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CGS CIMB |
CGS CIMB |
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Mermaid Maritime Charting new waters
■ MMT’s orderbook (OB) of US$976m, as of 2Q24, is at an 11-year high due to new decommissioning orders and renewal of IRM contracts at higher values. ■ Limited newbuilds over the past decade have kept global vessel supply tight, driving MMT’s fleet utilisation to over 80% in 1H24, up from 50% in 2021. ■ We expect MMT to achieve net profit growth of 22%/70% in FY24F/25F from execution of larger-scale decom. projects and high-margin cable-lay orders. ■ The stock trades at a 33% discount to global peers’ 2025F P/E. We initiate on MMT with an Add call and TP of S$0.20, based on 11x 2025F P/E.
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New World Development Focus reset to deleveraging
■ NWD’s disappointing FY6/24 results were as expected. We think its exCEO’s resignation was due to the fallout from its rapid expansion in 2016-21. ■ New CEO said NWD will take concrete measures to deleverage, by disposing of non-core assets, stringent capex control and temporary dividend halt. ■ We think that NWD will be able to weather the current challenges while huge FFR rate cuts by 2025F should help it reduce interest expenses markedly. ■ NWD trades at a 78% discount to NAV (which we believe has priced in most of its negatives). We reiterate an Add rating with a lower TP of HK$9.5.
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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Zixin Group Holdings Food security helps to double profit
• We expect earnings to at least double to RMB 30.9mn. The government aims to reduce reliance on imported soybeans and shift more to alternatives such as sweet potatoes. The promotion of food security, along with improved new facilities like cold storage and new high-tech manufacturing, will double volume. Gross margin is anticipated to increase by 2 ppt YoY to 34% in FY25e, as Zixin expands its processed sweet potato product offerings and benefits from higher margins products.
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Pacific Radiance Ltd The Revival
▪ We expect earnings to jump in FY25e, backed by more than US$40mn of charter contracts, the construction of crew transfer vehicles, and increased scale in ship management operations. The restructuring of associate Logindo will further enhance the company's valuation.
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| UOB KAYHIAN | UOB KAYHIAN |
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Sea (SE US)
a) Shopee's partnership with YouTube to drive site traffic, b) second round of take rate hikes this year which indicates easing competition, and c) Thailand ‘svirtual bank licence application which could expand SeaMoney’s ecosystem. We expect to see further re-rating for SEA as it builds up stronger moats. Maintain BUY with a 28% higher target price of US$112.54.
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RHB Bank (RHBBANK MK) ]Asset Quality Concerns Behind; Upgrade To BUY
The stock is currently trading at an attractive 0.80x P/B, well below the sector’s 1.24x despite delivering similar ROE. This makes it a clear laggard, with current valuations at -1SD to its historical P/B mean. In view of its stable asset quality and strong preprovision growth of 13%, we believe the stock is poised to outperform the sector in 2H24. Potential capital management optimisation offers further upside. Upgrade to BUY with a higher target price of RM6.80(10.0% ROE, 0.90x .2025F P/B) |
