Singapore Equities Strategy - RHB Invest 2022-12-20: Staying Positive In 2023

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(SGX:)

Singapore Equities Strategy - Staying Positive In 2023

• We are positive on Singapore, which continues to be a safe haven despite the slower GDP growth and high inflation in 2023. A continued recovery in the services sector on the back of sustained travel demand and resilient domestic demand should offset the manufacturing slowdown. Manufacturing and exports will likely see a recovery in 2H23.
• Singapore should deliver double-digit EPS growth, thanks to strong growth from banks. The Straits Times Index’s (STI) low P/E is reflecting investor concerns about the sustainability of the strong EPS growth forecast and potentially, a recession, which is not the base case.

Top Glove - RHB Invest 2022-12-15: Bleeding Heavily; Maintain SELL

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TOP GLOVE CORPORATION BHD (SGX:BVA)

Top Glove - Bleeding Heavily; Maintain SELL

• Top Glove started off FY23 (Sep 2022 to Aug 2023) with another consecutive loss-making quarter since 4QFY22, no thanks to the ongoing demand-supply imbalance, which led to slow order replenishment by customers.
• While the ASP normalisation trend continues to taper off, we expect headwinds such as escalated gas tariffs and subdued industry utilisation rates to continue to weigh on Top Glove’s profitability in the near term.

Singapore Exchange - RHB Invest 2022-12-13: Derivatives Volumes On The Rise; NEUTRAL

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange - Derivatives Volumes On The Rise; NEUTRAL

• Singapore Exchange (SGX)’s implied FY23F (Jun) securities daily average value (SDAV) and the derivatives daily average volume (DDAV), based on the first five months of data, are tracking our forecast. While SDAV improved m-o-m, the y-o-y weakness has persisted. If this weakness continues, there could be downside risks to our FY23 estimate.

Singapore Banks - RHB Invest 2022-12-09: FY23 ROE To Trend Higher On NIM Tailwinds

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DBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11)

Singapore Banks - FY23 ROE To Trend Higher On NIM Tailwinds

• After much volatility between April and September, Singapore banks – DBS, OCBC & UOB are approaching the end of 2022 with a decent 7% gain in share prices, outpacing the STI’s 4% rise.
• While 2023 is expected to be a challenging year, we believe banks should continue to outperform the broader market, given the prospects of ROE improvement being driven by a further NIM expansion.

Singapore Banking Monthly - Phillip Securities 2022-12-05: Interest Rates Climb While Loans Growth Slows

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DBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11) SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Banking Monthly - Interest Rates Climb While Loans Growth Slows

• November 3M-SORA was up by 41bps m-o-m to 2.69%. 3M-SORA is up 87bps in 2022-to-date.
• Singapore domestic loans grew 2.75% y-o-y in October, below our estimates, while Hong Kong’s domestic loans declined 2.70% y-o-y in October. CASA balance stable at 21.1%.
• Maintain OVERWEIGHT on banking sector.
  • We remain positive on banks. DBS, OCBC & UOB's dividend yields are attractive at 5% with upside surprise due to excess capital ratios. We expect bank NIMs to rise another 34bps in 4Q22.
  • SGX is another beneficiary of higher interest rates.

BRC Asia - Phillip Securities 2022-12-05: Earnings Ahead, 1H23 To Be Impacted By “Heighted Safety”

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BRC ASIA LIMITED (SGX:BEC)

BRC Asia - Earnings Ahead, 1H23 To Be Impacted By “Heighted Safety”

• BRC Asia (SGX:BEC)'s FY22 net profit was ahead of our expectations at 112% of our FY22e forecasts. Revenue was in line at 99% of FY22e. Earnings were above expectations as higher-than-expected volume moved despite the “Heightened Safety” period imposed.
• $11mil net reversal for onerous contracts made. With steel rebar prices declining ~20% in 2H22, BRC Asia benefitted from write-backs. Gross profit margins improved 500bps for the period.

City Developments - Phillip Securities 2022-12-06: Hospitality Lifts Overall Profitability

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CITY DEVELOPMENTS LIMITED (SGX:C09)

City Developments - Hospitality Lifts Overall Profitability

• Copen Grand Executive Condominium (EC) fully sold within a month of launch. The recent launch of its 639-unit EC was well received. We estimate the Group achieved a comfortable ~25% profit margin on the project.
• City Developments's hospitality segment continues to benefit from pent-up demand. RevPAR surged 110% y-o-y, driven by increases in room rates and occupancy in Singapore, US and London.

SATS - Phillip Securities 2022-12-07: Further Funding Clarity To Reduce Overhang

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SATS LTD. (SGX:S58)

SATS - Further Funding Clarity To Reduce Overhang

• SATS has provided more clarity on its funding structure for the Worldwide Flight Services (WFS) acquisition. We believe the added clarity will further reduce the overhang on the stock. With access to an acquisition bridge facility and the rights issue underwritten, we do not expect the discount for the rights to be steep.

Singapore Exchange (SGX) - Phillip Securities 2022-12-08: Growth = Derivatives Volumes + Pricing + Treasury Income

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange (SGX) : Growth = Derivatives Volumes + Pricing + Treasury Income

• Singapore Exchange (SGX)'s securities volume softening while derivatives volumes trending at 10% growth rate, and derivatives pricing climbing to record levels.
• Pick up in treasury income to accelerate in FY23 as higher interest rates kick in. We estimate Treasury income to rise at least 8% y-o-y in FY23.

StarHub - Phillip Securities 2022-12-08: More DARE, Less PLUS Until FY24

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STARHUB LTD (SGX:CC3)

StarHub - More DARE, Less PLUS Until FY24

• Under StarHub (SGX:CC3)’s DARE+ transformation (2022-26) to reduce cost and create new revenue streams, S$310mil of investments are required from FY22-24e. Around S$75mil has been spent with the bulk (~S$150mil) to be spent in FY23e. EBITDA is expected to return to the FY21 baseline of S$500mil by FY24 (FY22e: S$415mil).
• The 3-5 month delay in project implementation and higher cost in cloud infrastructure will elevate the operating cost and Capex in FY23e. We have not modelled the higher cost pending FY23e guidance, but there is upside risk.

Thai Beverage - Phillip Securities 2022-12-05: Bounce In Beer And Property

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THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage - Bounce In Beer And Property

• Thai Beverage (SGX:Y92)'s FY22 earnings were above expectations due to higher associate earnings. FY22 revenue and PATMI at 101%/109% of our FY22e forecasts. Associate earnings almost doubled from a gain on disposal and reversal of write-down on properties held for sale.
• Beer volumes recovered strongly post-lockdown in Vietnam. Total volumes jumped 54% y-o-y with EBITDA doubling. Final dividend up 20% y-o-y to Bt0.60 (S$0.023).

Singapore Exchange - RHB Invest 2022-12-08: Rolling Forward Our Valuation Basis

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange - Rolling Forward Our Valuation Basis

• We make small adjustments to Singapore Exchange (SGX)'s securities daily average value (SDAV), derivatives daily average volume (DDAV), and treasury income estimates for FY23 (Jul 2022 to Jun 2023). We also roll forward our valuation basis from FY23F EPS to 12 months' forward EPS.

Japan Foods - RHB Invest 2022-12-07: Expect Strong F&B Demand To Sustain; Keep BUY

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JAPAN FOODS HOLDING LTD. (SGX:5OI)

Japan Foods - Expect Strong F&B Demand To Sustain; Keep BUY

• As per SingStat, the restaurant industry in Singapore has continued to register strong (+61.1%) y-o-y sales growth in October. While we expect the rate of growth to moderate, we still expect the industry to deliver positive growth in 2023.
• Japan Foods’ strong balance sheet, which has helped it to survive the pandemic, its ability to sustain strong gross margins, and its recent expansion into halal restaurant brands should continue to support strong profit growth during FY23-25.

Frasers Centrepoint Trust - RHB Invest 2022-12-05: Resilient But Not Immune

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FRASERS CENTREPOINT TRUST (SGX:J69U)

Frasers Centrepoint Trust - Resilient But Not Immune

• Frasers Centrepoint Trust (SGX:J69U)’s suburban mall portfolio is expected to stay resilient in the face of a slowing economic growth but it is not immune to inflationary pressures and rising interest rates.
• Frasers Centrepoint Trust has also seemed to have dropped out of race to acquire Mercatus malls, which we believe is not a bad news in the current challenging market conditions.

Singapore REITs - DBS Research 2022-12-02: Time To Relook At S-REITs

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Singapore REITs

Singapore REITs - Time To Relook At S-REITs

• Rebound in Nov 22 marks a possible turn in the S-REITs, as Fed hints of slower hikes starting in Dec 22; 10-year yields dip from recent highs.
• Overhang lifted for the S-REITs, as Fed nears the end of its current rate hike cycle, possibly by 1Q23.
• News emerging of a relaxation of the tight grip of China’s zero COVID-19 a source of optimism.

IHH Healthcare - UOB Kay Hian 2022-11-30: 3Q22 Sequential Improvement In Malaysia & Turkey

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IHH HEALTHCARE BERHAD (SGX:Q0F)

IHH Healthcare - 3Q22 Sequential Improvement In Malaysia & Turkey

• IHH Healthcare's 3Q22 earnings came in within our expectations, but below consensus’.
• Malaysia operations and Acibadem improved sequentially. The former marches to a full recovery while the latter’s performance was driven by markedly better revenue intensity. Operations in Singapore were muted, weighed by a melt-off in COVID-19-related contributions. Admission recovery should well anchor its earnings growth going forward.

IHH Healthcare - RHB Invest 2022-11-30: Uneven Recovery Path; Maintain BUY

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IHH HEALTHCARE BERHAD (SGX:Q0F)

IHH Healthcare - Uneven Recovery Path; Maintain BUY

• IHH Healthcare's 9M22 earnings were below expectations, mainly due to a decline in COVID-19-related revenues and weakening TRY. However, we continue to favour this stock, as we believe IHH Healthcare’s recovery remains on track given the resilient demand for healthcare.

City Developments - RHB Invest 2022-12-02: On The Right Course

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CITY DEVELOPMENTS LIMITED (SGX:C09)

City Developments - On The Right Course

• City Developments (SGX:C09)'s 3Q business updates were in line and showed continued pickup across all three market segments.
• City Developments’s strategy of deleveraging its non-core assets over last two years has placed it in a relatively better balance sheet position amid rising interest rates. Key earnings drivers continue to be its healthy unbilled sales from Singapore residential projects and hospitality segment recovery.

ComfortDelGro - RHB Invest 2022-12-01: Partnering With Gojek; Keep BUY

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COMFORTDELGRO CORPORATION LTD (SGX:C52)

ComfortDelGro - Partnering With Gojek; Keep BUY

• ComfortDelGro (SGX:C52) and Gojek are collaborating to address the driver shortage issue afflicting Singapore's point-to-point (P2P) transportation industry. As part of the collaboration, Gojek users will be able to access ComfortDelGro's taxis via the Gojek app.
• We view this positively as it should reduce the competitive intensity in Singapore's taxi industry even further. We reiterate that ComfortDelGro should see y-o-y earnings growth in 2023, owing to an improving taxi segment and increased rail ridership.

ST Engineering - RHB Invest 2022-11-30: In Line 9M22 & Strong Order Wins; Keep BUY

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SINGAPORE TECH ENGINEERING LTD (SGX:S63)

ST Engineering - In Line 9M22 & Strong Order Wins; Keep BUY

• ST Engineering’s 9M22 revenue of S$6.5bn was in line, accounting for 74% of our 2022 estimate. It reported strong order wins in 3Q22, with an outstanding order book (excluding the US marine business) of S$23.1bn at an all-time high. TransCore’s latest contract delivery is expected to start in 2024.

Thai Beverage - RHB Invest 2022-11-28: Further Recovery Ahead; Stay BUY

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THAI BEVERAGE PUBLIC CO LTD (SGX:Y92)

Thai Beverage - Further Recovery Ahead; Stay BUY

• Thai Beverage’s FY22 (Oct 2021 to Sep 2022) earnings were in line with our, but above consensus expectations, thanks to the encouraging volume recovery in beer markets whilst impact from cost inflation was also well contained.
• We foresee the recovery momentum continuing into FY23F on a further pick-up in tourism activities. We continue to like Thai Beverage as a major proxy to capitalise on the recovery, taking into account its strong market presence and brand equity.

Sembcorp Industries - Maybank Research 2022-11-25: Adding 2.27GW Of Renewables

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Adding 2.27GW Of Renewables

• Sembcorp (SGX:U96) acquired 1.7GW (2 sites) and 583MW of renewable assets in China and India, respectively. With the three acquisitions, Sembcorp’s total gross renewable capacity increases to 9.4GW, including work-in-progress assets, very close to its 10GW target by 2025.

Singapore Offshore & Marine Stocks - UOB Kay Hian 2022-11-23: Continued Healthy Demand For Production Assets, Helped By Strong Oil Prices

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KEPPEL CORPORATION LIMITED (SGX:BN4) SEMBCORP MARINE LTD (SGX:S51) YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)

Singapore Offshore & Marine Stocks - Continued Healthy Demand For Production Assets, Helped By Strong Oil Prices

• The rig market, particularly the semi-submersibles segment, has continued to gain strength in 2022 with higher utilisation and day rates. On the production side, it is notable that both of Singapore’s shipyards have won large orders in 2H22 and we expect more of such in 2023, underpinned by oil prices that will be well supported above US$100/bbl in the near to medium term.
• Our sector rating remains OVERWEIGHT, and our top picks are Keppel Corp and Sembcorp Marine.

Uni-Asia Group - Phillip Securities 2022-11-23: Locked In Attractive Freight Rates

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UNI-ASIA GROUP LIMITED (SGX:CHJ)

Uni-Asia Group - Locked In Attractive Freight Rates

• The average charter rate in 3Q22 for Uni-Asia Group (SGX:CHJ) was US$19,609/day, an increase of 37% y-o-y. We believe the jump in freight rates will drive similar growth rates for charter income. Charter income is around 85% of FY22e total revenue.
• Uni-Asia reported improvement in Hong Kong property projects in terms of units sold and construction progress.

Malaysia Smelting Corp - UOB Kay Hian 2022-11-22: 3Q22 Below Expectations

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MALAYSIA SMELTING CORP BHD (SGX:NPW)

Malaysia Smelting Corp - 3Q22 Below Expectations

• Malaysia Smelting Corp's earnings were impacted by depressed tin prices, higher operating costs amid rising inflationary pressure and lower smelting output. Malaysia Smelting Corp is expected to show a more meaningful growth in 2023 backed by stronger production and better margins from its new eco-friendly plant.

First REIT - SAC Capital 2022-11-16: 2.0 Growth Strategy Executing Well

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FIRST REAL ESTATE INV TRUST (SGX:AW9U)

First REIT - 2.0 Growth Strategy Executing Well

• First REIT (SGX:AW9U)'s 3Q22 NPI increased to S$24.1m (+26% q-o-q) while distributable amount rose to S$13.7m (+31% q-o-q) fuelled by the acquisition of 12 nursing homes in Mar22 and 2 more in Sep22 in Japan. The acquisitions are partially funded by JPY1.66b non-recourse social loan.

Singapore Exchange - RHB Invest 2022-11-23: Strong Derivatives Volume In October

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange - Strong Derivatives Volume In October

• The implied FY23F (Jul 2022 to Jun 2023) securities daily average value (SDAV) of Singapore Exchange (SGX:S68) based on the first four months of data is below our forecast. Thanks to a strong rise in derivatives volume across multiple asset classes, the implied FY23F derivatives daily average volume (DDAV) is tracking our forecast.
• There will be a downside risk to our estimate, if the ongoing softening trend in SDAV continues.

ST Engineering - RHB Invest 2022-11-22: New Toll Collection Contract In The US; Keep BUY

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SINGAPORE TECH ENGINEERING LTD (SGX:S63)

ST Engineering - New Toll Collection Contract In The US; Keep BUY

• TransCore, a US smart mobility business that ST Engineering (SGX:S63) acquired recently, announced a US$1.07bn turnkey tolling system contract for two projects in the state of New Jersey. This should further boost the expected recovery in its urban solutions & satcom security (USSS) business.

Sembcorp Industries - Phillip Securities 2022-11-22: Equity Fundraising Ruled Out

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Equity Fundraising Ruled Out

• Sembcorp Industries (SGX:U96) announced the acquisition of 830MW of renewable assets in China through a joint venture with State Power Investment Corporation (SPIC).
• The acquisition of BEI Energy and Vector Green will be accretive to earnings and diversifies the Group’s presence from north western China.
• Management ruled out equity funding to finance spate of acquisitions. We believe the latest clarification will allay concerns over an equity call.

Asian Pay TV Trust - Phillip Securities 2022-11-21: Huge Drag From Currency

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ASIAN PAY TELEVISION TRUST (SGX:S7OU)

Asian Pay TV Trust - Huge Drag From Currency

• Asian Pay TV Trust (SGX:S7OU)'s 3Q22 earnings was below expectations due to the 5% weakness in the Taiwan dollar. year-to-date22 revenue and EBITDA were at 73%/71% of our FY22e estimates. 3Q22 distribution was maintained at 0.25 cents per unit.
• FY23e distribution forecast for Asian Pay TV Trust is raised 5% to 1.05 cents, paid half yearly. Broadband enjoyed healthy 11% revenue growth, but weakness in basic cable dragged group revenue to fall 6% y-o-y.

Q&M Dental - Phillip Securities 2022-11-17: Expansion Cost Starts To Bite

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Q & M DENTAL GROUP (S) LIMITED (SGX:QC7)

Q&M Dental - Expansion Cost Starts To Bite

• Q&M Dental (SGX:QC7)'s 3Q22 earnings were below expectations. 2022-to-date revenue and PATMI were 77%/61% of our FY22e forecast. Employee expenses were higher than expected due to Acumen losses, software development expenses and higher opex from new clinics.
• Sharp 62% drop in Q&M Dental's earnings due to the absence of COVID-19 test revenue from Acumen. Acumen swung from PAT of S$4.4mil to an estimated S$0.1mil loss.

SATS - Phillip Securities 2022-11-21: Breakeven In Sight & Funding Clarity To Drive Re-Rating

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SATS LTD. (SGX:S58)

SATS - Breakeven In Sight & Funding Clarity To Drive Re-Rating

• Funding clarity to reduce overhang on the Company. SATS has provided clarity on its funding structure for the Worldwide Flight Services (WFS) acquisition by committing to a cap of $800mil on the rights issue. We modeled a 3 for 10 rights issue scenario at an issue price of $2.29 (~15% discount to last close) to arrive at a TERP of $2.60.
• SATS's profitability is at a key inflection point with breakeven in 2HFY23. We expect the Group to turn profitable by FY24e with the resumption of dividend in the same year.

Silverlake Axis - Phillip Securities 2022-11-16: Project-Related Revenue Surges

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SILVERLAKE AXIS LTD (SGX:5CP)

Silverlake Axis - Project-Related Revenue Surges

• Silverlake Axis (SGX:5CP)'s 1Q23 earnings of RM57.6mil were in line with our estimates, at 28% of our FY23e. The 64% y-o-y surge in earnings came from higher software licensing and software and hardware sales offset by lower software project services.
• Project-related revenue comprising software licensing and software project services increased 107% y-o-y due to the delivery of new software licensing deals in Indonesia and Thailand, and the ongoing implementation of two new MOBIUS contracts.

Sembcorp Marine - UOB Kay Hian 2022-11-16: Weaker-than-expected Guidance For 2H22; Medium-term Outlook Remains Bright

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SEMBCORP MARINE LTD (SGX:S51)

Sembcorp Marine - Weaker-than-expected Guidance For 2H22; Medium-term Outlook Remains Bright

• Sembcorp Marine (SGX:S51)’s 3Q22 business update contained weaker-than-expected guidance for 2H22. Though high labour costs were to blame, resulting in our increased loss estimates for 2022, it will not be an issue after end-22.
• Nevertheless, we maintain our bullish view on Sembcorp Marine as the offshore marine industry remains strong, backed by high commodity prices, with the added benefit of the completion of the merger with KOM in 1Q23.

Sembcorp Industries - UOB Kay Hian 2022-11-15: Full Steam Ahead With Two Renewables Acquisitions

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Full Steam Ahead With Two Renewables Acquisitions

• Sembcorp announced the acquisition of 390MW of net solar assets in China and a portfolio of 583MW of solar and wind assets in India. On a gross installed capacity basis, this would increase the company’s capacity from 7.2GW to 8.5GW which is not far from its 2025 target of 10GW.
• Sembcorp Industries disclosed that these assets were bought at “low teens P/E multiples” which we view as fair.

Yangzijiang Shipbuilding - UOB Kay Hian 2022-11-15: Valuations Starting To Look Stretched; Downgrade To HOLD

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YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)

Yangzijiang Shipbuilding - Valuations Starting To Look Stretched; Downgrade To HOLD

• Yangzijiang Shipbuilding (SGX:BS6)’s 3Q22 update showed solid project execution with continued timely delivery of its customers’ ultra-large containerships.
• After its strong share price performance, Yangzijiang’s valuations now appear stretched – and with its yard capacity full until at least 2H25, further new-order wins may not drive Yangzijiang's Share Price higher.

Singapore Exchange - UOB Kay Hian 2022-11-17: Monthly Performance Largely In Line, Forex & Commodities Outperformed

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SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Exchange - Monthly Performance Largely In Line, Forex & Commodities Outperformed

• For Oct 22, Singapore Exchange (SGX)'s SDAV softened slightly while DDAV rose sharply, driven by the equity, forex and commodities segments.
• SGX’s equity index futures surged from higher FTSE China A50 index futures volumes. The forex and commodities derivatives continued their outperformance as volumes reached record highs.

Bumitama Agri - RHB Invest 2022-11-15: Closing In On A Record Year; Maintain BUY

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BUMITAMA AGRI LTD. (SGX:P8Z)

Bumitama Agri - Closing In On A Record Year; Maintain BUY

• Bumitama Agri's 9M22 results were in line with our but significantly above Street’s estimates. 4Q earnings will be boosted by inventory drawdowns in 4Q22, in our view, while FFB growth should remain robust.
• Bumitama Agri’s valuation of 5.4x CY23F P/E is unwarranted, even below -1 standard deviation of its historical mean and at the low end of its peers’ range of 5-9x.

Singapore Stock Strategy - UOB Kay Hian 2022-11-14: An Unexpected Singles’ Day Present From China

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(SGX:)

Singapore Stock Strategy - An Unexpected Singles’ Day Present From China

• China unexpectedly delivered a Singles’ Day present in announcing an adjustment to its COVID-19 pandemic control measures. While the measures may be small at present, it is important that the Chinese government is signalling that it is taking preliminary steps to re-open the economy. This could have medium-to long-term positive ramifications on Singapore-listed stocks.
• SGX listed stocks with meaningful exposure to China include CapitaLand Ascott Trust, CapitaLand Investment, DFI Retail Group, Keppel Corp, Raffles Medical, Sasseur REIT, Sembcorp, SIA, Wilmar and Yangzijiang Shipbuilding.

ComfortDelGro - RHB Invest 2022-11-17: Sustaining Y-o-y Growth; Maintain BUY

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COMFORTDELGRO CORPORATION LTD (SGX:C52)

ComfortDelGro - Sustaining Y-o-y Growth; Maintain BUY

• ComfortDelGro (SGX:C52)’s 3Q22 business update confirmed our assessment that it will continue to report y-o-y earnings growth. However, inflationary pressures from higher fuel and wage costs and a mismatch in the timing of cost increases vs being compensated for cost inflation translated into margin compression that quarter.
• ComfortDelGro should book y-o-y earnings growth in 2023, thanks to an improving taxi segment and higher rail ridership. Valuation is compelling after the recent corrrection of ComfortDelGro's Share Price.

Sembcorp Industries - Phillip Securities 2022-11-15: Acquisition Of Another 1.38GW Of Renewable Assets

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SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Acquisition Of Another 1.38GW Of Renewable Assets

• Sembcorp Industries announced the acquisition of 1.38GW of renewable assets in China and India.
• The acquisition of BEI Energy and Vector Green will be accretive to earnings upon completion in 1Q23 as it will be funded by debt and internal cash. China and Indian assets are supported by mid-to long-term power purchase agreements (PPAs) that will ensure stability in earnings and cash flows.

ComfortDelGro - UOB Kay Hian 2022-11-15: 3Q22 Slightly Below Expectations; Better Fundamentals Dragged By Higher Costs

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COMFORTDELGRO CORPORATION LTD (SGX:C52)

ComfortDelGro - 3Q22 Slightly Below Expectations; Better Fundamentals Dragged By Higher Costs

• Despite reporting higher 9M22 revenue (+8% y-o-y) and PATMI (+31% y-o-y), ComfortDelGro’s 9M22 results were slightly below our expectations as margins start to compress. The Public transport services segment reported higher revenue but rising wage costs and lower bus service revenue impacted profitability.

SATS - OCBC Investment 2022-11-11: PATMI Loss Narrowed In 2QFY23

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SATS LTD. (SGX:S58)

SATS - PATMI Loss Narrowed In 2QFY23

• No interim dividend was declared.
• Proposed rights issue of not exceeding S$800m for the acquisition of WFS.
• More details on funding plan will be announced prior to the EGM.

SATS' 2QFY23 results beat expectations

First Resources - RHB Invest 2022-11-15: Benefitting From The Tax Levy Holiday

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FIRST RESOURCES LIMITED (SGX:EB5)

First Resources - Benefitting From The Tax Levy Holiday

• 9M22 numbers came in strongly above expectations, as First Resources (SGX:EB5) benefited from the tax levy holiday and forward hedges.
• Given yesterday’s positive reaction in First Resources's share price, we deem valuations as fair – trading in line with its 5-9x peer range. Nevertheless, First Resources's dividend yield at 50% payout should lend support, implying 9% FY22F yield.

UMS - Maybank Research 2022-11-14: 1H23 Secured, Upgrade To BUY

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UMS HOLDINGS LIMITED (SGX:558)

UMS - 1H23 Secured, Upgrade To BUY

• UMS (SGX:558) reported a record 3Q22, with both revenue and PATMI exceeding consensus and our estimates (9M22 PATMI at 88% of FY22E revenue).
• UMS’s 6-month outlook remains robust with a large order backlog from its key customer. Management said that the slightly lower forecast given by its key customer recently is unlikely to significantly impact its performance. As a result, we expect a strong 4Q22E and a better FY23E and raise our PATMI estimates by 13.4% for FY22E and 13.8% for FY23E, resulting in a higher target price of S$1.34 (from S$1.20) pegged to a lower 8.0x (from 8.5x) FY23E P/E.

StarHub - Phillip Securities 2022-11-14: Will See Stars In 4Q22

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STARHUB LTD (SGX:CC3)

StarHub - Will See Stars In 4Q22

• StarHub (SGX:CC3)'s 2022-to-date revenue and EBITDA were in line with expectations at 73%/83% of our FY22e estimates. 3Q22 revenue was up 14% y-o-y with the acquisition of MyRepublic, but EBITDA was down 18% y-o-y to S$109mil from higher costs in EPL content and IT infrastructure spending. Only selected financials are provided in StarHub's 3Q22 update.

SingTel - Phillip Securities 2022-11-14: Bharti Shines In Earnings & Dividends

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SINGTEL (SGX:Z74)

SingTel - Bharti Shines In Earnings & Dividends

• SingTel (SGX:Z74)'s 1HFY23 (Apr to Sep 2022) results were within expectations. Revenue and EBITDA were 48%/46% of our FY23e estimates. A special dividend of 5 cents was announced following the S$2.2bn proceeds from sale of Bharti stake.
• Underlying earnings rose 2% to S$1bn supported by an 8% growth in associate earnings to S$813mil led by a turnaround in Bharti. There was a large drag in earnings from NCS with EBIT down 49% to S$53mil.

PropNex - Phillip Securities 2022-11-14: Expect Growth To Return In 2023; Upgrade To BUY

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PROPNEX LIMITED (SGX:OYY)

PropNex - Expect Growth To Return In 2023

• PropNex (SGX:OYY)'s 3Q22 result was a huge earnings beat. 2022-to-date revenue and PATMI were 96%/96% of our FY22e forecast (excluding one-offs). We underestimated PropNex’s market share gains especially in private resale, the increase in agent size and rise in selling prices.
• Rental remained the fastest growing category. Revenue jumped 76% y-o-y to $48mil. The rental market has been extremely tight this year with borders reopening.

IREIT Global - RHB Invest 2022-11-14: Relatively Well Shielded For Rate Hikes; Stay BUY

SGinvestors.io

IREIT GLOBAL (SGX:UD1U)

IREIT Global - Relatively Well Shielded; Stay BUY

• IREIT Global (SGX:UD1U)’s 3Q22 update shows that it continues to rise above market challenges, with occupancy rate growth and rental rate escalations kicking in. While its occupancy rate should drop by ~11% in 4Q22 due to the exit of a tenant, management is in talks with several tenants and expects to backfill some space.

Singapore Banking Monthly - Phillip Securities 2022-11-11: NIM & NII Surge Across The Board

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DBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11) SINGAPORE EXCHANGE LIMITED (SGX:S68)

Singapore Banking Monthly - NIM & NII Surge Across The Board

• October 3M-SORA/3M-SIBOR was up by 44bps/78bps m-o-m to 2.28%/3.63%, the highest m-o-m increase since 1998.
• In the 3Q22 results, Singapore banks’ NII rose 42% y-o-y as NIM improved by 47bps with loans growth of 6%. Fee income was a drag, declining 14%. Banks raised their FY22e NIM guidance.
• Singapore domestic loans grew 4.38% y-o-y in September, tracking our estimates, while Hong Kong’s domestic loans declined 1.81% y-o-y in September.
• Maintain OVERWEIGHT. We remain positive on banks. Bank dividend yields are attractive at 5% with upside surprise due to excess capital ratios.