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UOB KAYHIAN |
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Thai Beverage (THBEV SP) Temporary Hiccup To Tourism Recovery
Thailand’s tourist arrivals continue to improve yoy despite lower-than-expected Chinese tourist arrivals. In a bid to revive tourism, Thailand has simplified visa requirements for Chinese tourists, its largest feeder market. However, the recent shooting in Bangkok is poised to partially offset any improvement in the near term. With the recent share price weakness, we reckon that THBEV is trading at attractive valuations, supported by favourable tailwinds. Maintain BUY but with a lower SOTPbased target price of S$0.75.
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Airports of Thailand (AOT TB) Limited Downside, Awaiting Robust Earnings In 1HFY24
4QFY23 earnings are likely to improve yoy and qoq to Bt3.7b (+379% yoy, +18% qoq), driven by a continued increase in passengers and new revenue collection methods. Although we have revised FY24 earnings down by 14%, we believe the downside risk is limited. We prefer AOT as it stands to benefit significantly from the recovery of Thailand's tourism sector. Maintain BUY. Target price: Bt76.00.
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UOB KAYHIAN |
LIM & TAN |
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Alibaba Group (9988 HK) 2QFY24 Preview: Eyes On Taobao-Tmall’s Focus Strategy; Near-term Growth To Be Spurred By Double 11
Alibaba saw a gradual improvement in consumption recovery in September after a slowdown in July-August. We expect revenue to grow 7% yoy for 2QFY24, underpinned by merchant initiatives and offset by soft consumption demand. We reckon revenue growth should recover to high single digits in FY24. Alibaba still offers an attractive risk-reward opportunity on the back of its restructuring plan. Maintain BUY with a lower target price of HK$120.00 (US$120.00).
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Civmec Limited (S$0.795, up 1.0 cent) has released its FY23 annual report and we highlight the following key points: From a financial standpoint, Civmec is delighted to report FY23 revenue of A$830.9 million, increasing from FY22 by more than A$21 million. The Group achieved a record earnings before interest, depreciation and tax (EBITDA) of A$109.1 million, as well as its highest net profit after tax (NPAT), which increased to A$57.7 million. At S$0.795, Civmec is capitalized at S$401.2mln and trades at defensively low valuations of 1.1x PB and forward PE of 7.5x. Dividend yield stands at 5.5%. Civmec is nicely balanced between private and public sectors and well diversified across the energy, materials, minerals, government infrastructure and government defence businesses. Order book of A$1.15bln provides revenue visibility with ample opportunities for Civmec as part of Australia’s clean energy transition. Consensus target price of S$1.14 represents a 43.4% upside. We maintain Buy on Civmec. |
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LIM & TAN |
MAYBANK KIM ENG |
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Keppel Corporation ($6.62, up 0.06) has been conferred the President’s Award for the Environment (PAE), the highest environmental accolade for individuals, educational institutions and organisations that have made outstanding contributions towards the environment and sustainability, as well as building a climate-resilient future for Singapore. The award was presented by the President of Singapore, Mr Tharman Shanmugaratnam, to Mr Danny Teoh, Chairman of Keppel Corporation, at a ceremony held at the Istana on 10 October 2023. Keppel’s sustainability / green / renewable initiatives will position them well to reap the benefits where these initiatives are in line with global government and fund objectives where ESG initiatives are gaining importance for global governments and fund managers when they make new investment decisions. We continue to have a favorable rating on Keppel and maintain our “Accumulate” rating. At $6.62, Keppel is capitalized at $11.66 billion and trades at 12x PE, 1x book and 5% dividend yield. Keppel will also be distributing in species Keppel REIT shares to their shareholders on the basis of 1 for 5 in the not too distant future, pending shareholders approvals. Bloomberg consensus 1 year target price of $7.87 implies a potential upside of 19%.
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Genting Singapore (GENS SP) Business as usual
Maintain BUY call and SGD1.12 DCF-TP Since news of the now SGD2.8b money laundering case broke in mid-Aug, GENS’ share price has fallen by 13% ostensibly on fears that VIPs will lay low and avoid casinos. Our conversations with GENS, reveal that this is not the case and it is business as usual for the VIP market and the mass market continues to grow. Our estimates, BUY call and SGD1.12 TP are unchanged. At its last price, the market is effectively discounting GENS’ net cash pile (end-FY23E: SGD0.26/sh) entirely, which we believe is overly negative.
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