|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
Oiltek International Ltd Working with the giants
▪ On 26 February, Oiltek announced a heads of agreement with Indonesian state oil company Pertamina to enter a joint venture to develop a pre-treatment unit (PTU) and supply feedstock. There are potentially three revenue streams – constructing the PTU plant and recurrent revenue from partial ownership of the PTU and sourcing feedstock for the PTU
|
Wee Hur Holdings Ltd More visibility from PBSA sale
▪ FY24 revenue/adj. PATMI fell below our expectations, at 86%/78% of our FY24e estimates. Building construction (~32% of FY24 revenue) segment’s 2H24 revenue/operating profits fell 67%/19% YoY, as tenders remain competitive. Order book fell by 21% from June 2024.
|
|
UOB KAYHIAN |
UOB KAYHIAN |
|
Delfi (DELFI SP) 2024: Earnings Miss; Elevated Cocoa Prices Expected To Drag On Growth in 2025
Delfi’s 2024 earnings of US$34m (-27% yoy) missed our expectations, forming 91% of our full-year forecast. This was due to higher-than-expected promotion spending aimed at increasing market share in the competitive environment. A final dividend of 1.18 US cents/share was declared, bringing total 2024 dividend to 3.25 US cents/share (or a decent 6% yield). High cocoa prices continue to pressure profitability. Maintain HOLD with a lower target price of S$0.82 (S$0.86 previously).
|
Plantation – Malaysia Feb 25: End Stock Remains Low Due To Lower Output
MPOB’s Feb 25 data reported a lower end stock due to weaker production, exports as well as imports. CPO prices in the immediate term remain supported by market tightness, but the seasonal production ramp-up, favourable soybean supply outlook and shifting demand towards cheaper soybean oil may exert downward pressure on prices subsequently. Our BUY recommendations are Hap Seng Plantations (HAPL MK/BUY) and SD Guthrie (SDG MK/BUY). Maintain MARKET WEIGHT on the sector.
|
| MAYBANK KIM ENG | MAYBANK KIM ENG |
|
Malaysia Property New chapter for familiar visions
Staying selective amid market volatility The unexpected US AI chip restrictions triggered a selloff, particularly in DC-linked property stocks, erasing partial gains from the past 2 years and contributing to KLPI's underperformance (-12% YTD) versus KLCI (-5%). In a volatile, risk-off market, investors should focus on earnings delivery and execution. Key sector drivers remain JSSEZ, asset crystallisation, and industrial properties, while longstanding projects like MVV 2.0 may rekindle interest, especially if the KL-SG HSR project is revived. We maintain a NEUTRAL stance, with BUYs on ECW, SDPR, and SPSB.
|
Indonesia Banks A step in the right direction
Cautiously POSITIVE on banks Lending by Indonesian banks remained strong, as it increased by 10.3% YoY in Jan’25 after growing by 11.8% in 2024. Moreover, the central bank’s interest rate has been reduced by 25bps to 5.75% since FY24, which we believe should gradually ease liquidity. However, as liquidity remains tight currently, we expect lending growth to moderate in 1Q25E. The Indonesian banks we favour (in this order) are: BRIS, BBCA, BBNI, BBRI and BMRI.
|
