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UOB KAYHIAN |
UOB KAYHIAN |
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REITs
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Automobile – China Weekly: PV Sales Down 4.8% yoy, Missing Estimates
China’s PV insurance registrations fell by 4.8% yoy and 4.4% wow during 16-22 Sep 24, missing estimates. PEV market share dipped by 3.6ppt wow to 49.5%. Denza has become a wholly-owned subsidiary of BYD but has dropped out of the top 10 in the weekly sales rankings for pure-play EV names, replaced by GWM’s Wey brand. Joyson is rapidly ramping up production capacity to fulfil the new orders intake. Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV and Geely. Top SELL: GAC.
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CGS CIMB |
CGS CIMB |
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REIT What’s in the price?
■ We remain positive on SREITs as further Fed Funds interest rate cuts would be supportive of yield spreads and lower cost of capital to spur growth. ■ Despite the recent share price rally pricing in some of the rate cut expectations, sector valuations remain inexpensive. ■ We maintain CLAR and FLT as our top picks and add LREIT.
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New Oriental Education Positive on education margin expansion
■ Due to weak consumption sentiment, we expect slower revenue growth for New Oriental’s premium 1x1 overseas test preparation classes in 1QFY5/25F. ■ We believe the overall demand for education services is still strong and New Oriental’s (EDU) revenue should grow 27% in 1QFY5/25F and 31% yoy in FY5/25F. ■ Although 1QFY5/25F overall net profit will be impacted by the one-off expenses related to East Buy, we expect education non-GAAP OPM to expand by 200bp yoy. ■ We reiterate Add given strong education growth, with new DCF-based TP of HK$74.1
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| LIM & TAN | LIM & TAN |
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Hanwha Group has issued a statement on Sept 25’2024 to explain its rationale behind its offer price for Dyna-Mac ($0.63, unchanged). The group, which is the substantial shareholder of Dyna-Mac, made a tender offer of 60 cents per share for the shares it does not own in the Mainboard-listed company on Sept 11’2024. Hanwha said that their offer is based on a rigorous review of factors affecting Dyna-Mac
Dyna-Mac’s market cap stands at S$794mln and currently trades at 10x Forward PE (ex-cash PE is around 5x). Given our target price of S$0.715 (consensus target price is between 64cts - 71.5 cts) continues to represent at least a 13.4% upside potential, and the founding family thinks that S$0.60 is not adequate and finally the offer is not yet final, we recommend that investors “HOLD” for the IFA’s recommendation to the board of directors and minority investors to make a decision.
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SIA Engineering ($2.38, down 4 cents) reported that SIAEP, a subsidiary of SIA Engineering Company Limited (“SIAEC”), is the first Embraer Authorised Service Centre in the Asia-Pacific region to perform maintenance, repair, and overhaul services for Embraer’s E-Jets E2 family of aircraft. SIAEP has been an authorised service centre in Asia-Pacific for Embraer’s first-generation E-Jets since 2017. SIAEP has three hangars located in Clark, Philippines. We continue to like SIE given that it is moving up the technical
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