buy sell hold 2021



Sea (SE US)
1Q23 Results Preview: Expect A Profitable Quarter But Lower qoq Due To Seasonality

We expect 1Q23 results to remain profitable but to drop qoq. The strong operating contribution should come from digital financial services and e-commerce, on the back of a growing loan base and higher commission fees respectively. This would be partially offset by the slowdown in active game user numbers growth and gross
merchandise value growth for Shopee. Maintain BUY and target price of US$94.34 with our expectation that SEA may continue to deliver positive earnings for 2023.

Property – Hong Kong
Prefer Retail Leasing To Property Sales For Stronger Momentum

CCL Index has gone up by 7.4% ytd. In 1Q23, we saw a higher market share from primary home transactions. Besides, the recent price cut (relative to previous rounds) is largely consistent with market price movement. We see limited upside on property prices in 2Q23, as high interest rates remain a key risk. We expect stronger momentum from tourism and retail spending. Maintain MARKET WEIGHT on the
Hong Kong property sector. Top picks: SHKP and Hysan.




Dasin Retail Trust (S$0.138, down 0.6 cents): The Board of Directors (the “Board”) of Dasin Retail Trust Management Pte. Ltd. (the “TrusteeManager”), as trustee-manager of Dasin Retail Trust (the “Trust”), wishes to announce that: as of 1 March 2023, Guangzhou Jiaguang Supermarket Co., Ltd (“Carrefour China”) has ceased operations at the units on basement 2, basement 1, and the first, second and third floors of Ocean Metro Mall which it had leased under the lease agreement dated 19 November 2013 (the “Carrefour Lease”) entered into with Zhongshan Yuanxin Commercial Property Management Co. Ltd, as lessor (the “Zhongshan Yuanxin”).

At $0.138, market cap of Dasin Retail Trust is $115.8mln while it has yet to disclose its FY22 results (had applied to SGX-ST for extension
of time to announce its FY22 results) and it had not paid any distributions in the last twelve months. Given this latest development of its termination with Carrefour China for certain units in Ocean Metro Mall and GOME for certain units in Shiqi Metro Mall, we thus
are expecting a negative knee-jerk reaction to the unit price of Dasin Retail Trust.


1Q23F Hospitality: Leaving Covid in the past

■ We expect CLAS, CDREIT and FEHT’s SRs to post RevPARs above 1Q19 levels, while FEHT’s hotel RevPAR could come in at c.90% of 1Q19 levels.
■ We expect strongest RevPAR growth for CLAS (reopening of Japan/China) and FEHT (government contracts at market rate in 1Q23 vs. 1Q22).
■ Hospitality is our third preferred sector. Our picks for the sector in order of preference are CLAS, FEHT and CDREIT. 


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BHP Group
Short-term jitters vs long-term value

3Q23 operational result that was in-line with our estimates while trailing consensus in some areas.
Wet season saw WAIO shipments -11% qoq to 58.7mt but in-line with our 58.6mt. Unit costs at the top end of guidance, with pressure on costs remaining.
A mixed result in copper, with a drop at Escondida offset by Olympic Dam and Pampa Norte in copper volume terms (albeit lower margin operations).
Already in accumulate territory, further market jitters could uncover an attractive buying opportunity. We maintain our ADD recommendation.


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HRnetGroup Ltd (HRNET SP)
Taking a break

Slowdown looks unavoidable; D/G To HOLD

With signs of economic slowdown in Singapore becoming more apparent, we take a pre-emptive approach and reassess our numbers ahead of its 1H23 results in Aug. We cut our FY23-25E earnings forecasts by 15-18% after factoring in lower placement volumes, especially for its Professional Recruitment (PR) segment. While management remains optimistic of a potential recovery in 2H, underpinned by its China operations, we think the stock is unlikely to perform in the near-term. D/G to HOLD with a
reduced TP of SGD0.85 from SGD1.04, still based on 15x FY23E P/E. 


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