CGS CIMB

Property Devt & Invt
Slow end to 2022

■ Private residential transactions were lower qoq and yoy in Dec 2022, due to the absence of new launches; home sales declined 45% yoy in 2022.
■ We reiterate our 2023F price growth projections of 0-3% for home prices and 7k-8k for sales volume.
■ We stay sector Overweight in view of the inexpensive valuations. Our sector top picks: CIT, CLI and UOL.

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Singapore Airlines
Time to pocket share price gains

■ Downgrade from Add to Hold as the share price has re-rated 16.5% over the past three months on optimism over China’s reopening on 8 Jan 2023.
■ Maintain our TP at S$5.97, still based on mean CY23F P/BV of 0.9x.

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CGS CIMB

Nanofilm Technologies Int'l Ltd
Holding for possible re-rating in FY24F

■ We cut FY22F revenue and net profit forecasts as production was affected by China’s abolishment of its zero-Covid policy in Dec 2022, in our view.
■ FY24F would be a key re-rating year for Nanofilm if its various initiatives take off (Vietnam plant expansion, two JV potential, i.e. ApexTech and Sydrogen).
■ We cut our FY22-24F EPS forecasts by 13.9-16.1%. Roll over to FY24F; TP raised slightly to S$1.39.

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Venture Corporation (VMS SP)
Outlook For Customers Remains Promising; Expect Resilient Growth

We expect VMS to report a robust 2022 earnings growth of 17% yoy (S$364m) and we think our 4Q22 earnings estimate of S$92m (-3% yoy/-5% qoq) is conservative. The majority of VMS’ customers, which are US-listed MNCs, have continued to guide for healthy growth in their latest outlook statements. VMS’ increased frequency of share buybacks after it reported its 3Q22 results is also a positive signal for the stock.
Maintain BUY and target price of S$20.06. 

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Healthcare – Malaysia
Compelling Catalysts Few And Far Between

Maintain MARKET WEIGHT as prospects do not appear especially compelling aside from palatable valuations. But we like KPJ as our top pick for the sector for its efforts to divest of its long-standing loss-making regional operations coupled with mainstay operations turning for the better. Aside from longing for government pharmaceutical contract terms to be revised, possible revisions to healthcare allocations under the new Budget are unlikely to shift investor sentiment significantly.

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TISCO Financial Group (TISCO TB)
4Q22: Results Miss, But Strong Earnings Outlook Ahead

TISCO posted a 4Q22 net profit of Bt1.8b (+0.8% yoy, +2% qoq). The results were below our and consensus expectations by 13% and 5%, owing to higher-than-expected provisioning. Nevertheless, TISCO is well-prepared for the growth phase. We expect earnings to grow at an 8% CAGR over 2022-24. Maintain BUY. Target price: Bt121.00.

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