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CGS CIMB |
CGS CIMB |
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Alibaba Group Included in the HK Stock Connect target list
■ Alibaba has been included in the HK Stock Connect list effective 10 Sep, which should be beneficial to its share price performance in the medium term, in our view. ■ On 4 Sep, Alibaba announced the addition of WeChat Pay capabilities for Taobao/ Tmall stores, helping it gain more users, especially from lower tier cities, in our view. ■ Alibaba has launched more favourable policies this year to attract good quality merchants to join its ecosystem. ■ Reiterate Add with an unchanged DCF-based TP of HK$113
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Hyphens Pharma International Healthy pipeline of new products
■ We upgrade our FY24F-26F EPS estimates by 12.8-13.8% due to better revenue momentum given its pipeline of products under registration. ■ This is as HYP achieved record revenue of S$99.6m in 1H24 (+33.4% yoy/+3.9% hoh), led by specialty pharma and proprietary brand segments. ■ HYP’s GP margin compressed 2.6% pts yoy in 1H24 due to unfavourable forex translation effects, but opex control partially offset bottomline impact. ■ Reiterate Add with a higher DCF-based TP of S$0.40 (WACC: 13.6%).
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CGS CIMB |
UOB KAYHIAN |
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CSE Global (CSE SP) Temporary Setback From Settlement Loss; Maintain Positive View On CSE For Its High Growth Trend
CSE announced arbitration proceedings between its US subsidiary, Hankin, and its customer, involving losses from construction project delays in the US. Both parties agreed to a settlement of US$8m on 8 Sep 24, to be paid by Hankin. We view this as a one-off impact for 2024 and continue to like CSE for its robust order pipeline. Our recent site visit to CSE’s US facility reinforced our view as it is riding the high growth electrification trend. Maintain BUY with a 2% lower target price of S$0.59.
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Banking – Malaysia Positive Outlook Priced In; Focus On Quality Laggards
The sector posted a muted 2Q24 PPOP growth of 3% yoy (down 2% qoq). With the sector trading at 1.0SD above its historical mean P/B and earnings growth lagging the KLCI, much of the favourable macro-outlook appears to be priced in. Although stock prices are likely to continue trending upwards with sustained foreign inflows, we maintain MARKET WEIGHT and recommend shifting to high-quality laggards with Public Bank and Hong Leong Bank as our preferred sector picks.
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| LIM & TAN | LIM & TAN |
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We highlight the key points from Keppel REIT’s (S$0.925, up 0.5 cents) investor presentation slides. 1H24 saw property Income increased 8.9% year-on-year due mainly to higher occupancy of Ocean Financial Centre and KR Ginza II, as well as contributions from 2 Blue Street and newly acquired 255 George Street. Distributable Income and DPU decreased 1.9% and 3.4% yearon-year respectively due mainly to higher borrowing costs Keppel REIT’s market cap stands at S$3.5 bln and currently trade at 20x forward PE and 0.7x PB, with a dividend yield of 6.2%. Consensus target price stands a S$1.02, representing 10% upside from current share price.
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Mapletree Logistics Trust / MLT ($1.43, up 1 cent) announced that through its special purpose vehicle in Malaysia, entered into separate conditional Sale and Purchase Agreements with third-party buyers for the respective proposed divestments of Linfox, Celestica Hub and Zentraline in Malaysia. The aggregate sale price of the three divestments is MYR157.5 million, or approximately S$47.7 million. MLT’s market cap stands at S$7.2 bln and currently trade at 22x forward PE and 1.0x PB, with a dividend yield of 5.7%. Consensus target price stands a S$1.60, representing 11% upside from current share price. |
