ANALYSTS SAY: Buy, Sell, Hold (10 June)

UOB KAYHIAN

mm2 Asia (MM2 SP)
FY22: Growing Immunity To COVID-19, Recovery On Track

mm2 Asia reported headline PATMI loss of S$35.8m in FY22, narrowing from its S$90.8m loss from FY21. FY22 revenue grew 50.2% yoy as the group’s business operations recovered. The cinema and concert segments have reached inflection points where business is ramping up while the core production business experiences growing demand. The group is exploring options to refinance its maturing debt which may include an IPO/divestment of its Cathay cinema business. Maintain BUY. Target price:
S$0.115.

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Banking – Malaysia
1Q22 Performance Underpinned By Lower Provisions

The sector delivered a commendable 7% qoq earnings growth on the back of positive operating JAWS and lower provisions. We believe the sector has further legs, despite outperforming the FBMKLCI index by 9% ytd given the expectation of a robust 19% earnings growth in 2023, relatively attractive valuations and dividend yields. Maintain OVERWEIGHT. HLBank remains our top sector pick given its solid provision buffers
and liquidity position.

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CGS CIMB

CGS CIMB

Top Glove Corporation
Record-low quarterly profits from weak ASP

■ 9MFY8/22 core net profit was below expectations, declining 96% yoy to RM287m (63% of our and 55% of Bloomberg consensus full-year estimates).
■ Despite a potential uptick in ASPs, we foresee weaker qoq results due to margin compression from higher operating costs and increase in input costs.
■ Maintain Reduce, with a lower TP of RM1.00 (24x CY23F P/E).

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PTT Exploration & Production
Leveraging on higher oil price

■ With the tight global crude market, we lift our oil price forecasts to
US$103/bbl in 2022F and US$90.0/bbl in 2023F.
■ We expect PTTEP’s gas selling prices to increase from 2H22F as oil prices rise. Reiterate Add on PTTEP with a higher DCF-based TP of THB196. 

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BYD Company (1211 HK)
Secures Battery Supply Contract From Tesla, Lift Target Price To HK$365.00

BYD recently confirmed that the company will supply batteries to Tesla. We raise estimates on 2022-24 external EV battery sales for BYD by 25-40% to 16GWh/40GWh/70GWh respectively and lift 2022-24 EPS estimates by 6-16% to factor in the battery supply contract with Tesla. As for the EV business, May sales grew 250% and 8%, beating estimates, while new BEV model Seal is seeing strong order flows.
Maintain BUY. Raise target price from HK$325.00 to HK$365.00.

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Hana Microelectronics
China operations to recover as curbs ease

■ Hana’s reduced output in China should be offset by higher sales in Thailand and the US. We project 2Q22F core NP of THB381m (-51% yoy, -5% qoq).
■ As China continues to roll back restrictions on most parts of Shanghai, we expect Hana’s production to gradually improve from Jun 2022F onwards.

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