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UOB KAYHIAN |
CGS CIMB |
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RH Petrogas (RHP SP) 1H24: Strong Results Due To Solid Cost Control And Higher Oil Prices
Due to steady yoy oil production, strong cost control (-17% yoy) and higher oil prices, RHP reported a threefold increase in PATMI to US$7.3m, in line with our expectations. During 4Q24, the company’s Basin PSC will see decent activity with the drilling of one well at the Arar Block, and the start of production from its new Piarawi well. Maintain BUY. Target price lowered slightly to S$0.231
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Propnex Ltd Slow start to the year
■ 1H24 EPS of 2.57 Scts below expectations, at 36.7% of our FY24F forecast. ■ Lower project marketing revenue was partly offset by higher HDB and private resale commissions in 1H24. ■ Maintain Add, with a lower TP of S$0.94 as we cut our EPS forecasts.
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CGS CIMB |
CGS CIMB |
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Japfa Ltd Equal Access Offer for 9% outstanding stake
■ On the evening of 19 Aug 24, JAP announced that it is undertaking an offmarket purchase of its shares by way of an Equal Access Offer (EAO). ■ JAP is offering to purchase up to c.9% of its outstanding shares at a price of S$0.355/share, a c.6% premium over its last traded price of S$0.335. ■ Each shareholder is entitled to sell up to 9% of their shareholding and can tender to sell more than 9%, subject to EAO conditions. ■ Reiterate Add. Given the EAO is lower than our TP of S$0.43, we do not recommend shareholders to accept the EAO.
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Property Devt & Invt Cooling the resale HDB market
■ Government lowers LTV for HDB housing loan to 75% effective 20 Aug 2024. ■ We believe this could drag near-term volume transactions and slow HDB resale price momentum. ■ Reiterate Neutral sector rating. Preferred pick: CLI.
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| LIM & TAN | LIM & TAN |
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China Aviation Oil / CAO’s (S$0.86, unchanged) 1HFY24 results came in line with expectations with overall revenue and net profit coming in at 43%/58% of our forecast. Both CAO’s top-and-bottom lines benefited from the resurgence in global air travel demand. Capitalized at S$740mln, CAO trades at 7.6x FY24F P/E, 0.6x P/B with a dividend yield of 4.0%. After several years of a weakened aviation industry, CAO is expected to see an increase in jet fuel supply volumes and earnings growth ahead. The CAAC expects further growth in the international air passenger traffic for the second half of the year, boosting jet fuel demand and CAO remains well-placed to end 2024 on a strong note. We maintain BUY on CAO with an unchanged target price of S$1.24, pegged to 11.0x FY24F P/E.
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Spindex Industries (S$0.865, unchanged) saw FY24 net profit jump 43.8% yoy to S$15.6mln from S$10.8mln in FY23. For its full year FY24 ended June, it announced a final dividend of S$0.027, higher than the S$0.005 declared in FY23. There is no analyst coverage on Spindex. At $0.865, market cap is $99.8mln, P/E is 6.4x, P/B is 0.6x (NAV per share is S$1.445), dividend yield is 3.1% and its current net cash position of S$56.3mln equates to 56.4% of present market cap. Given that the broader technology industry is looking bullish as worldwide semiconductor sales is forecasted to register yoy growth of 16% to reach US$611bln this year, we therefore expect Spindex to benefit from this positive trend. |
