ANALYSTS SAY: Buy, Sell, Hold (5 Sept)

PHILLIP SECURITIES

Singapore Telecommunications Ltd
Momentum in mobile prices

SINGAPORE | TELECOMMUNICATIONS| UPDATE 05 September 2022
 At the recent investor day, a key highlight was the recovery in mobile prices in Singapore, Australia, India and Indonesia from the benign competition and the return of roaming revenue.

 Business segments with softer outlooks include AIS and NCS. Softer AIS outlook is due to intense competition, and for NCS it is the near-term ramp-up in headcount and staff
cost

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Koda Ltd
Demand lull in the near term

SINGAPORE | CONSUMER (FURNITURE) | 2H22 RESULTS
• FY22 PATMI was within expectation, excluding the losses from the Vietnam plant fire incident. FY22 revenue and PATMI were 107%/97% of our forecast. Final dividend was cut 25% YoY to 0.75 cents.
• The outlook is cautious. Furniture inventories in the US are piling up from overstocking triggered by supply chain worries and softer consumer demand which is shifting to services.

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CGS CIMB

Tiong Woon Corp
A leading ASEAN crane operator

■ Tiong Woon is the 23rd largest crane operator globally, operating across 13 countries in Asia and the Middle East.
■ The group recorded consecutive yoy EPS growth (76% CAGR) in FY18-22. Share buybacks commenced on 30 Aug 2022, first time in their listing history.
■ Management believes that it stands a good chance of participating in the Hengyi Petrochemical project in Brunei (project size: c.US$13.7bn).

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STRATEGY – SINGAPORE
Alpha Picks: Add Nanofilm, Remove AEM, Venture And ComfortDelGro

Our Alpha Picks outperformed the STI in Aug 22, increasing by 2.9% on a market cap weighted basis vs the market’s 0.3% increase. For Sep 22, we add Nanofilm as we believe new product launches and market expansions will lead to a strong 2H22. We have also taken out AEM as we expect a weaker 2H22, and removed ComfortDelGro due to its recent exclusion from the STI. Additionally, we have taken profit on Venture as we see no near-term catalysts. 

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Advanced Info Service (ADVANC TB)
Measuring the impact of buying TTTBB and JASIF

Not much to worry about TTTBB-JASIF deal: BUY
If ADVANC fails to obtain reduction in rental payment to JASIF, the acquisitions of TTTBB and JASIF would represent 3% downside to ADVANC’s FY23E net profit. On the other hand, 15-31% decreases in rent to JASIF
would imply 1-4% upside to FY23E net profit. We believe the market has already priced in the lack of decrease in rental payment to JASIF. Reiterate BUY with THB244 TP, which does not factor in the impact of TTTBB-JASIF deal (pending approvals from TTTBB and JASIF approvals on 23 Sep).

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Hong Leong Bank (HLBK MK)
Chengdu in lockdown

TP lowered
With the city of Chengdu going into lockdown, we anticipate a possible negative reaction to Bank of Chengdu’s (BOCD; 601838 CH, Not Rated) share price. We trim HL Bank’s FY23-25E net profit forecast by 3-7% to reflect potential MTM losses from its convertible bonds in BOCD and lower earnings growth at BOCD. BUY maintained but with a lower TP of MYR23.60 from MYR24.90 previously. 

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