In this report, we have summarised what we read from consumer companies’ 2023 results, the 2024 outlook and recent updates. We think companies: a) with overseas expansion or turnaround prospects, b) that have upside potential of improving operating efficiency, c) that will benefit from near-term catalysts (eg event-driven), and d) have increasing dividend payout will outperform. Anta, CR Beer, CTGDF, Galaxy, Haidilao, Haier, Midea and Shenzhou are our most preferred stocks. Maintain OVERWEIGHT.
We expect CPALL to report 1Q24 earnings of Bt4.85b, up 17.6% yoy, driven by top-line increase, gross profit margin improvement and lower interest expenses. We project 2024 net profit to grow 16.6% yoy on the back of positive SSS growth and margin increase from both its convenience stores business and its subsidiary companies. Maintain BUY. Target price: Bt79.00.
GREATER CHINA Update Sino Biopharmaceutical (1177 HK/BUY/HK$2.83/Target: HK$3.80): Enters into strategic partnership with Boehringer Ingelheim. MALAYSIA Initiate Coverage Alpha IVF (ALPHA MK/BUY/RM0.33/Target: RM0.40): Initiate coverage on Alpha IVF with a BUY call. Alpha IVF offers industry-leading success rates, which are expected to be replicated across its exciting regional expansion. SINGAPORE Sector Banking: Higher for slightly longer. THAILAND Update CP ALL (CPALL TB/BUY/Bt56.00/Target...
Given the stabilising revenue growth and abundant cash on hand, mega-cap internet companies have been focusing on offering generous shareholder returns. For 2024, we expect consumption behaviour to switch to service and experience, which will continue to benefit OTA players. We believe other China internet names will outperform with overseas expansion and SFV players will continue to gain market shares with potential for take rate increases. Maintain MARKET WEIGHT.
GREATER CHINA Strategy Alpha Picks: April Conviction Calls: Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. INDONESIA Strategy Alpha Picks: Outperformance In Mar 24 and 1Q24: Our picks are ACES, BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, and AKRA. MALAYSIA Strategy Alpha Picks: Expanding The Variety Of Events Bets: Our Alpha Picks trounced the KLCI in Mar 24. Apr 24 picks: GENM, Inari, Mah Sing, MrDIY, MY...
Alpha Picks: Expanding The Variety Of Events Bets Our Alpha Picks regained momentum and resoundingly outperformed the FBMKLCI in Mar 24 (+9.9% vs -1.0%), led by our concentrated bets on property and construction picks. However, these sectors’ outperformances should moderate, and we strategise our Alpha Picks to capitalise on a wider variety of anticipated events/themes. Apr 24 picks: GENM, Inari, Mah Sing, MrDIY, MYEG, RGB, Suncon and VSI. New additions are MYEG and VSI, replacing EcoWorld and M...
The sequential uptick in Mar 24’s GGR, which surpassed our and the street’s estimates, implies a sustained and resilient gaming demand after the CNY holiday. Notably, this marks another milestone as the industry’s GGR peaked at MOP19.5b after the reopening, marginally above Oct 23’s level. We are confident on the industry’s growth momentum. May 24 Golden Week is a potential catalyst for the sector. Maintain OVERWEIGHT. Top pick: Galaxy Entertainment (27 HK).
Thai operators witnessed a notable uptick in growth as industry mobile ARPU reverted to growth after more than three years. EBITDA also bounced higher led by TRUE, setting the stage for 9-11% growth in FY24. Guided capex also suggests moderating capex intensity which is key driver of ROIC upside. The outlook is turning more optimistic than before, validated by our recent visit of the two telcos.
Banking On Stronger Private Project Flows Suncon is set to deliver record-high earnings in 2024, underpinned by its robust orderbook of RM5.3b as of end-23 as well as potential margin recovery. We also believe the group is in pole position to exceed its RM3.0b replenishment target on the back of the strong project pipeline from both the public and private segments. Maintain BUY. Target price: RM3.33.
Clinches Its Third Data Centre Worth RM748m Sunway Construction Group (Suncon) announced that its subsidiary had on 21 Mar 24 entered a Project Services Request (PSR) with a USbased multinational technology company for the construction and completion of a data centre located in Selangor. The contract value is RM747.8m, inclusive of withholding taxes, sales and service tax and other taxes.
We ran our Asia Telco tour last week. This time we met 12 companies in 3 countries (Korea, Japan, Thailand). Telco share prices in all 3 of these countries have been pretty strong recently as telcos continue to benefit from generally positive themes: growth, return on capital and shareholder remuneration are all typically improving.
A director at NetEase Inc sold 10,000 shares at 108.200USD and the significance rating of the trade was 100/100. 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 clearly s...
A director at VGI Public Company Ltd bought 900,000 shares at 1.490THB and the significance rating of the trade was 63/100. 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 year...
Overhang Casts Shadow Over Sector With Multi-year Low In Valuations Interest in the sector remains muted despite a decent results season. There appears to be a wait-and-see approach on the subsidy rationalisation implementation and subsequent spillover effect before interest is piqued. The multi-year low in sector valuations reflects this sentiment. A relatively strong US Dollar further clouds sector margin recovery. Maintain MARKET WEIGHT. Our top picks are Fraser & Neave Holdings (F&N), Mr DIY...
Our meetings with the two Thai operators (& NBTC) validate our view of a benign mobile dynamic, supported by improving tourism, and sharp capex reductions. Both operators remain focused on profitable growth. TRUE seems very confident on synergy delivery.
Earnings in 4Q23 were quite weak. Stock under our coverage reported aggregate net profit of Bt678.997m in 2023 (vs our estimate of Bt730.176m), declining 9.5% yoy. The poor earnings were pressured by energy, petrochemical and consumer staples (food), while positive earnings were seen in retail and healthcare. Given the strong international tourists arrival driven by Chinese tourists, we see the services sector (tourism and healthcare) maintaining its momentum.
Mixed Bag Of 4Q23 Earnings; 2024 Outlook Still Resilient 4Q23 results came in mixed, dragged by lower-than-expected earnings from Ekovest, GAQRS, WCT and MRCB. We remain sanguine on the 2024 sector outlook anchored by the imminent rollout of mega projects including MRT3 and Penang LRT. Maintain OVERWEIGHT. Our top picks for the sector remain Gamuda, Suncon, and Ekovest.
Alpha Picks: Focusing On Earnings Momentum Our Alpha Picks underperformed the KLCI in Feb 24 (-0.9% vs 2.5%), partially reversing three consecutive months of strong outperformances, as the handful of quarterly results winners could not offset Ekovest’s fall. For Mar 24, we continue to focus largely on companies with good earnings momentum, driven by factors such as improving inbound tourist arrivals, and an expected surge in domestic consumption. Mar 24 picks: EcoWorld, GENM, Inari, MAHB, Mah Si...
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