KEY HIG HLIGH TS Company Update TIME dotCom (TDC MK/BUY/RM5.20/Target: RM6.00) Page 2 Launched free upgrade in fibre home speed to defend and grow its market position in this fast-growing segment. TRADERS’ CORNER Page 5 Citaglobal (CITAGLB MK): Technical BUY Harbour-Link Group (HALG MK): Technical BUY
Defending Market Share In The Fibre Business TIME recently launched a free upgrade for fibre home speed. This product positioning, we opine, is aligned with TIME’s strategy of defending and eventually growing its market position in the retail segment. To recap, the retail segment exhibited robust topline growth of 20% yoy in 2023. Separately, TIME is at an exploratory stage to drive earnings via two new RE divisions. The stock offers an attractive near-term dividend yield of 6%. Maintain BUY. Ta...
GREATER CHINA Sector Automobile: Weekly: PEV sales up 21% yoy/19% wow in the second week of April, in line. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Results Han’s Laser (002008 CH/HOLD/Rmb18.95/Target: Rm17.10): 4Q23: Misses expectations on operating expenses. Margin pressure may continue through 2024. Update Xtep International Holdings (1368 HK/BUY/HK$4.46/Target: HK$7.00): Expect double-digit% yoy growth in retail sell-through for 2Q24 and 2024. IN...
JD’s top-line growth is expected to be 6% yoy for 1Q24, while GMV growth is projected be exceed China’s 1Q24 retail growth of 4.7% yoy. In 2024, JD will have a clean base after reorganisation and targets to achieve high single-digit normalised GMV growth. Meanwhile, margin is expected to remain stable yoy due to ramped up investment in three major strategies including content ecosystem, open ecosystem and on-demand services. Maintain BUY. Target price: HK$127.00 (US$34.00).
KEY HIG HLIGH TS Company Results IGB REIT (IGBREIT MK/BUY/RM1.75/Target: RM1.88) Page 2 1Q24: Slightly above expectations. Upgrade to BUY. We believe IGBREIT offers some resiliency and a high dividend yield of 6-7%, particularly amid the market’s current volatility. Company Update Gamuda (GAM MK/BUY/RM5.16/Target: RM5.88) Page 5 Set to deliver record-high bottom line in FY24 on higher construction and property development earnings. Maintain BUY. TRADERS’ CORNER Page 8 Ancom Nylex (ANCOMNY MK): T...
GREATER CHINA Sector Insurance: Value buy or value trap? Initiate Coverage Crystal International (2232 HK/BUY/HK$3.39/Target: HK$4.42): Well-positioned for market share gains from sportswear brand customers. Update Anta Sports (2020 HK/BUY/HK$81.60/Target: HK$109.60): Satisfactory 1Q24 sales performances; high-quality growth remains intact. JD.com (9618 HK/BUY/HK$98.85/Target: HK$127.00): 1Q24 results preview: Focusing on three core strategies to revitalise user growth. INDONESIA Sector Mining:...
KEY HIG HLIGH TS Initiate Coverage Sime Darby Bhd (SIME MK/BUY/RM2.76/Target: RM3.13) Page 2 A conglomerate giant speeding to the top. Company Results Alpha IVF (ALPHA MK/BUY/RM0.34/Target: RM0.40) Page 5 3QFY24: Results within expectations as sales recovered in tandem with an expected sequential recovery. Alhaya has commenced operations. Maintain BUY. TRADERS’ CORNER Page 8 YLI Holdings (YLI MK): Technical BUY Carimin Petroleum (CARIP MK): Technical BUY
KEY HIG HLIGH TS Sector Update Plantation – Malaysia Page 2 Mar 24: Palm oil exports came in stronger, leading to inventory levels being lower than market expectations. Small-Mid Cap Highlights NationGate Holdings (NATGATE MK/BUY/RM1.60/Target: RM1.93) Page 4 On track for a growth spurt in 2024; new prospects could surprise positively. TRADERS’ CORNER Page 7 Petronas Chemicals Group (PCHEM MK): Technical BUY Oppstar (OPPSTAR MK): Technical BUY
Digital Banks Ramping Up Deposit Competition? As the five digital banks prepare to commence operations in the coming months, we anticipate a focus on deposit acquisition, potentially impacting sector NIM slightly. Sector valuations have risen to a historical mean P/B of 1.10x, which appears fair against forecasted ROE of 10% and earnings growth of only 6% vs our KLCI earnings growth assumption of 11%. We maintain our MARKET WEIGHT recommendation on the sector. CIMB remains our preferred choice.
KEY HIG HLIGH TS Sector Update Banking – Malaysia Page 2 The operational commencement of the various new digital banks could keep overall deposit pricing elevated. Maintain MARKET WEIGHT given lack of fresh earnings catalysts. UOBKH Highlights Strategy: Seeking Temporary Shelter Page 4 We expect Malaysia equities to modestly react to Iran’s retaliation attack against Israel over the weekend. TRADERS’ CORNER Page 5 Dufu Technology Corp (DUFU MK): Technical BUY EG Industries (EG MK): Technical BUY
GREATER CHINA Economics Money Supply: Slower-than-expected credit expansion. Trade: Exports drop 7.5% and imports fall 1.9%. Sector Healthcare: ICL: Recent policies may cloud revenue growth in 2024; accelerating market consolidation to benefit leading players. Results Zhejiang Shuanghuan Driveline Co (002472 CH/BUY/Rmb21.60/Target: Rmb27.60): 4Q23: Results in line; but slowdown in EV gear business is apparent. MALAYSIA Sector Banking: The operational commencement of the various new digital bank...
KEY HIG HLIGH TS Sector Update Banks – Regional Page 2 ASEAN Banks: Quarterly update. Company Update Dialog Group (DLG MK/BUY/RM2.32/Target: RM3.10) Page 6 While enjoying peak storage fundamentals, Dialog will also benefit from sustainably higher offshore activity levels in its Jubail Supply Base. TRADERS’ CORNER Page 9 Perdana Petroleum (PERDANA MK): Technical BUY SFP Tech Holdings (SFPTECH MK): Technical BUY
ASEAN Sector Banks: ASEAN Banks: Quarterly update. GREATER CHINA Economics Inflation: CPI inflation moderates as CNY effects fade. Sector Automobile: Weekly: Raise 2024 auto sales growth to 7.5% on bigger price cuts. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Consumer: Focus on four key theses for the sector. Property: 2023 results wrap-up: Profitability deteriorates as expected; outperformance of CR Land/COLI the main highlight. MALAYSIA Update Dialo...
OVERWEIGHT on Indonesia banks as they offer the highest earnings growth in 2024/25 and benefit from the recent rally in commodity prices. We like Singapore banks for their attractive dividend yields. Our top BUYs are DBS (Target: S$43.25), CIMB (Target: RM7.33), SCB X (Target: Bt130) and BMRI (Target: Rp7,900). We also like OCBC (Target: S$18.15), RHB (Target: RM6.18) and BBNI (Target: Rp6,300) as attractive yield plays.
KEY HIGHLIGHTS Sector Banks ASEAN Banks: Quarterly update. Small/Mid Cap Highlight Mermaid Maritime (MMT SP/NOT RATED/S$0.137) Positioned for growth with orderbook expansion and higher margins. TRADERS’ CORNER AEM Holdings (AEM SP): Trading BUY Thai Beverage (THBEV SP): Trading BUY
Alibaba saw solid consumption momentum in Jan-Feb 24 on its platform and slight moderation in March with its continuous focus on user needs. We expect revenue to grow 6% yoy for 4QFY24, fuelled by better CMR growth. For FY25, Alibaba will continue to focus on user experience and investment in AIDC to foster revenue growth amid a highly competitive environment. Maintain BUY with a lower target price of HK$92.00 (US$92.00).
KEY HIGHLIGHTS Sector IT Hardware AI Hardware: Elevated investment to bolster investor confidence. Maintain OVERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$70.50/Target: HK$92.00) 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability. TRADERS’ CORNER Guangzhou Automobile Group (2238 HK): Trading Buy range: HK$3.48-3.58 China Gas Holdings Limited (384 HK): Trading Buy range: HK$7.90-8.00
GREATER CHINA Sector IT Hardware: AI Hardware: Elevated investment to bolster investor confidence. Maintain OVERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$70.50/Target: HK$92.00): 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability. SINGAPORE Update Marco Polo Marine (MPM SP/BUY/S$0.067/Target:S$0.086): Virtual call takeaways: Thriving on upswing in offshore industry. THAILAND Update Energy Absolute (EA TB/BUY/Bt35.25/Target: Bt70.00): Looking for new growth opportunities fro...
MPM has highlighted the promising future of offshore wind with rising global capacity targets. Average dayrates and utilisation rates are also likely to remain on the uptrend, supported by growing demand and limited vessel supply. We believe this allows MPM to continue securing ship chartering contracts and expanding into new markets, with its fleet and shipyard growth expected to contribute from FY25. Maintain BUY with a target price of S$0.086.
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