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CGS CIMB |
CGS CIMB |
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Thai Beverage BeerCo listing remains on the cards
■ During its 2024 Annual Information Session, THBEV shared that its BeerCo IPO/strategic partnership plans remain on the cards, with an eye on 2025F. ■ THBEV believes proposed Vietnam excise taxes hike (effective 2026F) is manageable, and sees potential benefit from consumer down-trading. ■ Portfolio premiumisation remains key to driving THBEV’s longer-term growth. Valuations undemanding but we reiterate Hold on lack of near-term catalysts.
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BYD Co Ltd BYD’s SEA NDR key takeaways
■ BYD remains optimistic about its NEV shipments growth in FY24F, owing to stronger PHEV sales in SEA/LATAM, and higher premium model deliveries. ■ The EU will raise BYD’s import tariffs to 27.4%; BYD expects the impact to be manageable given that it currently enjoys higher ASP and VPM in the EU. ■ Reiterate Add. TP raised to HK$345, implies 26x FY24F P/E and 11x FY24F EV/EBITDA.
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UOB KAYHIAN |
UOB KAYHIAN |
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REITs – Singapore Hollowing-out Of Business Parks Is Location Specific
CBP has sub-par occupancy of 70% as companies in the financial services and technology sectors downsized and offshored IT to India. IBP has low occupancy of 61% due to poor transportation connectivity and a lack of amenities. Maintain OVERWEIGHT. Prefer MINT (BUY/Target: S$2.93) due to high occupancy at 98.5% for its flatted factories. CLAR (BUY/Target: S$3.62) has the largest exposure to business park properties in Singapore at 21.4% of portfolio valuation.
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Banking – Malaysia Chugging Along
The sector delivered 1Q24 earnings growth of 7% which was broadly in line with expectations. As the sector is trading at its historical mean valuation and is anticipated to lag the FBMKLCI’s earnings growth, we perceive the current risk-to-reward ratio as being well balanced. In the absence of meaningful earnings catalysts, we maintain MARKET WEIGHT on the sector. CIMB remains our top pick.
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| LIM & TAN | |
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Valuetronics ($0.625, unchanged) announced that it has partnered with Sinnet Cloud HK Limited (“SinnetCloud HK”) to tap into the wide-spread and growing use of Artificial Intelligence (“AI”) applications today. Through its wholly-owned subsidiary, Value Match Company Limited (“VML”), Valuetronics will invest HK$7.7 million in cash for a 55% interest in the joint venture (“JV”) - Trio AI Limited (“TrioAI”) to provide Graphics Processing Unit (“GPU”) and AI related value-added cloud services. At its last close of 62.5 cents, Valuetronics is valued at $256mln and trades at 1x book and 10x PE. Trading at a dividend yield of 6.6% and with 70% of its market cap backed by net cash and with management’s intenƟ on to continue its share buy back program, we believe the stock will remain well-supported and resilient. We maintain an “Accumulate” rating and note that consensus target price is 76-78cents.
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