GREATER CHINA Results AAC Technologies (2018 HK/HOLD/ HK$18.46/ Target: HK$17.10): 4Q21: Impacted by margin squeeze and one-off inventory write-offs. Upgrade to HOLD. Geely Auto (175 HK/BUY/HK$11.96/Target: HK$19.00): 2H21: Earnings down 24% yoy, missing estimates. Cut target price to HK$19.00. Kingsoft Corp (3888 HK/BUY/HK$26.85/Target: HK$32.00): 4Q21: Earnings miss; awaiting resumption of Banhao approval to fuel growth. Minth Group (425 HK/BUY/HK$18.18/Target: HK$32.00): 2H21: Net profit fell...
SPH is entering the final stretch of its proposed restructuring as shareholders overwhelmingly approved Cuscaden’s improved offer. SPH shareholders will now choose between cash and cash-plus-units payment options according to their preferences, which may lead to a Mandatory General Offer for SPH REIT.
KEY HIGHLIGHTS Update Sembcorp Marine (SMM SP/BUY/S$0.094/Target: S$0.11): A decent-sized order win to kick off the turnaround story. Singapore Press Holdings (SPH SP/OFFER ACCEPTED/S$2.35/Target:S$2.36/S$2.40): Ding ding ding, we have a winner. TRADERS’ CORNER Venture Corp (VMS SP): Trading Buy iFAST Corp (IFAST SP): Trading Buy
GREATER CHINA Economics Economic Activity: Upside surprise in activity data amid stiffening headwinds. INDONESIA Update Adhi Karya (ADHI IJ/BUY/Rp1,090/Target: Rp1,200): ADCP IPO at premium valuation; ADHI’s two flagship projects to be completed in 2022. Upgrade to BUY. MALAYSIA Update Inari Amertron (INRI MK/BUY/RM4.09/Target: RM4.40): Utilisation across Inari’s key segments is expected to remain solid for FY22. Further earnings-accretive M&As could uplift its market cap for the potential FB...
Cuscaden announced that it had submitted an improved offer with a full cash offer of S$2.36/share or cash-plus-share offer of S$2.40/share for all of SPH’s shares, at a consideration of around S$3.9b. Both options are superior to Keppel’s original cash-plus-share offer of S$2.35/share. Barring any new offer, we recommend shareholders to ACCEPT the highest offer, which is currently Cuscaden’s offer which provides higher consideration and price stability.
KEY HIGHLIGHTS Results First Resources (FR SP/HOLD/S$1.58/Target: S$1.65): 3Q21: Results below our and consensus expectations, dragged by spillover impact from lower ASP contracted during early-21 and higher cost of production. Update Singapore Press Holdings (SPH SP/ACCEPT OFFER/S$2.33/Target: S$2.36/S$2.40): Cuscaden returns with a superior offer. Uni-Asia Group (UAG SP/BUY/S$1.32/Target:S$2.34): Incoming record-breaking 2021 and 2022; too cheap to ignore. TRADERS’ CORNER Frasers Centrepoi...
We believe KEP’s higher offer for SPH of S$2.35 is a compelling one given that it gives SPH’s shareholders a much quicker way to monetise their investments since: a) it has received all regulatory approvals, and b) any competing offer can only occur after KEP’s scheme meeting thus materially delaying any such competing offer. From SPH’s perspective, the revised offer values SPH at a premium and more importantly avoids the scenario where assets are cherry-picked. Thus, we recommend to ACCEPT THE ...
SINGAPORE PRESS HDG. (SG), a company active in the Publishing industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date November 9, 2021, the closing price was SGD 2.16 and its potenti...
GREATER CHINA Strategy Alpha Picks: November Conviction Calls: Growth rebound supported by upbeat earnings news and hopes that peak regulatory risks have passed. Add Li Ning, Tinci Material, Zijin Mining. Swap Yongda Auto for BYD. Sector Internet: Further tightening – key to ensuring healthy development of data infrastructure. Results Beijing Easpring Material Technology (300073 CH/BUY/Rmb86.55/Target: Rmb100.00): 3Q21: Results better than expectations; sustained margins amid rising raw material...
Cuscaden Peak announced that it had submitted a proposal to acquire all of Singapore Press Holdings’ (SPH) shares for S$2.10 fully in cash per share at a consideration of S$3.4b, narrowly edging out Keppel’s original cash-plus-share offer of S$2.099. With SPH’s prized assets on the line, we reckon that a bidding war is imminent. However, barring any new offer, we recommend shareholders to accept the highest offer which is currently Keppel’s offer at S$2.15/share over Cuscaden’s.
KEY HIGHLIGHTS Results Ascott Residence Trust (ART SP/BUY/S$1.06/Target: S$1.20): 3Q21: Steady recovery powered by domestic leisure demand. Update Singapore Press Holdings (SPH SP/ACCEPT OFFER/S$2.12 /Target: S$2.15): Potential bidding war imminent. Wilmar International (WIL SP/BUY/S$4.41/Target: S$6.00): Palm and sugar businesses continue to do well, while China operations show improvement vs 9M21. On track to deliver another record profit for 2021. TRADERS’ CORNER Jardine C&C (JCNC SP): Tr...
GREATER CHINA Sector Property: 2021 Policy Address: Minimal near-term impact from supply policies. Initiate Coverage Niu Technologies (NIU US/BUY/US$24.37/Target: US$40.00): An up-and-coming global 2WEV market. INDONESIA Update Waskita Karya (WSKT IJ/BUY/Rp1,005/Target: Rp1300): Full support from the government. Upgrade to BUY. MALAYSIA Update Yinson (YNS MK/BUY/RM6.18/Target: RM7.30): We now assume two contract wins as a mega Brazil FPSO appears to be back on the negotiation table, although P...
SPH reported a strong set of FY21 results operating profit up 70% yoy while PATMI was strong at S$93m, backed by strong contributions from the PBSA and retail & commercial segments. The transfer of the media segment is expected to be completed in Dec 21 while the EGM for Keppel’s privatisation offer is set to be held in mid-Nov 21. We recommend shareholders to ACCEPT Keppel’s offer at S$2.099/share given the fair valuation of SPH, in our view.
KEY HIGHLIGHTS Results Singapore Press Holdings (SPH SP/ACCEPT OFFER/S$1.98/Target: S$2.10): FY21: Stark rebound, no longer dragged down by the media segment. TRADERS’ CORNER Singapore Telecommunications (ST SP): Trading Buy Wilmar International (WIL SP): Trading Buy
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....
We view KEP’s proposal to acquire SPH’s non-media assets positively as it allows the company to enter new property segments, expand its asset management reach and generate more recurring income. From SPH’s perspective, the offer could be higher, but not by much. A full privatisation offer also avoids the scenario where prime assets are cherry picked. Hence, the recommendation would be to ACCEPT THE OFFER. barring a superior competing offer.
KEY HIGHLIGHTS Strategy Another One Bites The Dust: KEP Proposes To Acquire SPH: We view KEP’s proposal to acquire SPH in a positive light, and believe that SPH shareholders should accept the offer. Results Ascendas REIT (AREIT SP/BUY/S$3.12/Target: S$3.83): 1H21: Kick-starting redevelopment of Science Park I soon. Sheng Siong Group (SSG SP/HOLD/S$1.54/Target: S$1.73): 2Q21: Above expectations; demand to taper off in the quarters ahead. TRADERS’ CORNER Ifast Corp (IFAST SP): Trading Buy Hon...
GREATER CHINA Sector Internet: Navigating rocky regulatory headwinds. Update China Shineway Pharmaceutical (2877 HK/BUY/HK$8.80/Target: HK$11.80): New dividend policy to reward shareholders and attract long-term investors. Sany Heavy Equipment International Holdings (631 HK/BUY/HK$7.87/Target: HK$8.90): Near-term pressure in traditional segments; new growth driver to contribute from 2022 onwards. INDONESIA Sector Property: Wrap up 1H21 marketing sales; maintain OVERWEIGHT. MALAYSIA Update Mala...
SPH’s media restructuring EGM is slated for Aug-Sep 21. The media segment continues to see ad revenue dip while facing challenges on the cost front. Looking beyond, the group’s student accommodation assets are seeing better prospects with the expected return of international students. In developing its asset management capabilities, we opine that a potential spin-off of the student accommodation assets could unlock value. Maintain BUY with a higher SOTP-based target price of S$2.00.
KEY HIGHLIGHTS Results Mapletree Logistics Trust (MLT SP/HOLD/S$2.10/Target: S$2.08): 1QFY22: Slowdown in pace of acquisitions. Update Singapore Press Holdings (SPH SP/BUY/S$1.80/Target: S$2.00): Recovery in sight for UK assets. TRADERS’ CORNER Singapore Exchange (SGX SP): Trading Buy SATS (SATS SP): Trading Sell
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