ANALYSTS SAY: Buy, Sell, Hold (20 Dec)

Del Monte Pacific Limited – Strong growth momentum in the US

• 2Q22 results exceeded expectations. 2Q22 revenue and PATMI at 29%/41% of our FY22 forecasts. Revenue from Americas exceeded expectations.
• US subsidiary DMFI branded retail sales grew 11% YoY, with strong momentum from core vegetable business and shipments in preparation for holiday promotional activity.
• DMPI international sales increased 18% YoY on robust sales of packaged fruit and beverages in US and Europe and S&W packaged pineapple and mixed fruit in North Asia.
• Maintain BUY with a higher TP of S$0.62 from S$0.60. Our FY22e PATMI has been raised slightly by 2% to US$88.2mn, as we increase our sales forecasts for Americas, but lower our sales forecasts for Asia Pacific, in line with lower revenue in 2Q22 from the Philippines, due to a high base from impact of the pandemic in 2Q21.

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Yinson Holdings (YNS MK)
9MFY1/22 results came in
below

Maintain BUY and MYR11.55 TP
9MFY1/22 core results came in below our expectation, on weaker EPCIC, associate profits and higher opex in 3QFY1/22, which led to an 8-22% cut in FY22-23 earnings. That aside, we remain positive on its prospects. Yinson has the best of both worlds: (i) clearest carbon reduction footprint strategy to-date and (ii) strongest FPSO prospects, which it is well-entrenched to capitalise on in this upcycle. Our TP is SOP-based.

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MAYBANK KIM ENG

PHILLIP SECURITIES

Sarawak Oil Palms (SOP MK)
ESG: Building a sustainable
future

Relatively good ESG credentials
We assess SOP’s overall ESG risk factors to be medium as its ESG
credentials appear to be relatively good, with transparent and detailed sustainability disclosures. Its geographical exposure to just Sarawak also
helps limit SOP’s ESG risks relative to peers. Maintain BUY with unchanged TP of MYR5.60 on 13x FY22 PER peg, its 5Y mean. With net gearing at just
3% (end Sept 21), 8x FY22E PER and an unadjusted EV/ha of MYR25,000 (below replacement cost), SOP is undervalued.

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• 2Q22 results exceeded expectations. 2Q22 revenue and PATMI at 29%/41% of our FY22 forecasts. Revenue from Americas exceeded expectations.
• US subsidiary DMFI branded retail sales grew 11% YoY, with strong momentum from core vegetable business and shipments in preparation for holiday promotional activity.
• DMPI international sales increased 18% YoY on robust sales of packaged fruit and beverages in US and Europe and S&W packaged pineapple and mixed fruit in North Asia.
• Maintain BUY with a higher TP of S$0.62 from S$0.60. Our FY22e PATMI has been raised slightly by 2% to US$88.2mn, as we increase our sales forecasts for Americas, but lower our sales forecasts for Asia Pacific, in line with lower revenue in 2Q22 from the Philippines, due to a high base from impact of the pandemic in 2Q21.

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