ANALYSTS SAY: Buy, Sell, Hold (5 Dec)

PHILLIP SECURITIES

Thai Beverage PLC
Bounce in beer and property

SINGAPORE | CONSUMER| FY22 RESULTS
 Earnings were above expectations due to higher associate earnings. FY22 revenue and PATMI at 101%/109% of our FY22e forecasts. Associate earnings almost doubled from a
gain on disposal and reversal of write-down on properties held for sale.

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BRC Asia
Earnings ahead, 1H23 to be impacted by “Heighted Safety”

SINGAPORE | INDUSTRIAL | FY22 results
 FY22 net profit was ahead of our expectations at 112% of our FY22e forecasts. Revenue was in line at 99% of FY22e. Earnings were above expectations as higher-than-expected volume moved despite the “Heightened Safety” period imposed.

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PHILLIP SECURITIES

Singapore Banking Monthly
Interest rates climb while loans growth slows

SINGAPORE | BANKING& FINANCE | UPDATE
 November 3M-SORA was up by 41bps MoM to 2.69%. YTD22 3M-SORA is up 87bps.
 Singapore domestic loans grew 2.75% YoY in October, below our estimates, while Hong Kong’s domestic loans declined 2.70% YoY in October. CASA balance stable at 21.1%.

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STRATEGY – SINGAPORE
Alpha Picks: Add SIA And UMSH, Remove FR, CD And YZJSGD

Our Alpha Picks outperformed the STI index in Nov 22, advancing by 8.9% on a marketcap weighted basis vs the STI’s 6.4% gain. For Nov 22, we add SIA and USMH as we expect peak performance in SIA’s upcoming 3QFY23 results and robust revenue growth from USMH. We also take profit on First Resources and YZJ Shipbuilding after their strong performances while removing ComfortDelgro from our portfolio, given compressing margins and the potential loss of its current bus contracts.

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Consumer – China
More Signs Of Reopening; Upbeat On Baijiu Names’ Potential Re-rating Ahead

We see more signs of reopening in China given: a) the central government’s message that prevention and control of the pandemic is entering a new stage, b) local governments’ relaxed policies, and c) media reports of the virus’ less perniciousness. Given baijiu’s high correlation with the macro economy, we are upbeat on baijiu leaders’ potential re-rating ahead thanks to the economic stimulus policies, upcoming peak season in Jan 23 and potential reopening theme. Maintain OVERWEIGHT.

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Uzma (UZMA MK)
Expecting Better Outlook For O&G Maintenance

With a strong financial start in 1QFY23, Uzma is guiding for better contract demand in 2023, especially for certain maintenance works (decommissioning) and green solutions.
Uzma’s O&G earnings delivery remains crucial for the share price to recover sustainably from its all-time low, which has factored in solar project risks, especially on material costs vs returns. We revise our forecasts, with more optimism on 2023 earnings. Maintain BUY with an adjusted target price of RM0.67. 

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