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UOB KAYHIAN |
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SEA Ltd E-commerce prospects improving
■ 4Q23 was a beat on both revenue and EBITDA. Shopee’s reinvestment drive bore fruit with improved GMV momentum, while rate of cash burn eased. ■ SE guided for high-teens GMV growth for Shopee in FY24F and adj. EBITDA to swing positive in 2H24F, as it adopts a more nimble approach in FY24F. ■ Upgrade to Add from Hold on normalising competitive landscape for the ASEAN e-commerce industry, with a higher TP of US$74.
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Centurion Corp (CENT SP) 2023: Strong Results Across The Board With Bright Outlook Ahead
CENT reported strong 2023 results with higher occupancy rates and positive rental reversions across all its geographies and asset classes. Free cash flow generation remains strong, and with gearing at 0.38x and some capital recycling of its assets, the company has a decent war chest for its organic and inorganic ambitions. Stock liquidity remains an issue. Maintain BUY. Target price raised to S$0.57.
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CGS CIMB |
UOB KAYHIAN |
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Strategy Panning for gems
With the 4Q23 results season failing to deliver much excitement, the Singapore market continued to drift downwards (-3.2% YTD), with the much-awaited Fed Fund rate cut yet to materialise. That said, valuations of the STI appear inexpensive, trading at 10.6x CY24F P/E multiple and 1.1x P/BV.
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Velesto Energy (VEB MK) Rates And Utilisation Fully Priced In For 2024
As expected, VEB is likely to have secured another extension of the Petronas umbrella contract; hence, 2024 contracted utilisation should be similar to that of 2023. Having said that, the locked-in rates also imply that VEB is unlikely to benefit from a continued upward trajectory of global rig rates. 2024 may come with a new set of challenges ie rising costs and supply chain delays causing slippage risk on new rig fixtures. As riskreward is priced in, downgrade to HOLD, with adjusted target of RM0.29.
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| OCBC SECURITIES | PHILLIP SECURITIES |
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ST Engineering Ltd (STE SP) - Stability with growth potential
• Outperformed market with total returns of 20.5% over last 12 months, based on 4 March 2024 prices • 10% net profit growth in FY23 • Scope for further orderbook strength with progress made in growing international defence exposure
ESG updates STE’s ESG rating has remained at a consistent basis, and we note that the group scores better than the industry average on the aspects of Opportunities in Clean Tech and Labour Management. In research’s view, the company’s corporate governance continues to be average relative to global peers. With regards to the aggressiveness of the group’s reduction target in the context of its current performance, ESG rates STE in the midrange, with a score of 7.0 (0 being the worst, 10 being the best) in regard to its strength in GHG mitigation. BUY
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Phillip Singapore Monthly – Feb24 A yawner this month
The Singapore market was largely unchanged in February. Down just 0.35%. REITs took a 5% knock as expectations of a rate cut were pushed out towards the second half. The red-hot semiconductor sector wasthe biggest gainer.Optimism in North Asia drove up Hong Kong-related stocks.
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