|
UOB KAYHIAN |
UOB KAYHIAN |
|
Marco Polo Marine (MPM SP)
FY24: Earnings Beat; Bright Prospects Ahead
MPM’s FY24 core earnings of S$26m (+4% yoy) were above our expectation by 9%, due to better-than-expected margins in the offshore upcycle. FY24 revenue dipped 3% yoy due to lower ship repair volumes as one dry dock was unavailable, partially offset by higher ship chartering revenue on elevated charter rates. With the upcoming 4th dry dock, higher charter rates and new CSOV contributions, we expect to see a 9-16% boost in FY25-27 earnings. Maintain BUY with a higher target price of S$0.072.
|
Automobile - China Weekly: PV Sales Up 16% yoy Last Week, Beating Estimates
China’s PV insurance registrations grew by 16% yoy during 25 Nov-1 Dec 24. China’s PEV wholesale shipments grew 51% yoy in Nov 24. The buoyant sales growth was driven by trade-in subsidies. However, China EVs are moving down the price curve, and the favourable policies for EVs are being rolled back. China’s vehicle export growth slowed to 11% yoy in Oct 24, due to a slowdown in the overseas EV markets. Maintain MARKET WEIGHT. Top BUYs: Geely, Fuyao, and Desay SV.
|
|
UOB KAYHIAN |
LIM & TAN |
|
Consumer – Malaysia Clouded Outlook
Mixed signals prevail as the steep minimum wage hike is offset by stronger spending; despite an uptick in commodities prices, margins appear intact for now. The sector offers a 2024/25 earnings growth at 4.6%/8.9% respectively, and valuations that are near -1.0SD to its five-year mean. However, the sector’s defensiveness may translate to underperformance against the broader market. These confluences of factors underline our MARKET WEIGHT stance on the sector. Top picks: F&N and Mr DIY.
|
The Business Times reported that property tycoon Gordon Tang and his wife Celine have made a mandatory conditional cash offer to acquire all the units of Suntec REIT ($1.17, up 1 cent) at S$1.16 per unit in cash. At its last traded price of $1.17, Suntec REIT is capitalized at $3.4 billion and trades at 0.6x price to book and 5.2% div yield. Bloomberg consensus 1 year target price of $1.24 implies a potential upside of 6%. We note that the mandatory general offer was made solely to comply with Rule 14.1 of the Take-over Code, and that the offer price of $1.16 is at a deep discount to its NAV of $2.07/share. The offer is also lower than the current share price of Suntec REIT by 1 cent. We recommend shareholders “Not to Accept” the offer. |
|
MAYBANK KIM ENG |
MAYBANK KIM ENG |
|
YTL Power (YTLP MK) Data centre visit
Commendable construction progress A visit to YTLP’s Kulai site on 3 Dec reaffirms the commendable progress achieved thus far with regards to data centre construction. We continue to view YTLP’s risk-reward favourably. Reiterate BUY with an unchanged SOP-based TP of MYR4.70. Potential re-rating catalysts include 1) affirmation of Wessex’s recovery over the medium-term, and 2) positive progress on its AI compute business.
|
Pavilion REIT (PREIT MK) Adding two hotels to portfolio
NPI yield of 7%; maintain BUY PREIT has proposed to acquire two hotels operated and managed by Banyan Tree Hotels & Resorts for a total of MYR480m. We are positive on the deal, as it offers EPU and DPU accretion of 0.7%/4.6% in FY25/26E respectively, assuming 100% new placement units to fund the acquisitions. We raise our FY25/26E core net profit forecasts by 4%/8% respectively, and lift our DDM-TP to MYR1.72 (+4 sen), based on an enlarged share base.
|
