reports
- Johnny Yum Chung Man
ZTE Corporation (763 HK): Stronger Overseas Growth In 1Q24 Offsets Slo...
ZTE registered a mild 3.7% yoy net profit growth in 1Q24, in line with estimates. The growth was primarily driven by the overseas, G&C and consumer businesses, coupled with excellent control over operating expenses. Going forward, we expect ZTE to continue benefitting from China’s cloud infrastructure buildout and digitalisation efforts, but near-term headwinds from declining telco capex and geopolitical tensions will likely weigh on its valuation. Maintain BUY and trim target price to HK$21.00.
- Tanaporn Visaruthaphong
Thanachart Capital (TCAP TB) - 1Q24 Results Preview: Expect A yoy And ...
We expect TCAP to post a 1Q24 net profit of Bt1,739m (+10% yoy, +21% qoq). The qoq increase can be attributed to a rise in non-II. We expect TTB’s decent 1Q24 results to be the key driver of non-II’s augmentation. However, we anticipate a deterioration in asset quality in 1Q24, pressured by THANI’s high credit cost situation. TCAP’s valuation is not cheap. There is no exciting growth catalyst in the near term. Maintain HOLD. Target price: Bt53.00.
- Benjaphol Suthwanish
- Tanaporn Visaruthaphong
Thai Oil (TOP TB) - 1Q24 Net Profit Driven By Strong GRM
We estimate 1Q24 net profit at Bt5.3b, up qoq and yoy, driven by higher GRM and benzene spreads. Consequently, we expect TOP to achieve a market GIM of US$11.1/bbl, showing a qoq uptick. Although we expect the core profit trend for 2Q24 to decrease qoq, positive factors from the US’ driving season will likely lead to a recovery in GRM towards the latter part of 2Q24. Maintain BUY. Target price: Bt68.00.
- Benjaphol Suthwanish
- Tanaporn Visaruthaphong
PTT Exploration & Production (PTTEP TB) - 1Q24 Net Profit In Line With...
In 1Q24, PTTEP disclosed a net profit of Bt18.7b, up 2% qoq, in line with our expectations. 2Q24 core profit should remain strong. We expect a qoq and yoy increase, driven by increased ASP and sales volume. PTTEP is poised to allocate additional investment to the Yadana project in Myanmar. It is prepared to extend the contract if there is potential for the development of gas production fields. Maintain BUY. Target price: Bt200.00.
- Kasemsun Koonnara
AP Thailand (AP TB) - 1Q24 Preview: Expect A yoy And qoq Decline In Ea...
We anticipate a net profit of Bt1.0b for AP in 1Q24 (-31% yoy, -23% qoq), pressured by decreased presales and the absence of new condos for transfers. However, in 2Q24, presales are expected to improve with many projects planned for launch. 2Q24 earnings would be driven by newly-completed condo projects. We remain optimistic about AP as the market leader because it is more resilient to multiple headwinds in the residential market than its peers. Maintain BUY. Target price: Bt13.50
- Benjaphol Suthwanish
- Kasemsun Koonnara
- Tanaporn Visaruthaphong
Thailand Daily - Friday, April 26, 2024
KEY HIGHLIGHTS Update AP Thailand (AP TB/BUY/Bt10.50/Target: Bt13.50) 1Q24 preview: Expect a yoy and qoq decline in earnings; look ahead to 2Q24. PTT Exploration & Production (PTTEP TB/BUY/Bt157.00/Target: Bt200.00) 1Q24: Net profit in line with our expectations. Thai Oil PCL (TOP TB/BUY/Bt57.50/Target: Bt68.00) 1Q24: Net profit driven by strong GRM. Thanachart Capital (TCAP ...
- Johnny Yum Chung Man
Xiaomi Corp (1810 HK): Stronger confidence in EV business after Invest...
We attended Xiaomi’s investor day and visited its EV production base in Beijing. During the event, the company disclosed encouraging developments for the EV business, including: a) robust locked orders of 75,723 units, b) full-year shipment target of 100,000 units, c) better-than-expected gross margins of 5-10%, and d) accelerated production ramp-up. Maintain BUY and adjust target price to HK$21.00.
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
Shanxi Xinghuacun Fenjiu (600809 CH): 2023: Results in line; accelerat...
Fenjiu reported in-line 2023 results. Revenue contributed by the core markets of southof- the-Yangtze river region grew 30% yoy in 2023, reflecting a good nationwide expansion progress. In 2023, the Qinghua series contributed 46% of sales with subpremium Qinghua 20 contributing 65-70%. Looking ahead, we expect the Qinghua series’ growth to accelerate on a growing brand momentum and dominance of midrange baijiu in the banquets market. Maintain BUY. Trim target price to Rmb321.00.
- Carol Dou Xiao Qin
- Sunny Chen
Aier Eye Hospital Group (300015 CH): 2023: Satisfactory results; weak ...
2023 results were satisfactory but 1Q24 revenue growth was significantly slower than our estimate. We believe weak economic conditions may continue to put pressure on revenue growth. Aier continues to pursue service excellence by offering high valueadded services and products to attract patients and stay ahead of competition. Maintain BUY with a lower target price of Rmb15.00 to factor in the possible impact of the relatively weak economic conditions and intensifying competition.
- Nurul Nazira Binti Abdullah
Pavilion REIT (PREIT MK) - 1Q24: Within Expectations
Pavilion REIT (PREIT MK/BUY/RM1.30/Target: RM1.47) 1Q24: Within Expectations In line. Pavilion REIT (PREIT) reported 1Q24 revenue of RM218m (+5% qoq, +40% yoy) and net profit of RM83.2m (+2% qoq, +19% yoy), accounting for 25-26% of our and consensus full-year estimates. The improvement in the results was mainly driven by the injection of Pavilion Bukit Jalil (PBJ) into the portfolio. Excluding PBJ, 1Q24 revenue grew 7% qoq and 7% yoy, while NPI jumped 2% qoq and 7% yoy thanks to higher contribut...
- Desmond Chong Chee Wai
Vitrox Corporation (VITRO MK) - 1Q24: Below Expectations, But On The M...
1Q24: Below Expectations, But On The Mend For A Stronger 2H24 While Vitrox still registered a soft 1Q24 on its fifth consecutive yoy sales contraction, the negative quantum has narrowed further. Meanwhile, its bill-to-book ratio stayed at 1.0x parity. Vitrox’s efforts in continuous innovation of new products, coupled with its market expansion activities into the high growth segment, are paving the way for the group’s recovery in 2H24. We believe the near-term positive prospects have been priced ...
- Malaysia Research Team
Malaysia Daily - Friday, April 26, 2024
KEY HIG HLIGH TS Company Results Vitrox Corporation (VITRO MK/HOLD/RM7.62/Target: RM8.10) Page 2 1Q24: Vitrox registered a soft 1Q24 on its fifth consecutive yoy sales contraction but the negative quantum has narrowed further. Downgrade to HOLD. UOBKH Highlights Pavilion REIT (PREIT MK/BUY/RM1.30/Target: RM1.47) Page 5 1Q24: Within expectations. TRADERS’ CORNER Page 6 Eco World International (ECWI MK): Technical BUY Federal International Holdings (FIHB MK): Technical BUY
- Carol Dou Xiao Qin
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
Greater China Daily: Friday, April 26, 2024
KEY HIGHLIGHTS Results Aier Eye Hospital Group (300015 CH/BUY/Rmb12.24/Target: Rmb15.00) 2023 results were satisfactory but 1Q24 revenue growth was significantly slower than our estimate. We believe weak economic conditions may continue to put pressure on revenue growth. Aier continues to pursue service excellence by offering high value-added services and products to attract patients and stay ahead of competition. Maintain BUY with a lower target price of Rmb15.00 to factor in the possible i...
- Adrian Loh Tzum Yung
Keppel (KEP SP) - 1HFY24: Resilient Growth In Consumption At Suburban ...
FCT’s suburban malls saw an influx of shopper traffic and tenant sales increased 4.3% yoy in 2QFY24, which exceeded pre-pandemic levels by 20%. Positive rental reversion picked up to 7.5% in 1HFY24 (FY23: 4.7%). NEX would be enhanced by: a) decanting existing car park space for conversion into 60,000sf of commercial space, and b) rightsizing the tenant mix to reduce the reliance on anchor tenants. FCT provides a defensive FY25 distribution yield of 5.5%. Maintain BUY. Target price: S$2.71.
- Jonathan Koh
Frasers Centrepoint Trust (FCT SP) - 1HFY24: Resilient Growth In Consu...
FCT’s suburban malls saw an influx of shopper traffic and tenant sales increased 4.3% yoy in 2QFY24, which exceeded pre-pandemic levels by 20%. Positive rental reversion picked up to 7.5% in 1HFY24 (FY23: 4.7%). NEX would be enhanced by: a) decanting existing car park space for conversion into 60,000sf of commercial space, and b) rightsizing the tenant mix to reduce the reliance on anchor tenants. FCT provides a defensive FY25 distribution yield of 5.5%. Maintain BUY. Target price: S$2.71.
- Adrian Loh Tzum Yung
- Jonathan Koh
Singapore Daily: Friday, April 26, 2024
KEY HIGHLIGHTS Results Frasers Centrepoint Trust (FCT SP/BUY/S$2.17/Target: S$2.71): 1HFY24: Resilient growth in consumption at suburban malls. Update Keppel (KEP SP/BUY/S$6.86/Target: S$8.89): Steady as she goes. TRADERS’ CORNER iFAST Corp (IFAST SP): Trading SELL AEM Holdings (AEM SP): Trading SELL
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Carol Dou Xiao Qin
- Desmond Chong Chee Wai
- Jo Yee Ng
- Johnny Yum Chung Man
- Jonathan Koh
- Kasemsun Koonnara
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Sunny Chen
- Tanaporn Visaruthaphong
Regional Morning Meeting Notes: Friday, April 26, 2024
GREATER CHINA Results Aier Eye Hospital Group (300015 CH/BUY/Rmb12.24/Target: Rmb15.00) 2023: Satisfactory results; weak economic conditions may cloud 2024 growth visibility. Shanxi Xinghuacun Fenjiu (600809 CH/BUY/Rmb245.58/Target: Rmb321.00) 2023: Results in line; accelerating nationwide expansion. Update Xiaomi Corp (1810 HK/BUY/HK$16.60/Target: HK$21.00) Stronger confidence in EV business after Investor Day and factory visit. INDONESIA Results Unilev...
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
TOP THAI OIL PUBLIC CO. LTD.
300015 AIER EYE HOSPITAL GROUP CO. LTD. CLASS A
UNVR PT UNILEVER INDONESIA TBK
PTTEP PTT EXPLORATION & PRODUCTION PLC
BN4 KEPPEL CORPORATION LIMITED
AP AP THAILAND
TCAP THANACHART CAPITAL PCL
01810 XIAOMI CORP. CLASS B
VITRO VITROX CORP BHD
- Stevanus Juanda
Unilever Indonesia (UNVR IJ) - 1Q24: Post-boycott Recovery With 1Q24 S...
UNVR’s 1Q24 NPAT rose 3.1% yoy to Rp1,449b, in line with expectations. In 1Q24, UNVR experienced a sales recovery after the boycott in 4Q23, with a 24.4% qoq sales growth in 1Q24. UNVR mentioned that the ice cream business spinoff will develop on a global level. 1Q24 sales declined by 5%, driven by a 4.9% price reduction, but gross margin expanded by 61bp yoy. We expect 2024 NPAT to rise by a mediocre 5.4% yoy. Maintain HOLD with a target price of Rp3,200.
- Maskun Ramli
- Stevanus Juanda
- Johnny Yum Chung Man
Han’s Laser Technology Industry Group (002008 CH): 1Q24 bolstered by i...
Han’s Laser’s 1Q24 reported net profit surged 594% yoy due to a one-off investment gain of Rmb1.05b from the disposal of a subsidiary. Stripping out non-core items, core net profit was below our and market expectations at a Rmb6m loss, due to a margin squeeze and deteriorating product mix. Going forward, we remain cautious on its recovery due to sluggish end demand, as well as sustained pricing pressure on PCB equipment. Maintain HOLD and keep target price at Rmb17.10.
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