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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Telecommunications (ST SP) Early Progress In Driving Shareholder Value And Its Growth Engines.
In line with its Singtel28 growth plan, Singtel made several announcements that are set to drive shareholder value, and also doubled down on its future growth drivers such as its data centres. Management also noted that the group’s core businesses are on a stronger footing moving into 1QFY25. In view of a decent dividend yield of 5.5% and improving outlook, we maintain BUY but with a higher target price of S$3.58.
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Automobile − China Weekly: PEV Sales Down 4% yoy But Up 8% wow During 8-14 July, In Line
China’s PV insurance registrations dropped 4% yoy but grew 2% mom/8% wow to 368,000 units in the second week of July (8-14 Jul 24), in line with expectations. PEV insurance registrations jumped 35.0% yoy/5.0% mom/7.5% wow to 186,000 units during the week, boosting market share to 50.5%. BBA are cutting 2024 China sales targets and backing down on the price war to preserve the margins of their dealers. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL and Tuopu. Top SELL: XPeng.
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LIM & TAN |
LIM & TAN |
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Thai Bev ($0.495, trading halt) through its indirect wholly-owned subsidiary InterBev Investment Limited (“IBIL”), has proposed a share swap with TCC Assets Limited (“TCCAL”). The Proposed Share Swap will involve no cash outlay from IBIL or ThaiBev. Thai Bev’s market cap stands at S$12.4bln and currently trades at 11.7x forward PE and 1.7x PB, with a dividend yield of 4.6%. Consensus target price stands at S$0.64, represenƟ ng 28.0% upside from current share price. We like this deal as this deal is 4.3% earnings accreƟ ve (Pro forma FY24 EPS increase from Baht 1.06 to Baht 1.10) and ThaiBev will focus on it’s core F&B business while leveraging on F&N’s experƟ se. ValuaƟ ons are undemanding and we call an “Accumulate” on ThaiBev.
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SATS Airport Services Pte Ltd, a wholly-owned subsidiary of SATS Ltd ($3.27, down 5 cents), (SATS), the world’s largest provider of air cargo handling services and Asia’s pre-eminent provider of food soluƟ ons, SIA Engineering Company Limited ($2.43, unchanged) (SIAEC), a leading aircraŌ maintenance, repair and overhaul (MRO) service provider in Asia-Pacifi c and Changi Airport Group (CAG), have signed a Memorandum of Understanding (MoU) to start a proof of concept (POC) on the use of autonomous buses to transport airport staff around Changi Airport’s airside. SATS’s market cap stands at S$4.8bln and currently trades at 27.5x forward PE and 2.0x PB. Consensus target price stands at S$$3.41, represenƟ ng 4.3% upside from current share price. SIA Engineering’s market cap stands at S$2.7bln and currently trades at 17.4x forward PE and 1.6x PB, with a dividend yield of 1.7%. Consensus target price stands at S$2.75, represenƟ ng 13.2% upside from current share price. |
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