|
PHILLIP SECURITIES |
CGS CIMB |
|
Thakral Corporation Ltd Multiple drivers for growth
• With expanding retail operations in Greater China, a broader DJI product range in South Asia, continued growth in over-50s living through GemLife in Australia, and strategic investments in India (Bharat Skytech, Skylark Drones, and Nespresso), Thakral is wellpositioned to deliver long-term value and sustainable growth. While geopolitical risks persist, U.S. tariffs are not expected to impact the Group’s results materially
|
CATL-H Global expansion on track; initiate with Add
■ CATL raised HK$40.6bn from its HK listing, with 90% of net proceeds to be used to grow its Hungarian plant’s power battery and ESS battery capacities. ■ We think CATL’s global expansion plans are on track, and its continued share gains in overseas markets will boost its margin profile, in our view. ■ We initiate coverage on CATL-H with an Add call and HK$391 TP, a 5% discount to our TP for its A-share (12.8x FY26F EV/EBITDA).
|
|
MAYBANK KIM ENG |
LIM & TAN |
|
Singapore Banks
Softer April loan growth
Loan growth YoY tepid, at low single-digit
April 2025 MAS statistical data reflect total loan growth decelerating to +3.4% YoY, with total loans coming in at SGD1,316bn. This is the lowest loan growth for 2025 thus far, after peaking at +4.2% YoY in March. In our view, this low single-digit trend should continue throughout 2025E, despite some Fed rate cuts expected to be in the mix. With this in mind, we expect the three local banks’ loan growth forecast to remain in-line with this low single-digit trend. Despite resilient 1Q25 earnings across the banks, we believe upside visibility remains limited with loan growth losing momentum due to tariff-related macro uncertainty. Maintain NEUTRAL.
|
Ley Choon ($0.067, down 0.3 cents) announced their 2HFY25 results and reported that revenue marginally decreased by approximately S$0.2 million or 0.4% to S$66.1 million for the second half-year ended compared to the corresponding period ended 31 March 2024 of S$66.3 million. The decrease in revenue was mainly attributed to the lower construction activities in certain pipe laying projects. However, the decrease in revenue was partially offset by the higher revenue from cable laying projects, airport works and sales of construction materials. Ley Choon’s market cap stands at S$100.8 mln and currently trades at 7x FY25 PE and 1.4x PB, with a dividend yield of 4.5%. There are currently no analysts covering Ley Choon. Ley Choon is yet another example of Singapore’s booming construction sector, which we continue to be positive on. |
| LIM & TAN | DBS RESEARCH |
|
We view the resilient gold prices and demand as beneficial for CNMC Goldmine (S$0.425, unchanged), a gold mining company with operations in Malaysia. CNMC’s market cap stands at S$172mln and trades at 10.8x forward P/E and 2.7x P/B, with a dividend yield of 4.0%. While gold prices have retreated slightly from its highs of c.USD3,500/oz in April, it remains 26% higher since the start of the year. CNMC has completed the expansion of its CIL plant in April, increasing processing capacity of gold-bearing ore by 60% to 800 tonnes per day. Sky-high gold prices, coupled with an increase in gold output as targeted by the company, will render 2025 a year to watch. We maintain BUY on CNMC Goldmine.
|
DFI Retail Group has divested its 22.2% stake in Robinsons Retail Holdings Inc (RRHI) for PHP50/share, a 36% premium to the market price and 14% above its carrying value. The total deal is worth PHP15.8bn (~USD283mn) and is part of RRHI’s share buyback programme, funded by internal resources and external borrowings. While the divestment was expected, the premium price signals strong execution by management. The earnings impact is minimal—RRHI is expected to contribute ~USD17mn to core earnings in FY25, similar to FY24, with additional upside from interest income on the sale proceeds. Strategically, this move aligns with DFI’s goal to focus on operations it directly manages. It enhances management’s credibility in value-accretive deals and supports future ROCE (Return on Capital Employed) and TSR (Total Shareholder Return) objectives. Rating: Maintain BUY; Target Price: USD3.00 |
