SGX
Inside Commodities - Wednesday, November 29, 2023
Phillip Capital Market Reports:
Phillip Daily Morning Note :
US Market (By Phillip Global Markets Night Desk)
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DBS
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Fed Governor is increasingly confident that current level of Fed policy rate is sufficiently restrictive
US online consumer spending jumped to record US$38bn during Cyber Week, exceeding expectations
Bill Ackman sees risk of hard landing, bets FED may cut rates as soon as 1Q24,
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Latest changes: DBS Equity Picks
DBS Equity Picks have consistently outperformed market benchmarks since inception.
NEW ADDITION(S)
Add Mapletree Logistics Trust to Dividend category (Singapore)
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Regional Thermal Coal
Has coal price bottomed out?
Newcastle coal price to trend between US$120-150 per ton in 2024 and 2025, 17-33% lower than 2023 average
China coal imports anticipated to soften in 1H24 while dry weather means Indonesia will continue to maintain high coal production
Coal stocks still churn good dividends but we prefer to be selective for our 2024 picks
Who are our top picks for the regional thermal coal?
StarHub Ltd (STH SP)
Investor day takeaways – focus on Ensign & revision in transformation costs
StarHub’s targets translate to over 11% earnings CAGR over FY23-27F; we stick to our earnings CAGR projection of 9% over FY23F-25
StarHub highlighted high revenue growth at its cybersecurity arm (Ensign), which does not seem to be reflected in its share price.
What is our outlook for the company?
Cafe De Coral Holdings Ltd (341 HK)
On track with earlier profit alert
Café de Coral 1H24 results in-line with earlier profit alert.
Net earnings rose 84% to HK$201m, lifted by strong sales leverage and higher interest income
HK operations recorded decent recovery, while China recovery pace is slightly softer than expected
Do we expect any increase in its dividend payout?
Singapore Equity Picks: Read more
Hong Kong Equity Picks: Read more
UOB
UOBKH: Retail Market Monitor: Wednesday, November 29, 2023
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UOBKH: Country Dailies: Wednesday, November 29, 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: 29 November 2023
🇸🇬 SG
Hour Glass Ltd/The (HG SP)
Japfa Ltd (JAP SP)
🇭🇰 HK
Hansoh Pharmaceutical Group Co Ltd (3692 HK)
CSPC Pharmaceutical Group Ltd (1093 HK)
Read More: https://www.kgieworld.sg/research/nov29ta23
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TRADING IDEAS: 🇸🇬 SINGAPORE
29 November 2023
🏙 Tianjin Pharmaceutical Da Re Tang Group Corp Ltd (TIAN SP): Respiratory illness strikes Northern China
BUY Entry 2.04 – Target – 2.20 Stop Loss – 1.96
🏢 Sasseur REIT (SASSR SP): RMB strengthening
BUY Entry 0.69 – Target – 0.75 Stop Loss – 0.66
➡️ Read More: https://www.kgieworld.sg/research/nov29sg23
Top Stories, 29 Nov 2023
1. Stock futures are little changed as investors assess pause in November rally: Live updates
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. Gold extends gains on Fed pause bets, dollar retreat
4. OPEC+ Rollover Agreement Likely Scenario, Meeting Could Be Delayed Again
5. How China’s lottery boom reflects a ‘long and challenging road’ to its economic recovery
6. NUSD/JPY tumbles to 147.00, eyes on the US GDP data
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CIMB
ASEAN: CGS-CIMB ASEAN Daily - 29 November 2023
▌ RECOMMENDATION CHANGES & INITIATIONS
MAL: Petronas Chemicals Group (HOLD▲, tp:MYR7.15▲) - After the 3Q23 trough, risk-reward balanced (29/11)
MAL: UOA Development (REDUCE▼, tp:MYR1.68▲) - Planned launches delayed to 2024 (28/11)
▌ TARGET PRICE CHANGES
IND: Bank Tabungan Pensiunan Nasional Syariah (HOLD, tp:IDR1,650.00▼) - Deteriorating outlook (28/11)
MAL: Telekom Malaysia (ADD, tp:MYR7.30▲) - Breaking free from regulatory headwinds (28/11)
SIN: StarHub (HOLD, tp:SGD1.19▲) - Expecting lower Dare+ spending (28/11)
THB: Dohome (ADD, tp:THB14.60▼) (HC) - Still strong despite delay in govt projects (28/11)
▌ ECONOMIC & STRATEGY NOTES
IND: Strategy Note - Two years into new capital city development (28/11)
THB: Strategy Note - SET50FF: Who’s in and who’s out (28/11)
▌ SECTOR & COMPANY NOTES
MAL: KPJ Healthcare (ADD, tp:MYR1.50) - Strong operational metrics with one-off gains (29/11)
MAL: Muhibbah Engineering (ADD, tp:MYR0.895) - Strong earnings recovery across all divisions (28/11)
MAL: Wasco Bhd (ADD, tp:MYR1.40) - Secures its first CCS pipe-coating project (28/11)
▌ 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
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APAC: ASIA Pacific Daily - 29 November 2023
▌ RECOMMENDATION CHANGES & INITIATIONS...
MAL: Petronas Chemicals Group (HOLD▲, tp:MYR7.15▲) - After the 3Q23 trough, risk-reward balanced (29/11)
MAL: UOA Development (REDUCE▼, tp:MYR1.68▲) - Planned launches delayed to 2024 (28/11)
▌ TARGET PRICE CHANGES...
HKG: Perfect Medical (ADD, tp:HKD7.40▼) - 2HFY24F revenue set to accelerate (29/11)
IND: Bank Tabungan Pensiunan Nasional Syariah (HOLD, tp:IDR1,650.00▼) - Deteriorating outlook (28/11)
KR: Kolon Industries (ADD, tp:KRW50,000.00▼) - Capacity expansion to support OP recovery (28/11)
KR: PI Advanced Materials (ADD, tp:KRW36,000.00▼) - Slower-than-expected recovery in 3Q23 (28/11)
MAL: Telekom Malaysia (ADD, tp:MYR7.30▲) - Breaking free from regulatory headwinds (28/11)
SIN: StarHub (HOLD, tp:SGD1.19▲) - Expecting lower Dare+ spending (28/11)
THB: Dohome (ADD, tp:THB14.60▼) (HC) - Still strong despite delay in govt projects (28/11)
▌ STRATEGY & ECONOMIC NOTES...
IND: Strategy Note - Two years into new capital city development (28/11)
THB: Strategy Note - SET50FF: Who’s in and who’s out (28/11)
▌ SECTOR & COMPANY NOTES...
HKG: AIA Group (ADD, tp:HKD91.00) (HC) - Benefitting from 4Q underestimation bias (29/11)
MAL: KPJ Healthcare (ADD, tp:MYR1.50) - Strong operational metrics with one-off gains (29/11)
MAL: Muhibbah Engineering (ADD, tp:MYR0.895) - Strong earnings recovery across all divisions (28/11)
MAL: Wasco Bhd (ADD, tp:MYR1.40) - Secures its first CCS pipe-coating project (28/11)
▌ 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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Please refer to below for the technical charts of the day.
SIN
Bottom mean-reversion
HKG
Uptrend to continue
Uptrend remain strong
MAL
At 7-month high
Wedge breakout
Best Regards,
Lim&Tan
MayBank
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