reports
- Damon Shen
- Jieqi Liu
China Overseas Property Holdings (2669 HK): Clarifying growth targets ...
Amid worries over its ambiguous growth target, COPH has updated its target to a 15- 20% CAGR in the company’s major business indicators. Management has also confirmed that they will review the dividend policy with the aim of steadily raising the payout ratio, which was 31% in 2023. This is a positive move which will improve investors’ sentiment, but the market will be eyeing the execution. Maintain our earnings forecasts. Maintain BUY with an unchanged target price of HK$5.60.
- Damon Shen
- Jieqi Liu
China Property: Property transactions pull back in April; rising risks...
New-home sales in 30 cities contracted further in the second week of April. Secondhand home sales in Beijing/Shanghai/Guangzhou/Shenzhen also modestly pulled back mom in Apr 24. The rising risks of Vanke may worsen the sentiment towards quasi-SOEs and POEs. Maintain MARKET WEIGHT on China’s property sector and prefer SOEs for their defensiveness. We await the 1Q politburo meeting for possible policy changes.
- Roy Chen Chengzhi
China Aviation: Airlines’ Mar 24 operation data was slightly weaker th...
Mar 24 overall pax loads of the three airlines stood at 101-106% of pre-pandemic levels, slightly missing our projected 102-108% and representing some retracement from Feb 24’s 107-111% levels. Overall pax load factors of the three airlines were 0.8- 2.6ppt below pre-pandemic levels in Mar 24, indicating an overcapacity situation for the sector. We expect the three airlines to record positive profits in 2024. Maintain MARKET WEIGHT on airlines for their 1Q24 earnings turnaround prospect.
- Malaysia Research Team
Malaysia Daily - Tuesday, April 16, 2024
KEY HIG HLIGH TS Sector Update Plantation – Malaysia Page 2 Mar 24: Palm oil exports came in stronger, leading to inventory levels being lower than market expectations. Small-Mid Cap Highlights NationGate Holdings (NATGATE MK/BUY/RM1.60/Target: RM1.93) Page 4 On track for a growth spurt in 2024; new prospects could surprise positively. TRADERS’ CORNER Page 7 Petronas Chemicals Group (PCHEM MK): Technical BUY Oppstar (OPPSTAR MK): Technical BUY
- Stevanus Juanda
Consumer – Cocoa Price Spikes Accompanied By Increases In Sugar And Co...
The movement of commodity prices indicates a spike in cocoa prices and an about 20% increase in sugar and coffee prices. This could negatively impact MYOR as the commodities together make up 36% of MYOR’s input costs. In 2024, we prefer retailers to consumer companies as retailers could offer higher NPAT growth (17.8% vs 4.5%). We suggest investors focus on names that can deliver high earnings growth. Maintain OVERWEIGHT. Our picks: ACES, CMRY and MAPI. We downgrade MYOR to HOLD. • Spike in coco...
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Roy Chen Chengzhi
Greater China Daily: Tuesday, April 16, 2024
KEY HIGHLIGHTS Sector Aviation Airlines’ Mar 24 operation data was slightly weaker than we expected. Maintain MARKET WEIGHT with Air China being our top pick. Property Property transactions pull back in April; rising risks of Vanke worsen sentiment. Update China Overseas Property Holdings (2669 HK/BUY/HK$4.05/Target: HK$5.60) Clarifying growth targets for 2024-26. TRADERS’ CORNER China Railway Construction Corporation (1186 HK): Trading Buy range: HK$5.05-5.12 China Unicom (Hong Kong...
- Stevanus Juanda
Ace Hardware Indonesia (ACES IJ) - Potential 23.7% And 20.1% NPAT Grow...
ACES could record a potential 23.7%/20.1% growth in 2024/25 on the back of: a) 10-15 net stores opening in 2024/25, b) SSSG growth of 7%, c) operating leverage caused by higher sales growth, and d) net margin expansion from 10.03% in 2023 to 11.0%/11.7% in 2024/25. ACES will manage the unexpected increase in operating expenses and taxes related to its free float in 2024. Maintain BUY with a target price of Rp1,200.
- Maskun Ramli
- Stevanus Juanda
- Damon Shen
- Desmond Chong Chee Wai
- Jacquelyn Yow Hui Li
- Jieqi Liu
- Jonathan Koh
- Leow Huey Chuen
- Roy Chen Chengzhi
- Stevanus Juanda
Regional Morning Notes - Tuesday, April 16, 2024
GREATER CHINA Sector Aviation: Airlines’ Mar 24 operation data was slightly weaker than we expected. Maintain MARKET WEIGHT with Air China being our top pick. Property: Property transactions pull back in April; rising risks of Vanke worsen sentiment. Update China Overseas Property Holdings (2669 HK/BUY/HK$4.05/Target: HK$5.60): Clarifying growth targets for 2024-26. INDONESIA Update Ace Hardware Indonesia (ACES IJ/BUY/Rp950/Target: Rp1,200): Potential 23.7% and 20.1% NPAT growth in 2024 and 202...
- Jonathan Koh
- Jonathan Koh
Singapore Banking - 1Q24 Results Preview: Softer NIM But Resilient Ass...
The steep decline in 3M HIBOR could shave off 4-6bp from NIM in 1Q24 as Hong Kong dollar-denominated loans accounted for 11% and 13% of total loans respectively for DBS and OCBC. Singapore banks are expected to deliver steady net profits of S$2,486m for DBS (-3% yoy but +10% qoq) and S$1,824m for OCBC (-3% yoy but +12% qoq) in 1Q24, supported by resilient asset quality. Maintain OVERWEIGHT. Our top picks are DBS (BUY/Target: S$43.25) followed by OCBC (BUY/Target: S$18.15).
- Adrian Loh Tzum Yung
- Singapore Research Team
Singapore Strategy - The Impact Of Escalating Middle East Tensions: A ...
While Middle East tensions have escalated in the past 72 hours, we believe that the situation remains fluid. Oil prices remain the key worry and could negatively impact Asian growth and thus Singapore’s open economy should it escalate past US$100/bbl. In our view, aviation stocks should be able to pass on any oil price related increases, while near-term sentiment for the upstream and offshore marine sector should remain positive. An overall risk-off sentiment will likely pervade the markets in t...
V03 VENTURE CORPORATION LIMITED
U96 SEMBCORP INDUSTRIES LTD.
BN2 VALUETRONICS HOLDINGS
C52 COMFORTDELGRO CORPORATION LIMITED
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
SATS SP SATS LTD.
CDREIT CDL HOSPITALITY TRUSTS
FEHT FAR EAST HOSPITALITY TRUST
BAL BUMITAMA AGRI LTD
MINT MAPLETREE INDUSTRIAL TRUST
FEH FOOD EMPIRE HOLDINGS LTD
FRKN FRENCKEN GROUP LTD
CLI CAPITALAND INVESTMENT LTD
STM SEATRIUM LTD
- Vincent Khoo Boo Aik
Strategy - Seeking Temporary Shelter
We Expect Malaysia Equities To Modestly React To Iran’s Retaliation Attack Against Israel Over The Weekend We expect Malaysia equities to modestly react to Iran’s retaliation attack (reportedly launching 300 missile and drones) against Israel over the weekend. While Iran’s attack should have limited effect on global equities (given the limited attack and modest damage infliction, and noting that the major indices were already sold-down last Friday ahead of Iran’s attack), we expect investors to ...
- Keith Wee Teck Keong
Banking - Digital Banks Ramping Up Deposit Competition?
Digital Banks Ramping Up Deposit Competition? As the five digital banks prepare to commence operations in the coming months, we anticipate a focus on deposit acquisition, potentially impacting sector NIM slightly. Sector valuations have risen to a historical mean P/B of 1.10x, which appears fair against forecasted ROE of 10% and earnings growth of only 6% vs our KLCI earnings growth assumption of 11%. We maintain our MARKET WEIGHT recommendation on the sector. CIMB remains our preferred choice.
- Malaysia Research Team
Malaysia Daily - Monday, April 15, 2024
KEY HIG HLIGH TS Sector Update Banking – Malaysia Page 2 The operational commencement of the various new digital banks could keep overall deposit pricing elevated. Maintain MARKET WEIGHT given lack of fresh earnings catalysts. UOBKH Highlights Strategy: Seeking Temporary Shelter Page 4 We expect Malaysia equities to modestly react to Iran’s retaliation attack against Israel over the weekend. TRADERS’ CORNER Page 5 Dufu Technology Corp (DUFU MK): Technical BUY EG Industries (EG MK): Technical BUY
- Johnny Yum Chung Man
Zhejiang Shuanghuan Driveline Co (002472 CH): 4Q23: Results in line; b...
Shuanghuan’s 4Q23 results are in line with our estimates and preliminary results, although the revenue was slightly below due to a weaker-than-expected EV gear business. In 2024, growth of the EV gear business should stabilise, but the high growth period is likely over, while the overseas business and development of the newlyacquired civil gear business will be crucial for Shuanghuan to find a new growth driver. Maintain BUY but cut target price to Rmb27.60.
- Carol Dou Xiao Qin
- Sunny Chen
China Healthcare: ICL -- Recent policies may cloud revenue growth in 2...
China’s ICL market sees deepening reform of medical services pricing and heightened regulation amid the anti-corruption campaign. We expect these policies to slow ICL players’ 2024 revenue growth, but will gradually accelerate market consolidation and benefit leading players that operate compliantly. Leading players like Kingmed’s and Dian’s significant scale effects and improving service/product mix will also help offset margin pressure. Maintain MARKET WEIGHT.
- Ceilica Su Rui
- Tham Mun Hon
China Economics: Trade -- Exports drop 7.5% and imports fall 1.9%.
March trade data came in below expectations due to a high base, with exports dropping 7.5% yoy and imports falling 1.9% yoy, leading to a narrowed trade surplus of US$58.6b. Exports data showed fluctuations in the first quarter; however, we expect the figures to stabilise in the coming months given the recovery of global manufacturing PMI. The weaker imports data shows that domestic demand recovery remains patchy and would benefit from continued policy support.
- Ceilica Su Rui
- Tham Mun Hon
China Economics: Money Supply -- Slower-than-expected credit expansion...
March M1 money supply growth edged down to 1.1% yoy, while M2 money supply growth dropped to 8.3% yoy, in line with slower credit growth as new bank loans came in below expectations at Rmb3.09t. In addition, the growth of outstanding bank loans and TSF fell to 9.6% yoy and 8.7% yoy respectively. The weak credit data suggests that loan demand could be weak, and China needs a combination of monetary easing and fiscal expansion to support a sustained recovery.
- Carol Dou Xiao Qin
- Ceilica Su Rui
- Greater China Research Team
- Johnny Yum Chung Man
- Sunny Chen
- Tham Mun Hon
Greater China Daily: Monday, April 15, 2024
KEY HIGHLIGHTS Economics Money Supply Slower-than-expected credit expansion. Trade Exports drop 7.5% and imports fall 1.9%. Sector Healthcare ICL: Recent policies may cloud revenue growth in 2024; accelerating market consolidation to benefit leading players. Results Zhejiang Shuanghuan Driveline Co (002472 CH/BUY/Rmb21.60/Target: Rmb27.60) 4Q23: Results in line; but slowdown in EV gear business is apparent. HSI AND HS TECH INDEX OUTLOOK
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.