The core Xtep brand recorded a high single-digit % yoy growth in retail sell-through in 1Q24, and the growth accelerated to double-digit% in April. With the high-base effect fading away, continuous new product launches, and quick orders from products launched in 1Q24, management expects retail sell-through to achieve double-digit% yoy growth in 2Q24 and 2024. Maintain BUY and target price of HKS7.00.
Han’s Laser’s 4Q23 net profit declined 4% yoy to Rmb188m, below our and the market’s expectations due to higher opex and impairment loss. Revenue was actually better than expected with signs of sustained recovery in high-power laser, PCB and semi equipment seen through 4Q23-1Q24, but the ongoing margin pressure and slow recovery in other business may continue to drag on its earnings recovery in 2024. Maintain HOLD and cut target price to Rmb17.10.
China’s PEV sales grew 21% yoy and 19% wow during the week of 8-14 Apr 24, implying a 46% market share. BYD, Li Auto and XPeng posted in-line sales during the week, while Tesla’s and Zeekr’s sales came in lower than expected due to competition. We expect Zeekr’s sales to recover, based on its better product qualities vs rivals and new model debuts. CATL posted in-line 1Q24 results with core earnings growing 19% yoy. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto, XPeng. Top BUYs: CATL, Desay.
With a more positive guidance on SAF outlook from management, we see rising upside risk to consensus earnings estimates for 2025. We revise up our 2025 earnings forecast by 8%. Our 2025 earnings forecast is still above consensus forecasts by 49%. In terms of share price performance, BCP is still a laggard in the Thai refinery sector with its share price having dropped 1% ytd compared with BSRC (+11% ytd), Star Petroleum (SPRC, +1% ytd) and Thai Oil (TOP, +7% ytd). Maintain BUY. Target price: Bt5...
BBL reported 1Q24 earnings of Bt10.5b (+4% yoy, +19% qoq). The results were in line with our forecasts but below consensus estimates by 5.2%. The credit costs and NPL ratio rose unexpectedly. However, the loan loss coverage ratio remains high to cushion future uncertainties. NIM contracted as expected due to rising funding cost. Maintain HOLD. Target price: Bt155.00.
KEY HIGHLIGHTS Results Bangkok Bank (BBL TB/HOLD/Bt143.50/Target: Bt155.00) 1Q24: Results in line; unexpected rise in credit costs and NPL ratio. Update Bangchak Corporation (BCP TB/BUY/Bt43.75/Target: Bt52.00) Resilient SAF outlook prompts further earnings upgrade.
KEY HIG HLIGH TS Company Update TIME dotCom (TDC MK/BUY/RM5.20/Target: RM6.00) Page 2 Launched free upgrade in fibre home speed to defend and grow its market position in this fast-growing segment. TRADERS’ CORNER Page 5 Citaglobal (CITAGLB MK): Technical BUY Harbour-Link Group (HALG MK): Technical BUY
KEY HIGHLIGHTS Sector Automobile Weekly: PEV sales up 21% yoy/19% wow in the second week of April, in line. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Results Han’s Laser (002008 CH/HOLD/Rmb18.95/Target: Rm17.10) 4Q23: Misses expectations on operating expenses. Margin pressure may continue through 2024. Update Xtep International Holdings (1368 HK/BUY/HK$4.46/Target: HK$7.00) Expect double-digit% yoy growth in retail sell-through for 2Q24 and 2024....
Defending Market Share In The Fibre Business TIME recently launched a free upgrade for fibre home speed. This product positioning, we opine, is aligned with TIME’s strategy of defending and eventually growing its market position in the retail segment. To recap, the retail segment exhibited robust topline growth of 20% yoy in 2023. Separately, TIME is at an exploratory stage to drive earnings via two new RE divisions. The stock offers an attractive near-term dividend yield of 6%. Maintain BUY. Ta...
As of Feb 24, CoF remained elevated. Combined unconsolidated interest expenses of the big four banks increased 44% yoy in 2M24 while NIM contracted by 21bp in 2M24. Based on historical data, tighter liquidity could improve Indonesian banks’ NIM due to more efficient funding usage. Nevertheless, a longer-term, tighter liquidity can lower NIM. The impact could be different for individual banks, depending on the banks’ funding and asset composition. Maintain OVERWEIGHT. Top picks: BBCA and BMRI.
GREATER CHINA Sector Automobile: Weekly: PEV sales up 21% yoy/19% wow in the second week of April, in line. Maintain UNDERWEIGHT. Top SELLs: BYD, Li Auto and XPeng. Top BUYs: CATL and Desay SV. Results Han’s Laser (002008 CH/HOLD/Rmb18.95/Target: Rm17.10): 4Q23: Misses expectations on operating expenses. Margin pressure may continue through 2024. Update Xtep International Holdings (1368 HK/BUY/HK$4.46/Target: HK$7.00): Expect double-digit% yoy growth in retail sell-through for 2Q24 and 2024. IN...
While the higher number of new launches and completed units hitting the Singapore residential market in 2024 and 2025 enables buyers to shop around more, the spectre of persistently higher interest rates, as well as high property taxes, could have a dampening effect on sentiment in the near term. We see limited impact on CDL given its diversified income stream while PropNex could be protected by its high 6.5% dividend yield. Maintain OVERWEIGHT.
SC’s adjusted EBITDA missed the street’s estimates, impacted by its ongoing renovations and a lower hold rate. Management expects the renovations to continue to disrupt operations throughout the year, especially during the summer holidays. We foresee pressure on SC’s EBITDA margin due to its ongoing facility upgrades, the industry’s persistently intensive promotional activities, and uncertainty in China’s economic recovery. Maintain BUY with a lower target price of HK$26.80. 1Q24 results belo...
JD’s top-line growth is expected to be 6% yoy for 1Q24, while GMV growth is projected be exceed China’s 1Q24 retail growth of 4.7% yoy. In 2024, JD will have a clean base after reorganisation and targets to achieve high single-digit normalised GMV growth. Meanwhile, margin is expected to remain stable yoy due to ramped up investment in three major strategies including content ecosystem, open ecosystem and on-demand services. Maintain BUY. Target price: HK$127.00 (US$34.00).
Anta’s 1Q24 sales momentum was in line with management’s expectation, with sales 20% higher than the company’s internal targets in the second half of March, although the retail sales yoy growth rates were slightly lower than annual targets, mainly due to the high base. Management reiterates the full-year sales targets, with more proactive new product launches in the coming quarters. Maintain BUY and target price of HK$109.60.
Crystal’s differentiated co-creation model and cross-category product offerings remain its key advantages as a leading garment supplier. We expect EPS to grow at an 11% CAGR in 2024-26 on market share gains from sportswear brand customers, thanks to speed-to-market deliveries, vertical integration into the fabric supply and enhanced production efficiency. Initiate coverage with BUY. Target price: HK$4.42.
Scaling New Heights Gamuda is set to deliver a record-high bottom line in FY24, backed by higher earnings from both the construction and property development divisions. The outlook for the construction division remains resilient, underpinned by outstanding orderbook of RM24.1b and promising replenishment prospects. Meanwhile, the property division is expected to record stronger earnings on lumpy recognition of unbilled sales and higher new property sales. Maintain BUY. Target price: RM5.88.
1Q24: Slightly Above Expectations IGB REIT showed resilience in 1Q24 thanks to strong Chinese New Year spending. Though 2Q24 may be weaker pcal spending due to expected EPF Account 3 withdrawals). Upgrade to BUY with a higher target price of RM1.88 (from RM1.80).
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