UOB KAYHIAN

Singapore Telecommunications (ST SP)
Proxy To Regional Economic Recovery And Reopening

Singtel plans to improve on its ROIC to high single digits by FY25 from 5% in FY22. Proceeds from the group’s asset recycling initiative would be utilised for incremental 5G capex in Australia and current growth engines. The return of international travel has lifted international roaming revenue while both NCS and the group’s data centres plan to expand and ramp up operations. Singtel’s regional associates face a gradual recovery as economies reopen. Maintain BUY with a DCF-based target price of S$2.90.

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Top Glove Corporation
Tough times remain ahead

■ FY8/22 core net profit of RM465m (-94.1%) beat estimates, as we consider recently revealed RM229m inventory write-down for FY22 as non-core item.
■ We expect TOPG to post a 90% yoy decline in FY23F core net profit, owing to our view of sustained weakness in both ASPs and sales volume.
■ TP is lowered to RM0.50 (22x CY24F P/E). Reiterate Reduce.

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MAYBANK KIM ENG

Total Access Communication (DTAC TB)
Macroeconomic improvement to support 3Q performance

3Q22E revenue growth likely to accelerate: BUY
After three quarters of no growth, DTAC’s core service revenue finally grew 0.9% QoQ in 2Q22. We expect QoQ revenue growth to accelerate to 1.8% in 3Q22E on the net addition of 420k subscribers, supported by economic recovery, rising tourist arrivals and stable data prices. We reiterate BUY on DTAC with an unchanged TP of THB48.60. DTAC is slated to report its 3Q result on 21 October.

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Srinanaporn Marketing (SNNP TB)
Strong sales prompts earnings revisions

Revising up earnings forecasts and TP to THB21.20
We are revising up our FY22 and FY23 earnings forecasts by 2% and 5% to reflect stronger-than-expected sales growth in 3Q22. Both domestic and overseas sales are likely to show healthy growth due to the recovery in consumption, successful new product (NPD) launches including Jele Chewy and expansion of the distribution channel. Its new factory in Vietnam
should provide growth opportunities from next year onwards. We roll forward valuations to FY23E, resulting in a higher DCF-based TP (7.3% WACC 7.3% and 3% growth) of THB21.20 from THB18.80. Maintain BUY.

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 Marco Polo Marine (MPM)

Marco Polo Marine Ltd / MPM ($0.039, up 0.001) a reputable regional
integrated marine logistics company, announced that it will build, own and operate a new Commissioning Service Operation Vessel (CSOV) to meet the rising demand for support vessels required to service the booming off shore windfarm industry in Asia. When completed in 1Q2024, the vessel will also be the first CSOV to be designed in Asia. The Group will be funding the construction of the vessel with its existing resources and borrowings from financial institutions.

MPM is capitalized at $138 million and trades at 39x FY 22 PE and 1.1x price to book. While the prospects look very promising for MPM due to the strong prospects of the renewables and off shore wind farm vessel sector, we also note that on a year to date basis, MPM’s share price is up a robust 45%, way above the Singapore market’s 4-5% gain and its high valuations also likely reflects the strong prospects ahead.