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ComfortDelGro Corporation (CD SP) Switching To The Green Lane
While incentives and developments for EV adoption have gained momentum, there are still teething issues in the transition to EV taxis, though a longer-term positive could materialise from lower charging costs. On a near-term basis, other government initiatives appear to be beneficial for CD, including the potential change in the financing framework for the Downtown Line. Maintain BUY with a higher target price of S$1.85.
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Plantation – Malaysia Inventory Remains Low As Production Came In Lower Than Expectations
Malaysia’s palm oil stocks fell 1.8% as at end-Feb 21 to 1.3m tonnes on lower production and lower imports while domestic consumption increased mom. Lower palm oil stocks, a delay in soybean harvesting in South America and improved demand in major markets continue to be supportive to prices. Be mindful of the recovery in palm oil production. Brazil’s soybean production is expected to improve despite bad weather conditions. Maintain MARKET WEIGHT.
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DBS VICKERS |
CGS CIMB |
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4Q results review Earnings U-turn
• First positive earnings revision since 2Q19, +2% for FY21F and +3% for FY22F • Boosted by banks and agri products, lowered for shipyards • Earnings to recover back to 97% (ex-prop) of pre-pandemic level by end-2021 • Strongest y-o-y earnings recovery in 2Q21, to taper off and stay positive beyond that
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BRC Asia Ltd Steel looking good
■ Construction activities have returned to c.75% of pre-Covid-19 levels; we expect a further recovery with roll-out of Covid-19 vaccination programmes. ■ BRC has locked in supply for inventory requirements for the rest of FY21F; this should allow the company to uphold healthy GPM of 11%. ■ We believe BRC is on track to achieving S$40m net profit for FY21F. Reiterate Add and TP of S$1.90.
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Check out our compilation of Target Prices
