GREATER CHINA Economics Money Supply Weak demand for transactional funds and medium- to long-term loans. Results Foxconn Industrial Internet (601138 CH/BUY/Rmb20.78/Target: Rmb30.00) 2Q24: Solid progress in AI business; margin misses due to product mix changes. Sino Biopharmaceutical (1177 HK/BUY/HK$2.95/Target: HK$4.00) 1H24: Results beat; expects double-digit revenue and earnings growth in 2024. INDONESIA Update In...
GREATER CHINA Sector Aviation: Airlines Sep 23 operating data: pax load performance below expectations; overcapacity issue remains. Maintain UNDERWEIGHT. Gaming: Marketing feedback: Be selective; eyes on cost management amid intensified competition. Maintain MARKET WEIGHT. Initiate Coverage Ningbo Tuopu Group Co (601689 CH/BUY/Rmb66.49/Target: Rmb105.00): Leading intelligent lightweight chassis solution provider in China. Initiate coverage with BUY. Target price: Rmb105.00. Results Fuyao Glass I...
GREATER CHINA Sector Property: Higher funding costs weighing on property prices; accelerated talent inflow offers downside protection. INDONESIA Sector Coal: Potential 40% decline in 2023 NPAT; share prices might have reflected fundamentals. Upgrade to MARKET WEIGHT. MALAYSIA Results Yinson (YNS MK/BUY/RM2.55/Target: RM4.05): 1QFY24: Despite setbacks in recognising FPSO Anna Nery rates, overall projects remain on track. Concerns on non-O&G capex should also be fairly reviewed against what the ...
GREATER CHINA Economics Inflation: Headline inflation lower; core holds steady. Money Supply: Liquidity remains ample, but households delevered. Sector Automobile: Weekly: April car sales beat; further recovery in the first week of May. Maintain UNDERWEIGHT. Top BUYs: BYD, Li Auto and CATL. Internet: Cloud industry development facilitated by recent AIGC breakthrough. Results JD.com (9618 HK/BUY/HK$135.00/Target: HK$216.00): 1Q23: Earnings beat; soft 2Q23 top-line growth. INDONESIA Sector Proper...
GREATER CHINA Sector Property: Sustainability of sales recovery remains to be seen; expecting more equity financing proposals from SOEs. INDONESIA Results Bank Tabungan Pensiunan Nasional Syariah (BTPS IJ/BUY/Rp2,490/Target: Rp3,200): 2022: Missed market expectations due to write-offs. MALAYSIA Results Mr D.I.Y. Group (MRDIY MK/BUY/RM1.75/Target: RM2.15): 4Q22: Results were broadly within expectations as a price revision exercise offset normalising revenue per store. Maintain BUY. SINGAPORE S...
GREATER CHINA Strategy Alpha Picks: February Conviction Calls: Though near-term risks remain, the indices are set to rebound as investor sentiments strengthen on better policy newsflow. Add JD.com and Xinyi Solar to our BUY list. INDONESIA Strategy Alpha Picks: Starting 2022 With Outperformance: Our picks: UNVR, SIDO, BMRI, TLKM, KLBF, ROTI, and BBNI. MALAYSIA Strategy Alpha Picks: Embracing The High Beta Picks: While our Jan 22 Alpha Picks underperformed, we expect good returns in February. F...
Creador plans to raise around US$140m via selling 2.4% of MR DIY. The stock has done exceptionally well since listing, which we had covered earlier, links below. In this note, we will run the deal through our ECM framework and talk about updates since the IPO. We have covered the IPO in our previous notes: Mr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia Mr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition Mr D.I.Y. Pre-IPO - Peer Comparison - Small St...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Budget Malaysia 2021: Steering Out Of Recession The significantly expansionary Budget 2021 is market neutral. Despite a 38% surge in development expenditures to a record high, construction stocks’ reaction were only mildly positive, perhaps reflecting scepticism of the pace of mega projects’ rollouts. There is positive read on glove producers (no windfall tax), BAT (measures to combat contraband) and NFOs (no duty or fee hike). Our top picks continue to be reopening plays, trade diversion benefi...
4Q20 Earnings Could Be Equally Robust Amid Conditional MCO Headwinds 3Q20 was a largely normalised quarter in terms of earnings, with minimal pent-up demand recognised. The outperformance of non-urban stores against urban area stores supports Mr. DIY’s aggressive store roll-out plan. 4Q20 earnings could be equally robust amid conditional MCO headwinds on: a) 4Q being a seasonally strong quarter; b) a higher store count; and c) demand remaining highly resilient. Maintain BUY with higher target pr...
Overall, the peer comparison analysis reaffirms our bullish view of Mr DIY. Its dominant market share is well ahead of any home improvement competitors in Malaysia. In comparison to other leaders in respective markets, Mr DIY enjoys a wide moat whereas the latter group has more competitors to deal with. The dominant market share also allows Mr DIY to ride the home improvement industry tailwind and continue to capture a larger share in the next few years as competitors will have to play catch up....
MR. D.I.Y. (MD) is looking to raise US$500m in its upcoming IPO in Malaysia. The company is the largest home improvement retailer in Malaysia with a market share of about 25.4% in 2018 based on revenue. Growth has been impressive as MD has more than doubled its revenue and store count since 2016. Key operating metrics also show that growth is well supported by fundamentals as SSSG growth has been at a modest 4.6% as of 9M 2019 and value of each transactions have been consistently growing. Tha...
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