TRUE's core profit for 3Q24 is projected to soar 295% yoy and 19% qoq, underpinned by better cost control, resulting in higher gross profit margin and lower SG&A-to-sales. Revenue from the mobile business should be flat both yoy and qoq due to fewer prepaid subscribers, as a result of the impact of the flood and rainy season. However, ARPU of both mobile and FBB continues to see a positive trend. Re-initiate coverage with BUY and a target price of Bt13.00.
GREATER CHINA Economics Money Supply: Generally below market expectations. Trade: Trade surplus narrows on weaker exports growth. Strategy China Construction And Property: Key beneficiaries of improved local government finances and an enhanced destocking policy. Sector Logistics: The logistics sector may stand to benefit should China successfully bolster its domestic consumption through fiscal stimulus. Upgrade to OVERWEIGHT with JDL as our top pick. Initiate Coverage JD Logistics Inc (2618 HK/B...
We adjust our model following an encouraging management NDR in NY, Boston and London, the main change being cutting our capex forecasts. We lift our price target to THB 18 (from THB 15). TRUE’s shares have been very strong YTD, but we still think the stock is not fully reflecting the medium-term expansion in FCF likely as synergies are delivered in a benign 2-player market. TRUE remains one of our top picks in Global EM Telco.
Following similar efforts in Europe and LatAm we are launching coverage on the HY Telcos & Towers in EMEA & Africa. New names under coverage include Helios (also initiated on equity, pt GBp140), Axian Telecom and Liquid Intelligent. We also address IHS Towers (pt cut to US$ 6), VEON and Helios’ bonds.
GREATER CHINA Strategy Alpha Picks: September Conviction Calls: We expect an improving operating performance among selected companies in September, and add AIA, COLI, Desay SV, Galaxy Entertainment, Meituan, Ping An and TUL to our BUY list and add Li Auto as a SELL. INDONESIA Strategy Alpha Picks: Trailing The JCI’s Strong Performance In Aug 24: Our picks are ICBP, TOWR, BBNI, BMRI, BBRI, EXCL, CTRA, BBTN, CMRY, SIDO and JSMR. MALAYSIA Strategy Alpha Picks: Adapting To A Bipolar Market: Our Al...
Thai operators delivered good margins uplift again, and TRUE upgraded guidance. After turning the corner in Q4, Thai mobile growth sustained in the 4% range on prepaid strength. With the outlook now positive , we stay bullish on the two with TRUE staying on as one of our top pick in EM Telcos.
KEY HIGHLIGHTS Strategy Alpha Picks: Strong beat; add STM and remove CENT, MPM and FEHT from our portfolio. Our Alpha Picks portfolio rose 0.8% mom in Aug 24 on an equal-weighted basis, beating the STI by 1.2ppt. TRADERS' CORNER Yangzijiang Shipbuilding (YZJSGD SP): Trading BUY AEM Holdings (AEM SP): Trading BUY
Our Alpha Picks portfolio had a solid month in August, rising 0.8% mom on an equal-weighted basis, beating the STI by 1.2ppt. The outperformance was driven by CENT, MINT and FEHT, while MPM, VMS and CVL underperformed. Our Alpha Picks portfolio has now outperformed the STI in seven out of the past eight months. For Sep 24, we add STM while removing CENT, MPM and FEHT.
Singtel held its Investor Day today. Overall tone was more positive relative to last year as the core is beginning to bear fruits from its cost-out initiatives in addition to the clear capex and shareholder remuneration pathway as echoed by its ST28 strategy. The stock remains one of our top picks despite the recent rally as we continue to see good value.
After Powell’s Jackson Hole speech on 23 August, we see a turning point starting with a US Fed rate cut in Sep 24 and lower rates heading into 2025. In the Singapore market, REITs and the property sector should benefit, as should highly-geared companies and those looking to recycle capital. Our current forecasts have incorporated lower NIMs for banks which we believe are protected by their high dividend yields.
Following strong Q1 figures, and ahead of their investor day, we look at the near-term outlook for the shares. When the company first announced the Value Realisation Dividend, our initial response was to be underwhelmed. We now realise this was too hasty. We have changed our mind, and this note runs through why. We see Singtel rising fairly quickly to S$3.75 to S$4. Recommendation remains Buy, pt S$4.6.
GREATER CHINA Economics Economic Activity Another month of lacklustre growth. Sector Automobile Weekly: PEV market share tops record 53% on increased subsidies. Maintain MARKET WEIGHT. Top BUYs: CATL, Geely and Desay SV. Top SELLs: XPeng and Nexteer. Results Alibaba Group (9988 HK/BUY/HK$76.40/Target: HK$95.00) 1QFY25: Solid cloud re...
Singtel reported higher 1QFY25 underlying net profit (+5.6% yoy), driven by better margins from the core businesses and ongoing cost optimisation efforts. Optus outperformed from price uplifts while Singtel Singapore posted better margins from cost-cutting initiatives. NCS booked higher order wins while the digital infraco segment was weighed down by investment costs. Backed by a decent dividend yield of 5.5% and an improving outlook, we maintain BUY with the same target price of S$3.58.
KEY HIGHLIGHTS Results ComfortDelGro Corporation (CD SP/HOLD/S$1.42/Target: S$1.56): 2Q24: Strong quarter; in line, boosted by A2B and UK business. Singapore Telecommunications (ST SP/BUY/S$3.02/Target: S$3.58): 1QFY25: Strong results as margins expand; on track to exceed FY25 guidance. United Hampshire US REIT (UHU SP/BUY/US$0.43/Target: US$0.62): 1H24: New leases provide higher occupancy and rental uplift. Update Singapore Airlines (SIA SP/SELL/S$6.12/Target: S$5.71): Jul 24 operational da...
Singtel started its financial year on a strong footing as core mobile remained steady while profitability improved for both core (Singapore and Australia) and NCS. Headline operating profits (+27%) were also ahead of the upper end of high-single to low double digit FY25 guidance.
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