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CGS CIMB |
UOB KAYHIAN |
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Sembcorp Industries Value acquisition
■ We lift our EPS by 2% for FY25-27F to incorporate the higher Senoko stake, assuming SCI takes on 50% from 2Q25F onwards. TP raised to S$8.14. ■ The latest increase in Senoko’s stake at S$137m implies an estimated 1.2x FY24 P/E, or 0.15-0.2x FY24 P/BV. ■ A 50-70% stake in Senoko would raise SCI’s attributable operational power capacity in SG to 2.5GW-3GW (from 2GW). Deal to be completed by 2Q25F. ■ We include SCI as one of our country top picks, with stronger-than-expected optimisation with Senoko, gas sales and RE contracts as near-term catalysts.
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STRATEGY – SINGAPORE Alpha Picks: Adding OTEK, VALUE, DFI; Removing CD, CENT, RSTON, UMS.
Driven by our small-mid cap picks, our Alpha Picks portfolio outperformed in Mar 25, increasing 3.4% mom on an equal-weighted basis and beating the STI by 1.4ppt. For 1Q25, our portfolio did not do as well as it underperformed the STI by 5.1ppt on an equalweighted basis, due largely to the banking sector which reported strong 2024 results.
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LIM & TAN |
MAYBANK KIM ENG |
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We highlight the key points from Capitaland Investments’ / CLI ($2.72, up 0.02) just released FY2024 annual report: For 25 years, CapitaLand Group has been a builder—of properties, investment strategies, and long-term value. Our 2021 restructuring sharpened our focus, making CapitaLand Investment (CLI) a real asset manager. As we mark CapitaLand Group’s 25th anniversary this year, our commitment remains unchanged: delivering sustainable growth and compounding returns for those who place their trust in us. At $2.72, CLI is capitalized at $13.6bln and trades at undemanding valuations with all in yield in excess of 5%, and Bloomberg consensus 1 year target price of $3.50 implies upside potential of 28%. We like the asset light and high growth business model of CLI and also strong balance sheet allowing them sufficient debt headroom to capitalize on market dis-locations going forward. “Accumulate on Weakness”.
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ASEAN Internet Scenario analysis: Grab acquires GoTo in cash deal
Grab-GoTo merger remains talk of the town There have been numerous media reports in the past weeks of a potential merger between Grab and GoTo. Some reports have even suggested Grab is looking to raise USD2b cash to fund the acquisition of GoTo. While we are not privy to any merger discussions, we analyze the impact on the companies involved by assuming Grab acquires GoTo in a cash deal (in whole or in part). Acquisition of Gojek would be the most favourable scenario for Grab, leading to maximum synergies while preserving balance sheet strength. Gojek+fintech would be the second-best scenario, as it would help Grab’s financial services business to scale up faster besides opening new growth segments like BNPL. We see limited synergies between Grab’s and GoTo’s e-commerce business and this could lead to a notable loss in balance sheet strength if Grab acquires all of GoTo.
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| OCBC | MAYBANK KIM ENG |
Summary of Nanofilm Technologies International Ltd (NANO SP) ReportNanofilm, a leader in nanotechnology solutions in Asia, has faced challenges due to a digital downturn, inflation, and supply chain disruptions. Despite this, the company has expanded beyond China and launched a new business unit, Sydrogen, to develop hydrogen economy solutions. Its proprietary coating technology and large market potential support long-term growth. The company showed signs of financial recovery in 3Q24, but further consistent improvement is needed to strengthen investor confidence. Recommendation: HOLD.
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Malaysia Strategy Mar 2025: Equity Fund Flows
MYR10b foreign net sell in 1Q25 Foreign selling was heavy in March at MYR4.6b net (Feb: -MYR2.2b; Fig. 3) on uncertainties relating to US’ tariff moves. This represented the 6 th consecutive month of negative foreign outflow from MY equities, and it was also the largest monthly outflow since Feb 2020 at MYR5.6b then, due to the pandemic lockdown. Foreign net sell since Oct 2024 (last 6 months) topped MYR17.7b, and MYR10b for 2025-YTD (Jan-Mar). Foreign holdings in MY equities retraced to a new low of 19.3% (Dec 2024: 19.7%) since early-2007 when we started tracking monthly data - Fig. 5.
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