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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Zixin Group Holdings
Food security remains the catalyst
• We visited Zixin’s factory and plantations in Liancheng County, China, recently. Investments into food security infrastructure by the government and the company’s R&D efforts have driven up the volume and shelf life of fresh sweet potatoes by 160% and 328% respectively in 1H FY25. Sweet potato waste is also now developed into nutritional content of animal feed, with the aim of reducing the import of soybeans. Zixin is working with CITIC Construction to replicate a similar food supply chain in Hainan Island.
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Lendlease Global Commercial REIT Higher for longer interest rate
• Although interest rates have peaked, we expect that the all-in cost of borrowing for LREIT will hover at the current high level of c.3.7% in FY25e. This is due to the high proportion of loans tied to fixed rates, which will delay the benefit of any future interest rate cuts for LREITs.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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BRC Asia Ltd Top-line headwinds but recovery in sight
▪ FY24 revenue was below expectations, 90% of our FY24e estimates. An estimated 10% fall in steel prices and engineering delays, has caused slower progress in project completion. Order book increased 8% YoY to S$1.4bn (4Q24: $1.3bn), one of the highest recorded by the group.
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Centurion Corp (CENT SP) A Stock To Accommodate Growth-Minded Investors
CENT reported stronger-than-expected 9M24 revenue growth of 25% yoy to S$186.5m, driven by continued strong occupancies and positive rental revisions across both of its business segments. The company remains busy on the business development front by expanding into China in the build-to-rent space as well as bolstering its position in its Australian PBSA segment. We upgrade our 2024-26 EPS by 2-11%. Maintain BUY. Target price raised to S$1.11.
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UOB KAYHIAN |
UOB KAYHIAN |
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Banking – China Improved 4Q24 Outlook Amid Policy Supports
China banks reported improved earnings growth, driven by narrower revenue declines, strong trading gains and lower credit costs. We expect the sequential NIM decline to worsen in 4Q24 due to policy rate cuts. However, we believe China banks will maintain positive earnings growth for 2024, supported by the low base effect in 4Q23 and the stimulus package announced in late-Sep 24. Maintain MARKET WEIGHT. Top pick: CMB.
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Malayan Banking (MAY MK) 3Q24: Supported By Strong Non-Interest Income Growth
Maybank’s 3Q24 net profit was in line, supported by strong non-interest income and a turnaround in insurance net income. Looking ahead, we expect non-interest income growth to taper off while NIM could start to stabilise. We maintain HOLD on Maybank and target price of RM10.56 (1.18x FY25F P/B, 10.2% ROE). The stock is trading at mean PBV which we deem fair given its modest earnings growth forecast of 5% while current dividend yield of 6% is also comparable with historical levels.
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