buysellhold july.23



Genting Singapore

MBS read-through: tourism-boosted 1Q24


■ MBS’s hold-adjusted EBITDA (adjusted for win rate) grew 26.2% yoy to a record US$520.0m, marking the 8th consecutive quarter of qoq growth.

■ We think the gaming industry continued to benefit from a recovery in tourism in Singapore in 1Q24, with IVAs up 54.4% year-to-February.

■ We view MBS’s 1Q24 results as a positive sign for GENS 1Q24F results, especially as tourist arrivals should continue to grow yoy. Maintain Add.


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Hong Leong Asia

Highlights from investor meetings


■ We hosted meetings with HLA’s management this week, where we gained further insights into latest business trends and longer-term ambitions.

■ We believe HLA’s BMU unit can benefit from robust SG/MY construction activities in the medium term, while Yuchai earnings recover from a low base.

■ Reiterate Add; we believe HLA is an underappreciated proxy for the SG/MY construction industry upcycle – share price implies 2.5x P/E for its BMU unit.



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AIA Group

Historically strong bounces from 25% falls


■ AIA’s share price fell 25% mom on 13 Apr 2024, the third such fall since its 2010 IPO (-25% mom on 4 Oct 2011 and 19 Mar 2020).

■ The first two 25% fall incidences saw a ≥20% rebound a month after (Fig 1). Four cases of ≥20% mom rebounds occurred within a year of Mar 2020’s fall.

■ AIA’s 12-month forward P/EV and P/E (operating) are all >3 s.d. below its post-2017 mean (Figs 3-4). We see its valuations as extremely attractive.

■ Reiterate Add rating with TP unchanged at HK$95. Remains top sector pick.



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We highlight the key question and answers for Comfort Delgro’s ($1.46, up 0.01) latest AGM:

Q.Moving forward in 2024, what plans do we have for increasing revenue and adopƟ on of ComfortDelGro app? What is CDG’s long-term plan with its digital plaƞ orm (CDG Zig), amid intense competition (especially Grab)? How can CDG scale-up and maintain competitiveness in taxi business?

A.We will continue to focus on boosting the CDG Zig app adoption through collaboration with partners such as financial institutions, airlines, and event organisers. We have also planned several targeted marketing campaigns in the next few months to further promote the app and increase the mindshare of CDG Zig among ride hail users. Beyond ramping up awareness and app adoption, we will ensure that the tech stack of the CDG Zig dispatch system remains up-to-date to maintain and improve its usability and user-experience. Collectively, the improved app adopƟ on and usage should increase trip counts and revenue. 

We maintain an “Accumulate” rating on Comfort Delgro given that we are constructive on their ability to leverage on the re-opening of global economies post Covid to ride on the robust recovery of their taxi, bus and also rail businesses. Management’s willingness to reward shareholders via sustained dividend increases is also a major positive for investors. Its forward PE of 14-15x remains undemanding relative to its expected growth rate of 25%. Div yield is 5%.


Eco World Development (ECW MK)

2H sales to be boosted by new projects


Update on upcoming projects

We expect ECW to achieve stronger sales in 2HFY24 driven by the launch of two new projects in Kajang and Kulai with a combined GDV of MYR2.1b. These projects are scheduled for launch by 3Q/4QFY24. We maintain our FY24 sales assumption of MYR3.7b (5.7% higher than ECW’s sales goal). No change to our earnings forecasts and MYR1.83 TP (on 1.1x FY24E PBV). Our BUY recommendation is backed by 4.3% net DY. 






Axiata Group (AXIATA MK)

Sri Lanka developments


Further market consolidation We view Dialog’s merger with Airtel Lanka as an overall healthy market development, while generating longer-term synergies. However, there are integration costs to be borne which could defer Axiata’s net profit recovery in the initial years. We continue to view Axiata’s overall riskreward as being positive, with net profit recovery and balance sheet repair being potential re-rating catalysts. Reiterate BUY with an unchanged MYR3.50 SOP-based TP. 



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