less upbeat outlook on soft demand (24/11)
SIN: TDCX Inc (HOLD, tp:USD6.20▼) - Not out of the woods yet (24/11)
▌ ECONOMIC & STRATEGY NOTES
MAL: Economic Update - 2024 CPI upside risk, pending subsidy review (24/11)
▌ SECTOR & COMPANY NOTES
IND: Semen Indonesia (ADD, tp:IDR8,000.00) - Striving for cost efficiency and profitability (24/11)
MAL: Inari-Amertron Bhd (HOLD, tp:MYR2.80) - Still on track to meet RF production target (24/11)
MAL: REIT (NEUTRAL) - Retail: Exchange TRX debuts this month (24/11)
▌ 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)
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CGS-CIMB SG/Msia Preview 27 Nov
SINGAPORE
DOW +117pts (+0.3%) NDQ -15pts (-0.1%) SPX +3pts (+0.1%) WTI (-2.0%) GOLD (+0.1%)
US indexes finished higher with the exception of Nasdaq 100 amid a shortened trading session as sentiment remained positive driven by general consensus of Fed pausing rate hikes. Oil declined on reduced geopolitical risk premium from release of Gaza hostages and ahead of OPEC+ meeting for production cuts. Composite PMI was flat m/m at 50.7. US10Y rose 6bps to 4.47%. Australia’s largest coal export port faced with climate activists protest. FSSTI poised for a positive opening with Asian futures indicating gains. Focus of the day; China industrial profits, coal related stocks, NETLINK, IHH.
CGS-CIMB Highlights
* IHH Healthcare (IHH SP) subsidiary, Fortis Healthcare, to sell Fortis Malar Hospital in Chennai to MGM Healthcare Private Limited for RM71.9m. IHH disclosed valuations for the sale of the hospital is on a slump sale basis due to going concern. As such, we think that the sale is a positive for IHH as Malar is likely not contributing positively to Fortis’ bottom line. However, we expect neutral-to-negative share price movement ahead of IHH’s results which is due 30 November after market trading hours on sky high interest rate of 40% in Turkey which would spell volatility to its Acibadem’s operations.
* Netlink Tr (NETLINK SP) New ICO pricing announced by IMDA slightly better than expected. Monthly residential connection price -2% to S$13.5, Non-resi connection price kept flat at S$55, NBAP connection price -4% to S$70.5. New prices will take effect 1 Apr 2024 (start of NLT's FY3/25F). We believe NLT will be able to sustain its div yield of 6.5% with this pricing review. Expect neutral to slight positive reaction on key overhang removed. We have Add call, TP: $0.95.
OTHER NEWS
* SATS (SATS SP) post notice of 3 consecutive years' losses.
* LHN Ltd (LHN SP) FY23 rev +10.9% y/y, net profit -16.6% y/y, EPS at 9.34 cts vs 11.2 cts prior. Earnings dropped was attributed to fair value losses with investment and JV properties. Net cash from operating acitvities increased to S$54.2M y/y vs S$41.2M prior. Cash rose to S$62.6M as at Sep 30. Special and Final div of 1.0 Scts declared.
* MM2 Asia (MM2 SP) post notice of 3 consecutive years' losses.
MALAYSIA
Most Asian stock markets finished lower on Friday with Hong Kong’s HSI (-1.96%) leading the losses. The local benchmark FBMKLCI (KLCI) stayed relatively flat at 1,453.92. Week-on-week, the index dropped 6.75pts or 0.46%. It was a mixed day for the sectors with the largest gains coming from industrial products (+0.44%), property (+0.35%) and technology (+0.33%). The underperforming sectors were energy (-1.28%), healthcare (-0.81%) and utilities (-0.70%). Trading volume reduced to 3.50bn (down from 3.71bn on Thursday) whereas trading value rose to RM2.35bn (up from RM2.08bn previously). Market breadth stayed negative three days in a row as 392 gainers lost out to 528 decliners.The benchmark closed little change last Friday albeit sitting on the 20-day EMA. The downtrend line from the 1,527 high (currently at 1,450) remains as the immediate support. The odds would still favour the bulls here but the odds are weakening fast. The index could carry on higher to test the 1,477 resistance next IF the benchmark can close above the tough 1,460-1,465 resistance band. Closing below the 1,450 levels warns that more consolidation is required before the bulls can muster the strength to lift prices again.
*🛢️ OIL 🛢️*Oil steadied after a three-day drop on signs OPEC+ may deepen production cuts hen it holds its postponed meeting on Thursday.
WTI: 75.54 (-2.02%)
Brent: 80.58 (-1.03%)
*🌾 PLANTATIONS 🌾*
Palm oil capped its biggest weekly decline in 7 weeks on concerns about Malaysian shipments and lower prices of vegetable oils in the Chinese market.
3rd MONTH FCPO: 3,890.00 (-1.54%)
CGS-CIMB HIGHLIGHTS
KPJ Healthcare - Increased bed capacity with higher BOR (Maintain Add witha higher TP of RM1.50)
https:bit.ly/3Gh6BRb2.
Economic Update - 2024 CPI upside risk, pending subsidy reviewhttps://bit.ly/3GghiTZ3.
Inari-Amertron Bhd - Still on track to meet RF production target (MaintainHold with a TP of RM2.80) https://bit.ly/3QZwfix4.
REIT - Retail: Exchange TRX debuts this month (Maintain Neutral)https://bit.ly/4a5gpeW
COMPANY NEWS
Sunway Property, the real estate arm of Sunway Bhd, has signed a MOU with Putrajaya Holdings Sdn Bhd to team up for the development of commercial land in Precincts 7 and 8 within the administrative capital. (The Edge Malaysia)
*Sime Darby Property Bhd* (SimeProp), which said it is poised to exceed its annual sales target of RM2.7bn, anticipates a more ambitious property sales target for the financial year ending 31 Dec 2024 (FY2024), despite facing higher material costs. (The Edge Malaysia)
*IHH Healthcare Bhd* said its 31.17%-owned associate company, Fortis Healthcare Ltd, is selling the Fortis Malar Hospital in Chennai, India for RM71.9m. (The Edge Malaysia)
*Pharmaniaga Bhd* has denied that the group ignored a letter of demand (LOD) issued by the Ministry of Health (MOH) regarding shortcomings in the procurement of faulty ventilators during the height of the Covid-19 pandemic in 2020. (The Edge Malaysia)
*Malaysia’s headline inflation, measured by the consumer price index (CPI), continued to slow to 1.8% in October 2023*, with the index points recorded at 130.9, compared with 128.6 a year ago. (The Edge Malaysia)
*The Johor government is expected to present the working paper on the proposal to implement a LRT system in the state to the federal government after 30 Nov*, according to a state executive councillor. (Bernama)
*The government will grant a 30-day visa-free entry for citizens of China and India from 1 Dec*, as part of the celebration of the 50-year strategic partnership between Malaysia and China next year, said Prime Minister Datuk Seri Anwar Ibrahim. (Bernama)
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Please refer to below for the technical charts of the day.
SIN
Bullish rebound in place
HKG
Resuming the uptrend
Bottoming out
MAL
Near-term bullishness to continue?
Bullish breakout
APAC+US
Lim&Tan
MayBank
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