| CGS CIMB |
CGS CIMB |
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Tencent Doubling share buyback in FY24F
■ Tencent’s 4Q23 and FY23 revenue grew by 7% and 10% yoy to Rmb155bn and Rmb609bn, respectively, largely in line with our expectations. ■ Non-IFRS net profit grew by 44% and 36% yoy to Rmb42.7bn and Rmb157.7bn in 4Q23 and FY23, respectively, slightly better than we expected. ■ We forecast revenue to grow 10.4% yoy and non-IFRS NP to increase 18.2% yoy in FY24F, driven by continuous growth of online ads and recovery of gaming business. ■ The company also announced that it plans to double its share buyback amount from FY23’s HK$49bn to HK$100bn in FY24F (c.5% of its current market cap). ■ Reiterate Add with a higher DCF-based TP of HK$478.
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Sunway Construction Group Bhd Third data centre win, first in Cyberjaya
■ Clinches RM748m data centre project in Cyberjaya for US MNC, its third data centre win. ■ Another two data centre wins on the cards given the current ECI projects ■ Reiterate Add and SOP-derived TP of RM3.44
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UOB KAYHIAN |
UOB KAYHIAN |
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Marco Polo Marine (MPM SP) Tailwinds From Favourable Charter Rates And Maiden Expansion Into Korea
As oil and gas activities pick up and oil prices remain favourable, MPM will continue to enjoy good demand and favourable charter rates for its OSVs, which are at a nine-year high. The low fleet growth in the OSV industry will keep day rates elevated. As new offshore wind projects begin, MPM is primed to capture growth opportunities in the APAC region with its OSVs and new CSOV. It will also be making its maiden charter in Korea starting in 4Q24. Maintain BUY with a higher target price of S$0.086
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EcoWorld Development (ECW MK) 1QFY24: Results In Line; Achieves RM1.26b Sales For 4MFY24
ECW's 1QFY24 net profit increased 24% yoy. Sales remains robust with RM1.26b achieved in 4MFY24 (thanks to strong Johor sales), which we think will result in ECW exceeding its own full-year sales target of RM3.5b. Maintain BUY with a higher target price of RM1.94 (from RM1.54). Our target price implies 16-19x FY24-26F PE (lower than its 10-year average of 32x; lower than peers’ current average of 22x FY24F PE) and 1.11-1.18x FY24-26F P/B (largely around its 10-year average).
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| LIM & TAN | LIM & TAN |
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China Aviation Oil’s (S$0.895, up 1 cent) (CAO) FY23 net profit rose 75.5% yoy to US$58.9mln, above expectations at 117% of our forecast. While revenue declined 12.4% to US$14.4bln from lower oil prices and trading volume, gross profit rose 43% to US$50.6mln on the back of higher gains from jet fuel supply. Capitalized at S$769.9mln, CAO trades at 7.9x FY24F P/E and 0.6x P/B. After several years of a weakened aviation industry, CAO is expected to see an increase in jet fuel supply volumes and earnings growth ahead. We have lifted our previous FY24F profit estimates by 10% to account for stronger jet fuel demand, translating into 23% earnings growth for FY24F. Maintain BUY with a higher target price of S$1.24, pegged to 11.0x FY24F P/E (10% discount to 5-year average P/E of 12.3x)
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Marco Polo Marine / MPM ($0.062, up 0.003) is pleased to announce that its Taiwanese subsidiary company, PKR Offshore (“PKRO”), has secured the Asia-Pacific Crew Transfer Vessel (“CTV”) framework agreement with Siemens Gamesa for projects spanning Taiwan and Korea. This landmark agreement, effective from 2024 to 2026, with an option to extend to 2030, aiming to support Siemens Gamesa’s ambitious offshore wind projects in Taiwan and Korea, granting them access to PKRO’s plan to increase its fleet of CTVs in the coming years. At 6.2 cents, MPM is capitalized at $233 million and trades at 7x forward consensus earnings forecast of $28 million. Price to book is 1.3x while dividend yield is 1.6%. Bloomberg consensus 1 year target price is 7.7cents, implying a potential return of 25%. Maintain “Accumulate”. |
