ANALYSTS SAY: Buy, Sell, Hold (27 Sept)

CGS CIMB

UOB KAYHIAN

VS Industry Bhd
Near-term pressure from RM appreciation

■ 4QFY24 results beat expectations on stronger-than-expected margins, stemming from its vertical expansion initiatives and a better product mix.
■ This, however, could be negated by recent sharp ringgit appreciation going forward, as US$-denominated costs typically take a while to be passed on.
■ Reiterate Hold with a lower GGM-derived TP of RM1.03, following our FY25-26F EPS cuts of 7-8%. Stock at 18.7x FY25F P/E looks fairly valued.

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Emperador Inc (EMI SP)

2Q24: Weak Results As Demand Falls

EMI reported weak 1H24 results with lower revenue (-7.9% yoy) and PATMI (-19.6% yoy), dragged by both the brandy and Scotch whisky segments as demand remains weak. Increased promotional activities and higher interest costs continue to pressure overall margins. As there are no near-term catalysts and ongoing headwinds, we think that EMI is overvalued at the current valuation levels. We downgrade EMI to SELL with a lower PE-based target price of S$0.30 (S$0.48 previously).

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UOB KAYHIAN

MAYBANK KIM ENG

Baidu Inc (9888 HK)

Key Highlights From Baidu Cloud Intelligence Conference 2024

Baidu Cloud Intelligence Conference 2024 was held on 25-26 September in Beijing. Baidu upgraded its two key AI infrastructures, Qianfan Large Model Platform 3.0 and AI
Computing Platform 4.0, focusing on computing power, LLM, and AI applications. Meanwhile, the company also enhanced three major AI-native applications including intelligent customer service Keyue, digital human Xiling and code assistant Baidu Comate. Maintain HOLD with a slightly higher target price of HK$90.00 (US$100.00). 

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Gamuda (GAM MK)
FY24: Another record year; proposed 1-for-1 bonus

Earnings in-line; maintain BUY
Gamuda’s FY24 core net profit (CNP) of MYR912m was in-line (100% of our est., 95% of consensus), representing the 3rd consecutive year of record profits. We make just marginal tweaks to our FY25-26 CNP forecasts due to house-keeping, and introduce FY27 forecast. We however raise our DPS
forecast to 20sen (+4sen) p.a. based on guidance. BUY maintained with a higher RNAV-TP of MYR8.70 which implies 21.7x FY25E PER (+1.5SD of LT mean) with the re-rating to reflect sizeable job wins potential. A 1-for-1 bonus issue was proposed which will improve trading liquidity further.

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Venture Corporation Limited ($14.16, up 0.36) has received an award at Lam Research Corporation’s (NASDAQ: LRCX) Supplier Excellence Awards 2024, which recognised nine companies from around the world for performance across a range of categories. Lam Research is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. As quoted in Lam Research’s press release dated 23 September 2024, Venture was a winner for the Rapid Prototype Materials Performance Award, for exceptional support, responsiveness, and on-time delivery, which enabled Lam Research to provide solutions faster to meet customer needs. Venture’s US and Southeast Asia sites collaboratively partner Lam Research in providing soluƟ ons and services with the highest level of quality, agility and excellent value. Venture is honoured to be the only Singaporean company selected for this prestigious award, an affirmation to our pursuit of excellence and commitment to customer satisfaction.

We continue to like Venture Corp as it stands shoulder to shoulder to the world’s best in class tech & manufacturing companies and also endorsement from Lam Research. We maintain our “Accumulate” rating given its 10-15% growth expected going forward against PE of 12-13x, while it yields 5.3%.

We highlight the key points from Starhill Global’s ($0.535, up 1 cent) latest annual report Starhill Global REIT’s porƞ olio comprises nine mid- to high-end properƟ es in six Asia-Pacific cities and portfolio is characterised by its master and anchor leases which make up about 53.1% of gross rent.

Outlook: Despite prevailing market uncertainties, the macro environment ahead could be turning a corner as moderating inflation is likely to result in a decline in interest rates. Starhill Global remains positive on the outlook for Singapore, given the improving tourist arrivals and limited new supply of office and retail space in the Orchard Road vicinity. This should translate into sustained occupancy, especially with the recently renovated Wisma Atria Property. Residents in the east will find it more convenient to get to the malls in Orchard Road, with

the completion of Stage 4 of the Thomson East Coast Line. Starhill Global remains cautious on Australia as the elevated interest rate environment and inflationary pressures will continue to impact consumer spending, further moderating retail trade. Notwithstanding this, Starhill Global will remain focused on elevating the portfolio by exploring asset o.enhancement opportunities to future-proof it’s portfoli.