|
PHILLIP SECURITIES |
UOB KAYHIAN |
|
Singapore Telecommunications Ltd Adding liquidity to associates
▪ A new company (NewCo) will be created to own Singtel’s 24.99% stake in Intouch and Gulf Energy Development’s assets such as gas-fired and renewable power plants. In exchange, Singtel will own 9.08% of NewCo and receive S$135mn in special dividends.
|
Banking – Singapore 2Q24 Results Preview: Stable Interest Rates And Resilient Earnings
Growth in net interest income has moderated but fee income continues to sustain its recovery. Asset quality is stable and the level of provisions remains benign. Singapore banks are expected to deliver resilient net profit, with S$2,688m for DBS (+2% yoy but - 9% qoq) and S$1,830m for OCBC (+7% yoy but -8% qoq) in 2Q24, supported by resilient asset quality. Maintain OVERWEIGHT. Our top pick is OCBC (BUY/Target: S$18.15), followed by DBS (BUY/Target: S$41.40).
|
|
UOB KAYHIAN |
UOB KAYHAIN |
|
Thai Beverage (THBEV SP) Cementing Its Top Spot in Southeast Asia
THBEV announced a share swap deal that would see the group streamline its businesses to become a pure-play regional F&B player. The proposed swap deal would increase THBEV’s stake in its associate F&N, and is expected to be earnings accretive and create operating and cost synergies with THBEV’s NAB segment. In our view, THVBEV is trading at an attractive -2.0SD to its mean PE and a decent 4.5% FY24 dividend yield. Maintain BUY with a higher SOTP-based target price of S$0.60.
|
Hong Kong Exchanges and Clearing (388 HK) A Head Of Steam Or A Flash In The Pan?
June headline ADT declined 12% mom as the market turned cautious ahead of the third plenum meeting. Hence, we revised down our 2Q24 net profit growth forecast to 11% yoy. While the upcoming minimum spread review is expected to boost the headline ADT in the long term, the outcome of the third plenum meeting and the upcoming Fed rate cut cycle are likely to be the key near-term drivers of market sentiment and trading turnover. Maintain BUY. Target price: HK$310.00.
|
| LIM & TAN | MAYBANK KIM ENG |
|
We highlight the main points from SATS’ ($3.26, down 1 cent) AGM’s slides: FY24 achievements includes refinancing to reduce its cost of capital. The note was rated A3 by Moody’s and it’s first US$500M tranche coupon of c.3.5% was 3.6x oversubscribed, and has unlocked annual interest savings of c.$50M to date. Sats continued it’s progress on portfolio realignment and non-core divestitures to recycle capital and enhance return on assets. SATS market cap stands at S$4.9bln and currently trades at 27x forward PE and 2X PB, with a dividend yield of 0.5%. Consensus target price stands at S$3.40, representing less than 5% upside from current share price. With limited upside to consensus target price and also rich valuations and low dividend yield, SATS is “At Best A HOLD” |
Malaysia Plantations Thematic: Potential JS-SEZ beneficiaries in Kulai District
SDG is the largest landowner in Iskandar MYR1.8b worth of land deals were transacted in the District of Kulai alone since Jan 2023 involving mostly agri land with transacted prices of at least MYR8.50psf or MYR915,000/ha. While UEMS was once the largest landowner in Iskandar, SDG, KLK, JPG and GENP are now in the top 4 spots. Among the planters, SDG is the largest landowner in Kulai with 5,190ha (valued at c.MYR4.5b) while GENP’s 2,536ha is the most valuable on a psf basis (valued at c.MYR3.5b). While details are pending, JS-SEZ may further catalyse interest in Kulai. SDG is our preferred choice.
|
