We reiterate our long-term positive view that PTTEP will post positive sales volume growth of 3% CAGR during 2023-27 on the back of better contributions from its Erawan G1/61 gas field and major projects including the world’s second-largest LNG Mozambique, as well as the SK410B project, a world-class, large-scale project in 2027. PTTEP, OR and SPRC remain our sector top picks. Maintain BUY. Target price: Bt195.00.
OR posted a net profit of Bt701m in 3Q22, in line with our forecast but below consensus estimate of Bt2.1b. The qoq decline in earnings was mainly due to lower earnings contributions from all business units, including mobility, lifestyle and global businesses. Going forward, we expect core earnings to improve in 4Q22 on the seasonal high in petroleum sales volume and a potentially higher marketing margin. Maintain BUY. Target price: Bt33.00.
Due to the COVID-19 situation in China, the deteriorating global economy and a high base, we now expect automation names to report weak results in 2Q22. New orders growth remained strong, but we see a clear divergence among different products with industrial robots significantly outperforming other machine tools and upstream components. The bright side is that the chip supply shortage is easing which should help relieve the cost pressure. Maintain MARKET WEIGHT.
AT: Oesterreichische Post - Q4 21 in line, muted outlook wording (neutral) AT: OMV - Borealis declined the binding offer of EuroChem for the acquisition of its fertilizer business (neutral) AT: OMV - OMV is considering building a waste sorting plant in Germany (neutral) CZ: Komercni Banka, Erste Group - Central bank to increase counter-cyclical capital buffer to 2.5% from April 22 (negative) HR: Hrvatski Telekom - Dividend proposal od HRK 8.00 per share (neutral) HR: Valamar Riviera ...
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....
AT: AMAG - Strong Q2 results as indicated in prelease and FY guidance hike (neutral) AT: Atrium - H1 results miss expectations on lower top-line (negative) AT: Frequentis - Frequentis gets order for three tactical control radar communication equipment (neutral) AT: PORR - ISS assigned C+ ESG rating which implies prime status in the sector (neutral) AT: Verbund - Q2 EBITDA and net in line, guidance range up (positive) CZ: Moneta Money Bank - Q2 net profit at CZK 833 mn, slilghtly up ...
Our survey of regulations around the globe indicates a transition from blanket restriction to a bank-by-bank assessment in regulating dividend policy in 2021. It is not a question of whether restrictions of dividends will be eased, but a question of when. Assuming MAS does not interfere with banks’ dividend policy, we expect DBS (BUY/Target: S$26.75) and OCBC (BUY/Target: S$13.48) to provide dividend yields of 4.3% and 5% for 2021F and 5.2% and 5.6% for 2022F respectively. Maintain OVERWEIGHT.
KEY HIGHLIGHTS Strategy Alpha Picks: Adding Yangzijiang & Reshuffling Mid Cap Picks: Our portfolio rose 1.2% mom in Aug 20, outperforming the FSSTI’s gain of 0.1% mom as more than half of our portfolio delivered gains of 4-12% mom. Sector Banks – Regional: ASEAN banks monthly. TRADERS’ CORNER China Aviation Oil (CAO SP): Trading Buy Hongkong Land Holdings (HKL SP): Trading Buy
NEWS SUMMARY: ACS, ARCELOR MITTAL, CAF, CAIXABANK, FERROVIAL, GRUPO CATALANA OCCIDENTE, MEDIASET ESPAÑA, MELIà HOTELS, TALGO. MARKETS YESTERDAY AND TODAY Germany drags down Europe The poor 2Q’20 GDP data in Germany, which could augur negative surprises in the periphery, led to profit taking in the rest of the European indices, with drops of more than -3%. In the Euro STOXX, almost all the sectors were in the red, led by Banks and Insurance, whereas Travel & Leisure rose (+1.3%; after the ...
Petronas Plans For 21% Capex Cuts, But We Think This May Not Be Enough Petronas’ 1Q20 results are beginning to reflect low prices and COVID-19-induced demand. While it strives to protect local capex, the capex/opex cut plans of 21%/12% (suggesting ~RM17b savings) and US$6b bond proceeds are insufficient to protect against a perfect storm of challenges. As Petronas had been slow to implement cuts, we think contract deferrals are likely to increase sector earnings risk despite an oil price recov...
To inform our analysis into finding the next value ideas in this current market environment, we started by examining the sectors that outperformed the S&P 500 Index following the 2008 financial crisis (recovery started on March 2, 2009). The data shows six sectors (out of the total 11) that have consistently outperformed the S&P 500 Index in the five years after the recovery. We have narrowed down to three names (one European and two US) that are worth buying at current levels. The Edge View......
Turnover climbs 16% y/yIn its recently released unaudited FY’19 results, MOBIL grew its turnover 16% y/y to ₦192 billion, while its after-tax earnings declined 5% y/y to ₦9 billion. Despite the impressive growth in FY’19 turnover, gross profit came in flat at ₦16.6 billion, as gross margin worsened to 9% (FY’18: 10%)— highlighting the lean margins in the downstream space. Meanwhile, rental income from the company’s real estate property dropped 7% y/y to ₦8.0 billion, bringing FY’19 opera...
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