ANALYSTS SAY: Buy, Sell, Hold (14 Nov)

PHILLIP SECURITIES

Singapore Telecommunications Ltd
Bharti shines in earnings and dividends

SINGAPORE | TELECOMMUNICATIONS|1H23 RESULTS 14 November 2022
 1H23 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.

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StarHub Limited
Will see stars in 4Q22

SINGAPORE | TELECOMMUNICATIONS|3Q22UPDATE 14 November 2022

 YTD22 revenue and EBITDA were in line with expectations at 73%/83% of our FY22e estimates. 3Q22 revenue was up 14% YoY with the acquisition of MyRepublic, but EBITDA was down 18% YoY to S$109mn from higher costs in EPL content and IT infrastructure spending.

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PHILLIP SECURITIES

PropNex Ltd
Expect growth to return in 2023

SINGAPORE | REAL ESTATE (AGENCIES) | 3Q22 RESULTS
 3Q22 result was a huge earnings beat. YTD22 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.

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UMS Holdings (UMSH SP)
1H23E secured, U/G to BUY

Record 3Q22 and 9M22
UMS reported a record 3Q22, with both revenue and PATMI exceeding consensus and our estimates (9M22 PATMI at 88% of FY22E revenue).
Management’s 6-month outlook remains robust with a large order backlog from its key customer. It 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 TP of SGD1.34 (from SGD1.20) pegged to a lower 8.0x (from 8.5x) FY23E P/E. We upgrade to BUY from HOLD due to the more secure outlook. 

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An Unexpected Singles’ Day Present

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. Stocks with meaningful exposure to China include CLAS, CLI, DFI, KEP, RFMD, SASSR, SCI, SIA, WIL and YZJSGD.

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Food Empire Holdings (FEH SP)
3Q22: Earnings Beat On Strong Demand And Easing Cost Pressures

3Q22 core earnings of US$12m (+274% yoy/+45% qoq) was above expectations, while 9M22 core earnings of US$31m formed 97% of our full-year estimates. Margins are improving with FEH’s improved product mix and higher ASPs. Also, high freight and raw material costs which started in 2020 are easing. We believe earnings growth will continue as demand in all markets remains strong. We raise 2022 and 2023 core earnings by 14% and 12%. Maintain BUY. Target price: S$0.78.

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