NANOFILM TECHNOLOGIES INTL LTD (SGX:MZH)
CSE GLOBAL LTD (SGX:544)
IFAST CORPORATION LTD. (SGX:AIY)
AEM HOLDINGS LTD (SGX:AWX)
CITY DEVELOPMENTS LIMITED (SGX:C09)
Singapore Market Strategy - 5 Stocks Worthy Of Further Deep Dive Post 2Q21
- We highlight 5 SG stocks whose share price had reacted negatively post their 2Q21 results and may be worth further deep dive & study –
- NanoFilm Technologies (SGX:MZH) (-36%),
- iFAST Corporation (SGX:AIY) (-11%),
- CSE Global (SGX:544) (-7%),
- AEM (SGX:AWX) (-4%), and
- City Developments (SGX:C09) (-16% from year-to-date peak).
- Of these, CSE Global (SGX:544) and City Developments (SGX:C09) are in our country top picks.
5 SG stocks may be worth to bottom fish
- We note that the positive-to-negative earnings surprise ratio of Singapore companies edged slightly negative this quarter at 0.95x (1Q21: 2x), with 19 above: 20 below: 36 in line vs our expectations.
- We highlight 5 stocks that reacted significantly post their 2Q21 results and may be worth a deep dive to bottom fish.
Nanofilm Technologies (SGX:MZH)
- NanoFilm's share price tanked 36% post release of its 1H21 results which showed an earnings miss (due to lower margin product mix and one-off new costs). We think there could be opportunity to bottom fish if one believes NanoFilm Technologies is worth 35x CY21F P/E or 26x CY22F P/E, assuming it keeps its 3-year EPS CAGR of 28%.
- Supply chain risks remain.
- NanoFilm (SGX:MZH) is covered by analyst William Tng & Darren Ong.
- See reports
IFAST Corporation (SGX:AIY)
- Lower trading volumes amidst risk-off sentiment. Limited scope for further trading turnover expansion. iFAST guides that winning the Hong Kong’s electronic Mandatory Provident Fund Platform (eMPF) subcontract would have very material impact from FY23F onwards.
- iFAST Corporation (SGX:AIY) is covered by analyst Andrea Choong.
- See report: iFAST Corporation - CGS-CIMB Research 2021-08-02: Factoring In eMPF Contributions.
CSE Global (SGX:544)
- CSE Global's earnings missed due to higher administrative costs. But we believe strong GPM from its infrastructure division could offset the weaker margin in its energy division. With Temasek being a 25% shareholder of CSE Global, we see potential collaboration/ synergy for CSE Global with other Temasek-linked companies that are exposed to the infrastructure/ communications sector, namely ST Engineering (SGX:S63) and SingTel (SGX:Z74).
- CSE Global (SGX:544) is covered by analysts Kenneth Tan & Lim Siew Khee.
- See report: CSE Global - CGS-CIMB Research 2021-08-12: Infrastructure Is The Key.
AEM (SGX:AWX)
- AEM reported weaker earnings in 2Q12, as guided by management. The company expects demand to be strong from late-3Q21F into FY22F. One can gradually accumulate as there are multiple potential re-rating catalysts in FY22F. These include
- successful mass volume production of a next-generation equipment for its key customer;
- announcement of new customer wins;
- accretive M&As given the recent new shares placement to Temasek and assumption of higher debt on its balance sheet.
- These could pose upside earnings risks to our FY22 earnings forecast for AEM.
- AEM (SGX:AWX) is covered by analyst William Tng.
- See report: AEM Holdings - CGS-CIMB Research 2021-08-06: ADD Into FY22; Temasek To Be The Single Largest Shareholder.
City Developments (SGX:C09)
- City Developments reported net loss due to higher financing costs and tax expenses, and asset enhancement initiatives (AEIs) affecting rental income.
- There are signs of recovery in City Developments's hospitality division in addition to 2,000 units of residential housing pipeline in Singapore to be progressively recognised in FY22-23F.
- City Developments (SGX:C09) is covered by analyst Lock Mun Yee.
- See report: City Developments - CGS-CIMB Research 2021-08-12: On Slightly Firmer Footing.
LIM Siew Khee
CGS-CIMB Research
|
Singapore Research Team
CGS-CIMB Research
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https://www.cgs-cimb.com
2021-08-19
SGX Stock
Analyst Report
5.050
SAME
5.050
0.610
SAME
0.610
12.500
SAME
12.500
4.610
SAME
4.610
8.970
SAME
8.970
