KEY HIGHLIGHTS Strategy Alpha Picks: Robust end to 1Q24. Add CSE and LREIT; Remove MINT, CVL and FEH: Our Alpha Picks portfolio rose 6.0% mom in Mar 24 and 13.7% qoq for 1Q24, outperforming the STI by 3.4ppt and 14.2ppt respectively. TRADERS’ CORNER Olam Group (OLG SP): Trading BUY Singapore Tech Engineering (STE SP): Trading BUY
Our Alpha Picks portfolio rose 6.0% mom on an equal-weighted basis, outperforming the STI by a material 3.4ppt. The outperformance was driven by broad-based strength across most of our portfolio with the best showing coming from Riverstone, Yangzijiang Shipbuilding and Singtel. In 1Q24, our Alpha Picks portfolio surged by 13.7% qoq, surpassing the STI by a hefty 14.2ppt qoq. For Apr 24, we add CSE and LREIT while removing MINT, CVL and FEH.
INDONESIA Results Indofood Sukses Makmur (INDF IJ/BUY/Rp6,375/Target: Rp11,000) 4Q23: Ahead of consensus expectation. Merdeka Copper Gold (MDKA IJ/HOLD/Rp2,280/Target: Rp2,500) 4Q23: Bottom line still weak but outlook remains prospective; results below expectations. MALAYSIA Sector Banking Feb 24 loans growth ticks up by 1bp to 5.8%. However, leading growth indicators weaken. Maintain MARKET WEIGHT in the absence of strong earnings catalysts. Update VS Industry (VSI MK/BUY/RM0.88/Target: R...
CSE has completed a proposed share placement at an issue price of S$0.40 (6.6% discount to the last traded price). The net proceeds of S$23.2m will be used to fund synergistic acquisitions in New Zealand, Australia and the US. We view this as a positive move given CSE’s good M&A track record. The enlarged number of shares will lead to an 8-9% dilution to our 2024-26F EPS. After adjusting for the share dilution and re-rating of its PE multiple, our target price is lowered by 2% to S$0.56. Maintai...
GREATER CHINA Strategy Alpha Picks: March Conviction Call: Adding CMB, COLI, CR Beer, Kuaishou and TUL to our BUY list, closing out SELL calls. INDONESIA Strategy Alpha Picks: Significant Outperformance In Feb 24: Our picks are BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Focusing On Earnings Momentum: Our Alpha Picks underperformed the KLCI in Feb 24 (-0.9% vs 2.5%). Mar 24 picks significantly feature companies with good earnings momentum. SINGAPORE...
KEY HIGHLIGHTS Sector Banking: 4Q23 round-up: Slower growth compensated by higher yield. Property Developer: 2023: CLI reported results that were in line with our estimates while CDL did better. While both have positive outlooks, they may be more of a 2H24 story in our view. Results CSE Global (CSE SP/BUY/S$0.425/Target: S$0.570): 2023: Earnings beat expectations; well positioned for stronger 2024. Food Empire (FEH SP/BUY/S$1.43/Target: S$1.69): 2023: Exceeds expectations with record-high di...
CSE's 2023 earnings of S$22.5m (+372% yoy) beat our expectations by 7%, backed by robust revenue growth and margin expansion. Final dividend was maintained, indicating a dividend yield of 6%, which paints a positive company outlook. 2023 orderbook rose 20.9% yoy to a record-high S$730.6m. CSE expects to continue expanding its solution offerings while prioritising cash flow management. Maintain BUY with a 7% lower target price of S$0.57 (S$0.61 previously).
GREATER CHINA Strategy Alpha Picks: February Conviction Calls: We remain hedged, adding COSCO Shipping Holdings and Foxconn Industrial Internet to our BUY list, but include additional SELL calls on Li Auto and Xpeng. INDONESIA Strategy Alpha Picks: Outperformance in Jan 24: Our picks are EXCL, MAPI, BMRI, JSMR, BBNI, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Eyes Also On Results Season Winners: Our Alpha Picks performance again trounced the KLCI in Jan 24 (+9.6% vs +4.0%). Feb 24 pic...
GREATER CHINA Strategy Alpha Picks: January Conviction Calls: We add the potential beneficiaries of the upcoming CNY festival − Galaxy Entertainment and Trip.com − to our BUY list, but include SELL calls on BYD and Geely due to the subsidy reduction. INDONESIA Strategy Alpha Picks: Underperformance in 4Q23 and 2023: Our picks are MAPI, BMRI, JSMR, TLKM, BBNI, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Domestic Event Winners: Our Alpha Picks outperformed the KLCI in Dec 23. Jan 24 pick...
GREATER CHINA Strategy Alpha Picks: December Conviction Calls: We add a mix of turnaround stocks and beneficiaries of policy support to our BUY list − CSPC, HKEX, Lenovo, Longfor, Pinduoduo and Sunny Optical. INDONESIA Strategy Alpha Picks: Underperformance With A 3.7% Return: Our picks are GOTO, BMRI, JSMR, TLKM, BBNI, NCKL, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Still Focusing On Domestic Winners: Our Alpha Picks trounced the FBMKLCI in Nov 23, mostly thanks to Hume’s run-up. De...
A director at CSE Global Ltd bought 2,500,000 shares at 0.435SGD and the significance rating of the trade was 71/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clea...
3Q23 results are in line, with 9M23 revenue of S$534.7m (+32.6% yoy) forming 74.8% of our 2023 estimate. This was due to growths in project revenue from the communications and electrification business segments. Order intake increased 82.9% yoy due to new major contracts in the infrastructure sector and should continue to grow steadily. With a record-high orderbook of S$638m as of end-9M23 and an attractive above-average dividend yield of 6%, maintain BUY and target price of S$0.61.
KEY HIGHLIGHTS Sector Banking: 3Q23 round-up: Building buffers to weather heightened geopolitical uncertainties. Results AEM Holdings (AEM SP/BUY/S$3.34/Target:S$3.63): 9M23: Revenue in line with forecast; recovery expected in late-24. CSE Global (CSE SP/BUY/S$0.435/Target: S$0.61): 3Q23: Results in line; growth backed by strong orderbook. First Resources (FR SP/BUY/S$1.43/Target: S$1.65): 3Q23: Results slightly below expectation on lower-than-expected sales volume. This was mainly due to sh...
Poor investor sentiment in Oct 23 drove our Alpha Picks portfolio into negative territory; however, it nevertheless beat the STI by 0.1ppt on a market cap-weighted basis. As a result, our portfolio has outperformed the STI 18 out of past 20 months. For Nov 23, we add SIE, ST, FEH, FEHT AND FRKN, while removing SEA, KEP and CLAS.
KEY HIGHLIGHTS Strategy Alpha Picks: Adding MPM And RHP, Removing DELFI, LHN and YZJ: Our Alpha Picks portfolio outperformed for Sep 23, beating the STI by 4.7ppt. SEA Ltd, Bumitama and ComfortDelgro were the key outperformers. TRADERS’ CORNER Singapore Telecommunications (ST SP): Trading BUY Frencken Group (FRKN SP): Trading BUY
Our Alpha Picks portfolio overcame weak investor sentiment in Sep 23, beating the STI by 4.7ppt on a market cap-weighted basis and 0.4ppt on an equal-weighted basis, outperforming the STI in 17 out of the past 19 months. For Oct 23, we add MPM as we forecast higher utilisation rates, and RHP for near-term drilling upside potential. We remove DELFI and LHN due to a lack of near-term catalysts, and YZJ as we expect a quiet period for new orders.
On a market cap-weighted basis, the STI outperformed our Alpha Picks by 0.3ppt, which was helped by our industrial stock picks. On a price-weighted and market-cap weighted basis, however, our portfolio significantly underperformed due to Sea Ltd. We note that our Alpha Picks portfolio has nevertheless beaten the STI in 16 out of the past 18 months. For Sep 23, due to favourable tailwinds for its data centre segment, we add MINT while removing RFMD from our Alpha Picks portfolio.
GREATER CHINA Sector Automobile: Weekly: EV sales up 38% yoy and 9% mom in 1-6 August, in line with estimates. Maintain UNDERWEIGHT. Top BUYs: BYD, CATL and Li Auto. Results Alibaba Group (9988 HK/BUY/HK$94.30/Target: HK$133.00): 1QFY24: Strong beat on all levels after restructuring. Hysan Development (14 HK/BUY/HK$17.56/Target: HK$26.18): 1H23: Results distorted by AEI; competitiveness of retail portfolio enhanced. INDONESIA Results United Tractors (UNTR IJ/HOLD/Rp27,600/Target: Rp28,000):2Q23...
KEY HIGHLIGHTS Results City Developments (CIT SP/BUY/S$6.99/Target: S$8.00): 1H23: Strong EBITDA growth overshadowed by financing costs and one-off items. CSE Global (CSE SP/BUY/S$0.47/Target: S$0.61): 1H23: Results above expectations; record orderbook to drive better 2H23. Genting Singapore (GENS SP/BUY/S$0.92/Target: S$1.25): 2Q23: Within expectations. We remain optimistic on further earnings recovery in 2H23. Maintain BUY. Prime US REIT (PRIME SP/BUY/US$0.196/Target: US$0.59): 1H23: Closi...
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