reports
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- John Cheong Ming Chern
- Jonathan Koh
- Llelleythan Tan Tan
Singapore Daily - Monday, May 13, 2024
KEY HIGHLIGHTS Sector Banking: 1Q24 round-up: Strong results demonstrate resiliency. Results CSE Global (CSE SP/BUY/S$0.41/Target: S$0.56): 1Q24: Revenue in line; steady order wins reaffirm 2024 outlook. Genting Singapore (GENS SP/BUY/S$0.885/Target: S$1.25): 1Q24: Stellar results within expectations, mainly driven by “Swiftonomics” and seasonal strength during CNY. Maintain BUY and target price of S$1.25. Oversea-Chinese Banking Corp (OCBC SP/BUY/S$13.91/Target: S$18.10): 1Q24: Record-high ...
- Jonathan Koh
United Hampshire US REIT (UHU SP) - 1Q24: Longer WALE After Lease Rene...
UHU’s strip centres have outperformed due to in-migration to suburban locations triggered by entrenched hybrid work arrangements. Long-term lease renewals with Home Depot (Lawnside Common) and LA Fitness (Upland Square, St Lucie West and Garden City) in 1Q24 have lengthened WALE from 7.1 to 7.9 years. Leasing momentum has sustained into 2Q24. UHU provides resilient and attractive 2024 distribution yield of 10.4% and trades at P/NAV of 0.55x. Maintain BUY. Target price: US$0.66.
- Llelleythan Tan Tan
Singapore Post (SPOST SP) - FY24: Delivering Performance Despite Macro...
Despite posting lower FY24 revenue (-9.9% yoy), SPOST reported higher underlying net profit (+28.1% yoy), driven by higher contributions from most business segments. The P&P segment returned to profitability as both the DPP and IPP sub-segments saw better margins. The logistics segment posted lower revenue growth, dragged by normalising sea freight rates while the property segment remained stable. With improving fundamentals, we maintain BUY with a higher target price of S$0.61.
- Heidi Mo Jinghui
- John Cheong Ming Chern
Riverstone Holdings (RSTON SP) - 1Q24: Earnings Above Expectations; Po...
Riverstone’s 1Q24 earnings rose 54.5% yoy to RM72m, beating our forecast by 3%. Revenue was higher yoy and qoq for the fifth consecutive quarter, driven by higher demand for its higher-margin customised healthcare gloves and cleanroom gloves. With a further anticipated recovery in the consumer electronics and healthcare glove industries, we expect increased sales volumes for both segments. Maintain BUY with a 14% higher target price of S$1.00 (S$0.88 previously).
- Jonathan Koh
Oversea-Chinese Banking Corp (OCBC SP) - 1Q24: Record-high Earnings De...
OCBC delivered a record-high net profit of S$1,982m in 1Q24 (+5% yoy), supported by the recovery of wealth management, normalised contribution from insurance, and strong trading income. CET-1 CAR improved 0.3ppt qoq to 16.2%, which is the highest among the local banks. The proposed privatisation of GEH is funded by internal cash and enhances pro forma 2023 ROE by 0.2ppt to 14.0%. OCBC provides an attractive dividend yield of 6.4% for 2025. Maintain BUY. Target price: S$18.10.
- Jack Goh Tooan Orng
Genting Singapore (GENS SP) - 1Q24: A Touch Of Wanderlust
Tracking MBS, GENS’ 1Q24 results reflect a wide array of operational refinement across both the gaming and non-gaming segments. We attribute this to higher regional tourist arrivals and consumption driven by mega entertainment events such as Taylor Swift’s six concerts, as well as seasonal strength during the CNY period. We remain convinced that such a growth trend will be sustained throughout 2024, while GENS offers meaningful capital upside. Maintain BUY and target price of S$1.25.
- Heidi Mo Jinghui
- John Cheong Ming Chern
CSE Global (CSE SP) - 1Q24: Revenue In Line; Steady Order Wins Reaffir...
CSE's 1Q24 revenue of S$197m (+24% yoy) is in line with expectations, making up 25% of our full-year estimate. Revenue growth was mainly attributable to the ongoing completion of 2023 orders for electrification projects and contributions from new acquisitions. CSE’s healthy order inflow attests to its strong track record to capture growing demand, while its recent share placement puts it in a better position to achieve inorganic growth. Maintain BUY and target price of S$0.56.
- Jonathan Koh
Singapore Banking - 1Q24 Round-up: Strong Results Demonstrate Resilien...
Banks delivered strong earnings in 1Q24 (DBS: +15% yoy, OCBC: +5% yoy) with a pick-up in loan growth, a recovery in wealth management, and a surge in trading income. The good results demonstrate resiliency. DBS and OCBC provide attractive 2025 dividend yields of 6.8% and 6.3% respectively. Our top pick is OCBC (Target: S$18.10) due to the potential to deploy surplus capital to generate inorganic growth. BUY DBS (Target: S$40.70). Maintain OVERWEIGHT.
- Leonard Law
Lucror Analytics - Morning Views Asia
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. To request full and unrestricted access to Lucror’s research and analytics platform, please visit
- Ceilica Su Rui
- Johnny Yum Chung Man
- Roy Chen Chengzhi
- Tham Mun Hon
Greater China Daily: Monday, May 13, 2024
KEY HIGHLIGHTS Economics Inflation CPI grew 0.3% yoy in Apr 24, above market expectations of 0.2% yoy and marking the third consecutive month of increase. PPI inflation came in at -2.5% yoy, up 0.3ppt, extending a one-and-a-half-year stretch of declines. However, global commodity price inflation will soon return to positive territory and is likely to support a further narrowing of China’s PPI decline. A key question is whether manufacturers will be able to pass through the cost increase. M...
Moody's Ratings assigns Aa2 to Harris County Toll Road Authority, TX's...
Moody's Ratings (Moody's) has assigned Aa2 to Harris County Toll Road Authority, TX's (HCTRA) anticipated $950 million Toll Road First Lien Revenue and Refunding Bonds, Series 2024A. Concurrently, Moody's affirmed the Aa1 on HCTRA's $1.15 billion outstanding senior lien revenue bonds and Aa2 on $713...
- Stevanus Juanda
Indofood CBP (ICBP IJ) - 1Q24: Net Profit Up 13.2% yoy, Exceeding Expe...
ICBP reported 1Q24 NPAT of Rp3,224b, up 13.2% yoy. The reported 1Q24 is ahead of expectations. ICBP has not raised prices thus far in 2024, but lower raw material costs will help to expand the margin earned. In 1Q24, domestic volume rose 3% while overseas volume rose 6%. 1Q24 EBIT margin was 24.7%, higher than the 19-21% guidance. A risk that ICBP faces is the depreciation of the rupiah that could impact its foreign debt going forward. Maintain BUY with a target price of Rp13,300.
- Paula Ruth
Erajaya Swasembada (ERAA IJ) - 1Q24: Net Profit Up 8% yoy; Cellular Ph...
NPAT grew 8% yoy, in line with our and consensus expectations. Cellular phones and tablets (82% of ERAA’s total revenue) booked revenue growth of 13% yoy and gross profit growth of 10% yoy. ERAA had 2,095 stores (+13% yoy, +2% qoq) in 1Q24. Net profit growth could improve gradually after the more aggressive store network expansion in the last few years. Maintain BUY with a target price of Rp520.
- Dan Salmon
- Hendri Effendi
- Paula Ruth
- Stevanus Juanda
Indonesia Daily - Monday, May 13, 2024
Erajaya Swasembada (ERAA IJ/BUY/Rp410/Target: Rp520): 1Q24: Net profit up 8% yoy; cellular phone and tablet gross profit up 10% yoy. Maintain BUY. Indofood CBP (ICBP IJ/BUY/Rp10,775/Target: Rp13,300): 1Q24: Net profit up 13.2% yoy, exceeding expectations. TRADERS’ CORNER XL Axiata (EXCL IJ): Technical BUY Merdeka Copper Gold (MDKA IJ): Technical BUY
- Lynn Song
- Rob Carnell
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