|
CGS CIMB |
UOB KAYHIAN |
|
Oiltek International Ltd Executing its value up strategy
■ Oiltek continues its efforts to improve its shareholders returns. On 17 Feb 2025, it announced a proposed upgrade to the Mainboard of SGX. ■ On 24 Feb 2025, Oiltek entered into a HOA with PT Kilang Pertamina Internasional with the aim of developing a recurrent revenue stream. ■ A 2-for-1 bonus issue was proposed on 3 Mar 2025. We reiterate our Add call, and S$1.43 TP.
|
Telecommunications – Singapore 4Q24 Results Largely In Line; Expect Continued Earnings Growth In 2025
For 4Q24, the sector’s 18% yoy earnings growth was within expectations, driven by Singtel’s regional associates, strong performance from the enterprise businesses and better overall cost discipline. We expect decent earnings growth for 1Q25, backed by strong earnings visibility, cost-saving initiatives and robust Enterprise business outlook. We like Singtel for its regional exposure and value-unlocking initiatives, Starhub’s attractive yield and NetLink’s defensive earnings. Maintain OVERWEIGHT.
|
|
UOB KAYHIAN |
LIM & TAN |
|
China Merchants Bank (3968 HK) 2024: Improving Fundamentals But Valuation Is No Longer Attractive
CMB posted a 1.2% yoy growth in net profit, in line with the preliminary results. NIM was above expectations due to better funding cost managements but fee income sluggishness persists. Meanwhile, asset quality was mixed as retail asset quality continued to be under pressure. Although fundamentals are improving, we decide to downgrade to HOLD as its valuation and dividend yield remain relatively unappealing at this juncture, with no major catalysts ahead. Target price: HK$49.00.
|
Sinarmas Land ($0.275, trading halt) announced that Lyon Investments (entity controlled by the Widjaja family) has made a voluntary unconditional cash offer for all the shares in Sinarmas Land at S$0.31/ share. This offer is not subject to any conditions and is unconditional in all respects. This offer values Sinarmas Land at S$1.3bln and valued at 0.4x PB. In view of the cheap take-over offer and that the offer is not final, we advise shareholders to “HOLD” on to their shares and “NOT ACCEPT” their unconditional offer for Sinarmas Land shares. |
| LIM & TAN | MAYBANK KIM ENG |
|
Geo Energy Resources Limited ($0.325, up 0.015) is pleased to announce that it has entered into a conditional shares sale and purchase agreement to acquire an additional 15% effective interest in TRA for US$40.8 million, which will increase its effective interest in TRA up to approximately 75.07% upon completion. TRA’s producing coal mine consists of coal reserves that have low sulfur and low ash content. The high demand for this type of coal comes from domestic and international markets, particularly Asia, and commands a premium above the coal market index price. At 32.5 cents, Geo Energy is capitalized at $460mln and trades at an undemanding forward consensus PE ratio of 4-5x (consensus earnings of US$90mln) while price to book is 0.7x and dividend yield is 3%. We believe an “Accumulate” recommendation is justified for Geo Energy given that Bloomberg consensus 1 year target price is 64 cents, almost doubling from its current share price level of 32.5 cents while earnings and dividend trajectory for the company is expected to be “exciting” for FY2025 given that production volumes are expected to expand significantly on expanded production volumes while the new just announced acquisition will provide incremental earnings. Validation of their new road infrastructure with potential injection of US$50-100mln by their substantial shareholder with a potential independent valuation of US$1.5bln by year end could be another re-rating catalyst.
|
IHH Healthcare (IHH MK) Türkiye under fire?
Maintain BUY call and MYR7.97 SOTP-TP Imamoglu’s arrest (link) has intensified political uncertainty in Türkiye, accelerating TRL depreciation. We expect MFRS 129 adjustments to compress reported earnings but not core earnings. We remain largely positive on Acibadem’s non-TRL income stream and growth in IHH’s other key segments such as India and Malaysia. Unrelated to this event, we trim FY25E-FY27E earnings by -3%/-2%/-2% post-housekeeping. Maintain BUY with an unchanged SOTP-TP of MYR7.97.
|
