GREATER CHINA Sector Property: Channel checks and observations of Shanghai primary market. INDONESIA Update Astra International (ASII IJ/BUY/Rp4,970/Target: Rp6,000): Should be able to cope with intense competition. MALAYSIA Sector Plantation: MPOB’s Oct 24 data showed a slow inventory rebuild due to higher exports and declining production. Results CTOS Digital (CTOS MK/BUY/RM1.14/Target: RM1.51): 3Q24: Results within expectations. While management has revised its internal guidance for 2025, w...
SIA’s 2QFY25 headline net profit of S$290m (-59% yoy, -36% qoq) came in below our guided range of S$360m-460m, due to slightly higher-than-expected operating costs. While pax travel and cargo demand are robust, SIA’s core profitability is likely to stay in an overall moderating trend in FY25-26, as pax and cargo yields remain under pressure amid an increased capacity supply. The speed of Air India’s turnaround is a key wild card. Maintain SELL on SIA, with a slightly lower target price of S$5.72...
KEY HIGHLIGHTS Results Singapore Airlines (SIA SP/SELL/S$6.29/Target: S$5.72) 1HFY25: Earnings miss expectations on slightly higher-than-expected operation costs. UMS Integration (UMSH SP/HOLD/S$1.04/Target:S$0.95) 3Q24: Earnings still below expectations due to slow ramp-up of new customer. Upgrade to HOLD. Update Seatrium (STM SP/BUY/S$1.95/Target: S$2.80) No negative surprises in 3Q with much to look forward to in the next six months. Maintain BUY with a target price of S$2.80. TRADERS' ...
KEY HIGHLIGHTS Update Singapore Airlines (SIA SP/SELL/S$6.50/Target: S$5.83) Aug 24 operational data: Weaker-than-expected pax load factor a sign of increased competition. Maintain SELL. TRADERS' CORNER Singapore Post (SPOST SP): Trading BUY City Developments (CIT SP): Trading BUY
GREATER CHINA Commissioned Report ECARX (ECX US/BUY/US$1.75/Target: US$3.40): Making smart electric cars excellent. Initiate coverage with BUY. Target price: US$3.40. INDONESIA Update XL Axiata (EXCL IJ/BUY/Rp2,320/Target: Rp2,900): Acquisition of ServeCo might increase EXCL’s revenue by 8% in 2025. MALAYSIA Sector Gloves: Further tariff hike announced by US authority on China’s medical-grade gloves beginning 2025-26 is poised to revitalise investors’ sentiment. Maintain OVERWEIGHT. SINGAPORE...
SIA’s pax load factor remained below pre-pandemic levels for the second consecutive month in Aug 24, although pax capacity supply was still marginally below pre-pandemic levels. This is a confirmative sign that SIA is facing increased competition, in our view. We estimate SIA’s upcoming 2QFY25 earnings at S$360m-460m, a sizeable yoy decline from 2QFY24’s S$707m and also likely a qoq fall from 1QFY25’s S$452m. Maintain SELL with a slightly higher target price of S$5.83.
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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.
Summary Cathay Pacific Airways Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Cathay Pacific Airways Ltd (Cathay Pacific) is an international airline company. It provides scheduled air passenger and cargo services to several countries and territories. The company opera...
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...
SIA’s Jul 24 pax load factor dropped to below pre-pandemic levels for the first time since Singapore’s reopening, although pax capacity supply was still slightly below prepandemic levels. Pax load factor also dipped mom despite July typically being a seasonally stronger month than June. The weaker-than-expected pax load factor could be a sign of increasing competition. Downgrade SIA to SELL with a lower target price of S$5.71, based on 1.09x FY25F P/B (pegged to its historical mean).
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...
GREATER CHINA Strategy Alpha Picks: August Conviction Calls We expect stimulus to be announced in August and add COSCO Shipping Ports, Haier Smart Home, and KE Holdings to our BUY list and add SELL call on WuXi Bio, and XPeng. Small-Mid Cap Monthly Reiterate BUY on Crystal amid share price pullback; eyes on interim dividend surprise. Sector Automobile ...
SIA’s 1QFY25 net profit of S$452m (-38.5% yoy, -21.4% qoq) fell within our guided range but at the lower part. Core net profit of S$411m (-24.6% yoy, -6.9% qoq) formed 21.7% of our full-year forecast. SIA’s earnings are set to moderate in FY25-26 but should stay at decent levels above pre-pandemic levels, based on our projection. SIA has underutilised balance sheet strength, which gives it scope for raising its dividend payout ratio. Maintain HOLD on SIA, with a slightly lower target price of S$...
KEY HIGHLIGHTS Sector REITs: S-REITs monthly update (Jul 24). Results Keppel Corp (KEP SP/BUY/S$6.33/Target: S$8.86): 1H24: Strong operating results from infrastructure and connectivity segments. However, legacy O&M assets weigh on the numbers. S$0.15/share dividend declared. Maintain BUY. Singapore Airlines (SIA SP/HOLD/S$6.24/Target: S$6.28): 1QFY25: Results a slight miss due to weaker-than-expected pax and cargo yields. United Overseas Bank (UOB SP/NOT RATED/S$32.35): 2Q24: Building regio...
Summary Marketline's Deutsche Lufthansa AG Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Deutsche Lufthansa AG - Mergers & Acquisitions (M&A), Partnerships & Alliances since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Inv...
KEY HIGHLIGHTS Update Singapore Airlines (SIA SP/HOLD/S$7.09/Target: S$6.43): Jun 24 operation data in line; we expect earnings moderation in 1QFY25. Maintain HOLD. MONTHLY TECHNICAL - INDICES OUTLOOK FTSE Straits Times Index (STI IND): This index is strong and bullish
GREATER CHINA Small/Mid Cap Highlights Crystal International (2232 HK/BUY/HK$3.46/Target: HK$4.76) Takeaways from factory visit: minimal impact from US election. INDONESIA Update Bank Neo Commerce (BBYB IJ/BUY/Rp262/Target: Rp400) To book a net loss in 2Q24; expected to recover in 2H24. MALAYSIA Sector Technology We see room to grow for the sector, backed by an early c...
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