GREATER CHINA Strategy Property Weakening sales in China has raised hopes of policy support in July; rebound in HIBOR will test the strength of recovery in Hong Kong property sales. INDONESIA Update Bank Mandiri (BMRI IJ/BUY/Rp5,025/Target: Rp6,000) 5M25: Steady earnings amid NIM pressure. MALAYSIA Sector Oil & Gas ...
With the MAS’ upcoming S$5b EQDP expected to boost mid-cap liquidity, we screened for stocks meeting a high liquidity threshold (ADTV >S$2m) and having solid fundamentals. Key stocks that screened well include CENT, CD, FR, IFAST, NETLINK, RFMD, RSTON, SSG, SIE, SPOST and UMS. Lowering the ADTV bar adds nine names with HLA and FEH being the most favoured in this group.
For 1Q25, the sector’s muted 1.7% yoy earnings growth was within expectations, underpinned by strong contributions from Singtel’s regional associates and better overall cost discipline. Moving into 2Q25, we expect similar sector earnings growth, largely driven by Singtel and NetLink. We like Singtel for its regional exposure, Starhub as the main beneficiary of market consolidation and NetLink for its defensive earnings, supported by the sector’s attractive dividend yields. Maintain OVERWEIGHT.
GREATER CHINA Economics Economic Activity Generally weaker activities in April. Update Yuexiu Property (123 HK/NOT RATED/HK$4.57) Takeaways from meeting with Yuexiu Property. INDONESIA Update Aneka Tambang (ANTM IJ/BUY/Rp2,720/Target: Rp3,300) Raising earnings forecast on strong gold price momentum. MALAYSIA Results Affin Bank (ABANK MK/SELL/RM2.72/Target: RM...
Netlink posted a lower FY25 revenue (-1.0% yoy), EBITDA (-1.5% yoy) and PATMI (-7.6% yoy) that fell below our expectations, dragged by lower interconnection prices and decreased ancillary project revenue. Despite the lower prices, FY25 RAB revenue was only down slightly (-0.5% yoy) as overall connections continue to grow. With stable revenue streams and operating cash flows, we continue to like Netlink as a highyielding, safe haven stock. Maintain BUY with the same target price of S$0.98.
GREATER CHINA Strategy China And Hong Kong Property & Hong Kong Landlord Tariffs curtail US rate cuts, thereby hindering the recovery of Hong Kong property and tourism; Maintain OVERWEIGHT on China property. INDONESIA Strategy Alpha Picks: Outperform In Mar 25 Remove BBNI, BBRI, ASII, JSMR and KLBF; add BBCA, ICBP, ERAA and BUKA. MALAYSIA Update Pekat Group (PEKAT MK/BUY/RM1.08/Target: RM1.45) Good earnings visibility over 2025...
The selloff driven by the US’ unprecedented and perplexing tariff plans has liberated many investors of profits this year. Given the fluidity of market conditions, we highlight a number of domestic-focused stocks such as CENT, CD, DFI, HLA, PANU, PROP, RFMD, SSG and SIE as well as Singapore-focused REITS such as CDLHT, FEHT, FCT, KREIT, LREIT and PREIT. In addition, the MAS’ equity market review should inject much needed liquidity in 2H25. We lower our STI target to 3,720 (previously 4,115).
GREATER CHINA Results China Mengniu Dairy (2319 HK/BUY/HK$19.50/Target: HK$23.60) 2024: Results in line with profit warning; operating margin beat; targeting low single digit revenue growth for 2025. China Merchants Bank (3968 HK/HOLD/HK$45.90/Target: HK$49.00) 2024: Improving fundamentals but valuation is no longer attractive; downgrade to HOLD. China Overseas Property Holdings (2669 HK/BUY/HK$5.47/Target: HK$6.80) ...
For 4Q24, the sector’s 18% yoy earnings growth was within expectations, driven by Singtel’s regional associates, strong performance from the enterprise businesses and better overall cost discipline. We expect decent earnings growth for 1Q25, backed by strong earnings visibility, cost-saving initiatives and robust Enterprise business outlook. We like Singtel for its regional exposure and value-unlocking initiatives, Starhub’s attractive yield and NetLink’s defensive earnings. Maintain OVERWEIGHT.
KEY HIGHLIGHTS Results NetLink NBN Trust (NETLINK SP/BUY/S$0.85/Target: S$0.98): 3QFY25: Soft results on lower prices and higher operating costs. Update Mapletree Industrial Trust (MINT SP/BUY/S$2.06/Target: S$2.70): Weathering the bumpy ride. TRADERS’ CORNER Yangzijiang Financial Holding (YZJFH SP): Trading BUY Parkway Life Real Estate Investment Trust (PREIT SP): Trading BUY
GREATER CHINA Update Lenovo Group (992 HK/BUY/HK$12.16/Target: HK$14.30) 3QFY25 results preview: Expect solid beat on better-than-expected shipment. INDONESIA Results Indosat (ISAT IJ/BUY/Rp1,625/Target: Rp2,100) 4Q24: EBITDA down 2% yoy, and core NPAT drops 19% yoy. MALAYSIA Sector Plantation Jan 25: End stock remains low due to production...
Netlink posted lower 3QFY25 revenue (-0.8% yoy), EBITDA (-7.6% yoy) and PATMI (- 20.4% yoy), in line with our expectations. The soft performance was largely due to lower interconnection prices and higher operating costs. Despite lower prices, 9MFY25 RAB revenue was stable as overall connections continued to grow. With its stable revenue streams and operating cash flows, we continue to like Netlink as a high-yielding, safehaven stock. Maintain BUY with the same target price of S$0.98.
KEY HIGHLIGHTS Results CapitaLand Integrated Commercial Trust (CICT SP/BUY/S$2.02/Target: S$2.59): 3Q24: Increasing dominance of Singapore’s retail scene. NetLink NBN Trust (NETLINK SP/BUY/S$0.91/Target: S$0.98): 2QFY25: A slight miss as margins compress. Update Wilmar International (WIL SP/HOLD/S$3.13/Target: S$3.00): 4Q24 qoq recovery anticipated, albeit lower yoy. Uncertainties loom with upcoming elections and weak consumer spending recovery in China. TRADERS’ CORNER Propnex (PROP SP): Tra...
GREATER CHINA Strategy Small-Mid Cap Monthly Stronger order visibility into 2025, reiterate BUY on Crystal International and raise target price to HK$5.12. INDONESIA Results Indofood Sukses Makmur (INDF IJ/BUY/Rp7,875/Target: Rp12,000) 3Q24: Ahead of consensus expectation – driven by IFAR. Indofood CBP (ICBP IJ/BUY/Rp12,450/Target: Rp15,000) 3Q24: Strong volume growth; core NPAT in line wit...
espite higher 2QFY25 revenue (+2.5% yoy), Netlink posted lower EBITDA (-5.1% yoy) and PATMI (-7.4% yoy), slightly below our expectations. The softer-than-expected bottom line results were largely due to higher operating costs and one-off expenses. However, with its stable revenue streams and operating cash flows, we continue to like Netlink as a high-yielding, safe-haven stock. Maintain BUY with the same target price of S$0.98.
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.
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