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UOB KAYHIAN |
UOB KAYHIAN |
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Automobile – China
Weekly: Suppliers Pushing Back Against BYD’s Request For 10% Price Cut
BYD’s suppliers are pushing back against the company’s request for a 10% price cut in 2025. Mexico is planning to remove Chinese companies out of the supply chain, which may dampen Chinese auto part companies. Nexteer would be hit the most, and Fuyao Glass the least. The EU may cancel the additional tariffs on China-made EVs. China’s PV insurance registrations grew by 34% yoy during 18-24 Nov 24, beating expectations. Maintain MARKET WEIGHT. Top BUYs: Geely, Fuyao, and Desay SV.
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Sheng Siong Group (SSG SP) 3Q24: Another Solid Quarter; Steady Growth Ahead
SSG reported stronger-than-expected 3Q24 revenue of S$363m (+5% yoy) and earnings of S$39m (+12% yoy), bringing 9M24 revenue and earnings to 77%/81% of our full-year forecasts. This was driven by both new stores and higher comparable same-store sales. Another record gross margin of 31.3% (+1ppt yoy) was achieved on improved sales mix. We see further upside from potential new store openings and upgrade our 2024-26 EPS by 7-9%. Maintain BUY with a higher target price of S$1.93.
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UOB KAYHIAN |
UOB KAYHIAN |
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Genting Malaysia (GENM MK) 3Q24: Negatives Mostly Priced In
GENM delivered EBITDA decline on higher opex from its US and Malaysia operations, but earnings from both RWG and overseas operations still exceeded pre-pandemic levels. Meanwhile, resilient earnings momentum and lush dividend yield of 7-9% are highly appealing following the recent share price decline. Maintain BUY as most negatives such as a potential KLCI exclusion have likely been priced in. Lower target price to RM2.83.
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CIMB Group (CIMB MK) 3Q24: Solid ROE Trajectory Priced In
CIMB reported 3Q24 earnings that were broadly in line with expectations. 3Q24 earnings growth was underpinned by lower provisions and strong forex income. However, we think that these positives have been priced in with the stock trading at +1SD above its 10-year historical mean P/B. Maintain HOLD and target price of RM8.12 (1.14x 2025F P/B, 11.5% ROE).
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DBS RESEARCH |
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GRAND VENTURE TECHNOLOGY
• Double digit growth in revenue (+35.8% y/y) and adjusted net profit (+59.0% y/y) in 9M24 mainly driven by strong semiconductor performance, in line
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