buy sell hold 2021



Frencken Group (FRKN SP)
1Q22: Impacted By Mounting Cost Pressures And Automobile Disruptions

Frencken’s weak 1Q22 earnings of S$12.8m (-12.6% yoy, +1.7% qoq) was impacted by rising cost pressures and disruptions in the automobile industry.

We believe the global automobile industry will continue to be plagued by an extended period of slow production due to the semiconductor chip shortage and prolonged Russia-Ukraine conflict, which would negatively impact Frencken’s automobile segment. We have lowered our target price to S$1.63 (from S$2.06). Maintain BUY.


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Carlsberg Brewery Malaysia (CAB MK)
1Q22: Within Expectations As Malaysia Sees A Resurgent Rebound

Carlsberg’s sales performance was lifted by a successful CNY campaign coinciding with eased pandemic restrictions.

Raised ASPs and economies of scale more than offset commercial spend as margins improved amid concerns of elevated commodities prices. We continue to like Carlsberg for its recovery-led earnings growth, its ability to manoeuvre high commodities prices and attractive valuations.

Maintain BUY and target price of RM24.70.


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Farm Fresh (FFB MK)
4QFY22: Cessation Of Sales Masks Decent Performance

Sales were flattish due to the cessation of sales to third parties by Farm Fresh’s Australia farm. Margins were lifted by ASP revisions as Farm Fresh delivered on its earnings. Farm Fresh has indicated its willingness to defend its margins amid spiralling input costs. We continue to like Farm Fresh for its exciting earnings growth and attractive valuations that could re-rate further. Maintain BUY with a target price of


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KLCCP Stapled Group (KLCCSS MK)
1Q22: Slightly Impacted By Dampened Consumer Sentiment

KLCCSS’ results were largely within our expectations, with 1Q22 core net profit of RM161m accounting for 23% of our full-year estimate. The office segment remained resilient, mitigating the weaker performances of the retail and hotel segments. Expect earnings to recover on the back of the recovery in the retail and hotel segments as things go back to normal. Maintain BUY and target price of RM7.60. 


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Grand Venture Technology Ltd
Growth is still the objective

■ We hosted GVT for a post 1Q22 business update call on Tuesday, 24 May
2022 where management explained the margin decline for 1Q22.

■ We cut our FY22-24F EPS forecasts as inflationary cost pressures increase.
Cost management will be the differentiator as demand remains robust.

■ We continue to like GVT for its growth orientation. We reiterate our Add call
with a lowered S$1.29 TP (lower target P/E multiple and FY23F EPS cut).

City Developments
Recovery momentum from hotel segment

■ Hotels performed best in 1Q, residential to benefit from new launches in 2Q.
■ CIT is unlocking the value of its stake in Golden Mile via a S$700m collective
■ We reiterate our Add rating with a TP of S$8.97. 

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