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CGS CIMB |
CGS CIMB |
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Mermaid Maritime Higher utilisation and rates ahead
■ We hosted MMT’s management for a call with investors on 7 Oct 24. Postcall, we remain positive on MMT’s fleet utilisation and order outlook. ■ Key investor questions were focused on the impact of oil prices on day rates, margin outlook and capex needs. ■ Management expects fleet utilisation to remain above 80% in 2025F, on the back of tight global vessel supply and higher oil price-driven demand. ■ We reiterate our Add call, with an unchanged TP of S$0.20, based on 11x 2025F P/E.
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Property - Overall Primary sales boosted by lower mortgage rates, attractive pricing
■ Over 460 units were sold in HK’s primary residential market in the immediate past weekend (5-6 Oct), ~200 more than the weekend prior. ■ We expect a boost in primary residential transactions in 4Q24F and reiterate our projection for 15k primary transactions in 2024F. ■ We are positive on the HK residential segment on the back of progressive US rate cuts ahead. Among developers, we like SHKP, HLD and Kerry Prop.
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CGS CIMB |
UOB KAYHIAN |
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Malayan Banking Bhd Zooming into Maybank SG and INDO
■ We view Maybank as the biggest banking beneficiary of positive economic developments in Johor given its strong exposure in Malaysia and SG. ■ Maybank INDO expects its PTP to recover sequentially following the decline in 1H24, which was dragged down by chunky corporate provisioning. ■ Reiterate Add, given the robust fee income and capital management initiatives to enhance its dividend yields and ROE.
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Offshore Marine – Singapore A Perfect Storm
As recently as a month ago, oil prices appeared fragile with angst about lower Chinese demand and higher supply from OPEC+. China’s recent massive stimulus measures plus significantly worsening Israel-Iran tensions saw a 14% rally in oil prices since the end of September. Upstream oil companies like RHP and REXI are direct beneficiaries of the higher oil prices. We raise our target price for STM to S$2.80 on the back of potential removal of its regulatory overhang and positive sentiment towards the sector.
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| UOB KAYHIAN | MAYBANK KIM ENG |
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Hong Kong Developers And Landlords Expect Strong Performance Of Stock Market To Positively Impact Property Prices
The CCL index fell 7.71% in 9M24. We anticipate a 3% rebound, supported by both rate cuts and China's economic stimulus policies. For the Golden Week holiday, the first six days registered a 24% yoy growth in the number of mainland tourists, with F&B being the major beneficiary. However, the relatively high Hong Kong dollar exchange rate may continue to weigh on high-end tourism spending. Maintain MARKET WEIGHT, preferring developers. Our top picks are SHKP and LINK REIT.
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Marco Polo Marine (MPM SP) Beneficiary of rising oil prices
Maintain BUY with a TP of SGD0.08 With oil prices rising, we expect charter rates to continue to rise in the near term and utilisation across MPM’s vessels likely to remain high. We also believe that its current valuation at 6.6x FY25E P/E is attractive as CSOV and CTV earnings should kick from FY25E. Coupled with expected increase in ship repair volumes, FY25E earnings should jump. We believe that investors can potentially accumulate while awaiting completion of the CSOV due 1Q25, which is likely to be a key catalyst.
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