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LIM & TAN |
MAYBANK KIM ENG |
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The Straits Times reported that Singapore Post (S$0.565, up 0.5 cents) has increased the price of its postage-paid product ahead of the peak holiday season, with each package now costing 50 cents to 80 cents more.
It will cost more to send festive gifts using smartpac envelopes and boxes this Christmas. This is due to significant increases in essential operational costs, including materials, production and manpower, a SingPost spokeswoman said in response to queries from The Straits Times.
Singapore Post’s market cap stands at S$1.3bln and currently trades at 20x forward PE and 0.9x PB, with a dividend yield of 2%. Our target price stands at S$0.64, representing 13.3% upside from current share price. The increase in fees will improve the viability of its Singapore operations while further outlet closures and sale of non-core assets could be in the works. We continue to await the review and reset of SingPost strategy following the completion of the sale of its Australian business. We maintain an “Accumulate on Weakness” rating on SingPost.
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Thailand Property Signs of condo sales recovery
Maintain NEUTRAL sector view; Top Pick SIRI We maintain a NEUTRAL view on the Thai property sector. While residential pre-sales may have bottomed, we believe the pace of recovery will be slow due to the lack of effective government stimulus. The one area we are bullish is condos, as we expect demand to pick up in FY25. SIRI is our top sector pick as we forecast strong FY25 pre-sales growth of 10% YoY (vs sector +4% YoY) and FY25E dividend yield of 9.2% (possibly the highest in the property sector).
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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Vietnam Strategy Year Ahead 2025: Drawing strength from within
Maintain bullish view on VNIndex (target of 1,500pts) We expect Vietnam’s leaders may turn Trump’s tariff threats into opportunities by accelerating infrastructure development and the country’s green and digital transformation in 2025 and beyond. Vietnam is likely to use more fiscal policies than monetary tools next year. We see more harmonized growth (earnings and price) across sectors in 2025 and we have a VNIndex target of 1,500pts by end-2025. We like HPG, FPT, VCB, TCB, STB, KDH, GMD, MCH, PNJ and FRT.
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TRUE Corp (TRUE TB) TOT lawsuit not yet final
Reiterate BUY despite legal hiccup On 17 Dec 2024, the Supreme Admin. Court dismissed TRUE’s petition to revoke a penalty related to a revenue-sharing dispute under its longdistance domestic call (TA 1234) agreement with TOT. We estimate potential negative impact at THB12.7b, or THB0.37/sh, so a share price decline of more than THB0.37/sh represents an opportunity to buy TRUE shares. TRUE remains our top sector pick (DCF-based TP of THB13.8) on the back of 81% FY25E core profit growth and its expected dividend payment in 2H25E.
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