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CGS CIMB |
CGS CIMB |
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Singapore Strategy Potential implications of a Trump win
■ A Trump win may mean near-term boost, slower long-term growth outlook. ■ We see opportunities for banks, tech manufacturing and capital goods on funding prospects and supply chain shifts. ■ There could be potential adverse implications for aviation services, ecommerce and renewable energy sectors
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SEA Ltd 2Q24F: Solid performance across segments
■ We estimate SE’s 2Q24F adj. EBITDA at US$423m (+5% qoq), led by Shopee’s narrowing of losses and SeaMoney’s continued growth. ■ We see room for Shopee to raise its FY24F GMV growth guidance from current “high-teens yoy”, post strong 1H24F GMV performance (+31% yoy). ■ ASEAN e-commerce competitive landscape remains healthy with players further raising commission rates, albeit pockets of increased spending. Add.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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CSE Global (CSE SP) Overhang cleared and positive 1H24E looming
1H24 results due 6 Aug after market We believe that will perform well in 1H24E and its strong order momentum win rate will likely continue. We also believe that a substantial shareholder, who had been paring down their stake since 2023 has likely pared all their stake. This would be positive for CSE as the overhang suppressing the share price is likely gone. With better operating leverage due to strong revenue growth, CSE is on track to deliver better quarters ahead and remains one of our conviction picks as a rare proxy for electrification/AI/data centres. Maintain BUY.
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Malaysia Property Exciting … but largely priced in
JSSEZ, DC, corporate deals to drive interests JSSEZ and data centers will continue to be the sector’s focus into 2H 2024. Additionally, corporate exercises such as the listing of investment properties or other businesses could continue to drive investors interest. Industrial property segment will remain in the spotlight, benefitting from investment diversion from China. Surprises from major infrastructure projects like KL-SG High-Speed Rail (HSR) could provide short-term trading opportunities. We maintain NEUTRAL on the sector. Our top BUY is ECW.
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| LIM & TAN | LIM & TAN |
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Civmec Limited ($0.945, up 0.01) is pleased to announce the execution of a Memorandum of Understanding (MOU) with Austal Limited (Austal) (ASX:ASB) to form a Joint Venture (JV) to submit a proposal to the Commonwealth of Australia to support the LAND8710 Phase 2, Landing Craft Heavy (LC-H) project. LAND8710 Phase 2 (LC-H) will deliver enhanced transport and littoral manoeuvre capability to the Australian Army to enable greater capacity and reach over the Indo-pacific region. Capitalized at S$480mln, Civmec trades at defensively low valuations of 8x forward P/E and 1.2x P/B against strong ROEs of 15-16%. We believe that there is scope for final dividend to be higher at 3.5 A cents, up from 3 A cents last year. Including the interim dividend of 2.5 A cents, annualized div yield is an attractive more than 6%. Civmec trades at a discount to many of its Australian peers and a change in domicile with be the first step towards closing the valuation gap. We recommend an Accumulate with a target price of S$1.20, pegged to 11.0x forward P/E (15% discount to its larger-cap peers).
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Hutchinson Port Holdings Trust (US$0.129, up 0.1 cent) released 1H24 results and reported that Revenue and other income for the period was HK$5,316.8 million, HK$133.7 million or 2.6% above last year. Combined container throughput of HIT, COSCO-HIT and ACT (collectively “HPHT Kwai Tsing”) decreased by 6.9% in 2024 as compared to the same period in 2023, primary due to lower local and transshipment cargoes.
HPH Trust’s market cap stands at US$1.1bln and currently trades at 20x forward PE and 0.35X PB, with a dividend yield of 10%. Consensus target price stands at US$0.32, representing 150% upside to current share price. With the worst likely to be over and better times ahead with interest rate cuts being imminent and its attractive valuations and target price, we believe longer term investors can look to “Accumulate” the stock.
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