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PHILLIP SECURITIES |
MAYBANK KIM ENG |
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17LIVE Group Limited Bottom line turned black
• Operating revenue for 1H24 missed our estimates and fell 33% YoY to US$101.1mn due to decreasing MAU, accounting for 40% of our FY24e forecast. However, we anticipate a turnaround in 2H24, as operating statistics such as MAU and retention ratios have bottomed out. Various initiatives, including streamer training to improve techniques and average streaming time, are expected to contribute to this positive trend.
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Carlsberg Brewery Malaysia (CAB MK) 2Q24: In-line
Maintain BUY with unchanged DCF-TP of MYR21.00 CAB’s 2Q24 results met our expectations. Sales volume in sequential quarters may remain subdued until consumer spending picks up towards the year-end. Following CAB’s price adjustment in Apr 2024, it also has more room to defend margins if input costs unexpectedly increase in 2H24. Our earnings estimates, BUY call and DCF-TP of MYR21.00 (WACC: 8%, LT: 3%) are unchanged with decent yields of 5+%.
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LIM & TAN |
LIM & TAN |
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UOL (S$5.20, down 5 cents) reported a three per cent decline in net attributable profit for its half-year ended 30 June 2024 (1H24) to $130.4 million due mainly to attributable fair value losses of $12.2 million compared with fair value and other gains of $3.3 million for the same period last year. Group pre-tax profi t before fair value and other losses/ gains totalled $245.3 million, up seven per cent from $228.8 million in 1H23 due mainly to higher earnings from property investments, hotel operations and dividend income. UOL’s market cap stands S$4.4bln and currently trades at 13x forward PE and 0.6x, with dividend yield of 2.9%. Consensus target price stands at S$7.47, representing 44% upside from current share price. Despite the underperforming property development, we think that this has already been priced in investors should look forward to a potentially more dovish environment that will boost the property segment. Given the growing hospitality segment, attractive valuations and that the Wee family has started their share purchases just yesterday at S$5.20, strong balance sheet with low gearing of 27%, we continue to recommend an “Accumulate” rating on UOL
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Keppel Ltd ($6.00, up 0.04), Asian Development Bank (ADB) and Enterprise Singapore (EnterpriseSG) have signed a Memorandum of Understanding (MOU) to jointly explore USD 800 million worth of energy transiƟ on, environmental sustainability, and blended finance opportunities in Asia and the Pacifi c region. We see Keppel Ltd’s lead in the move towards a greener future to be in line with that of the goal of Governments around the world and this should help to attract “ESG” focused funds to the stock. Valuations for Keppel Ltd remains undemanding at 12x forward PE, 6% yield and consensus target price of $7.80 implies a 1 year potential return of 30%. We maintain an “Accumulate” rating on Keppel Ltd. |
| UOB KAYHIAN | UOB KAYHIAN |
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Sheng Siong Group (SSG SP) 2Q24: Record-high Gross Margin; More Stores Slated To Open
SSG’s 2Q24 earnings of S$34m (+5% yoy) are in line with expectations, bringing 1H24 to form 52% of our full-year estimate. Gross margin hit a record high of 30.9% due to a more favourable sales mix. A higher interim dividend was declared. SSG has opened four new stores and been awarded three tenders to date. We expect SSG’s growth to be driven by the full impact of the new store openings while it continues to secure new locations. Maintain BUY with a target price of S$1.88.
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PropNex (PROP SP) 1H24: A Slower First Half; Expect Some Catching Up In 2H
PropNex’s 14% yoy decline in 1H24 PATMI was due to the dearth of new property launches. By our estimates, this will be made up for in 2H24 and 1H25 as a result of the strong pipeline of 16 new launches, amounting to over 6,500 units which is double the number launched in 1H24. Overall transaction volumes as well as prices should remain reasonably firm for the remainder of 2024, in our view. PropNex offers a defensive yield of 6.4% for 2024. Maintain BUY with target price lowered to S$0.96.
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