| PHILLIP SECURITIES |
PHILLIP SECURITIES |
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17LIVE Group Limited Back to growth mode
We expect earnings growth in FY24e to be driven by a jump in virtual liver streamers, expansion in live commerce revenue and aggressive streamlining of R&D and other expenses. Monthly Active Users (MAU) will begin its recovery with a growth rate of around 10% in FY24e from new content offerings in SE Asia, product enhancements and reinvestment into marketing.
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Oiltek International Ltd Beneficiary of the big push for sustainable fuel
Oiltek provides design, engineering, maintenance, and turnkey solutions for refineries and processingplantsin the vegetable oils industry. These includethe major agricultural commodities such as palm, soybean, and rapeseed.
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UOB KAYHIAN |
UOB KAYHIAN |
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Higher-for-a-lot-longer Interest Rates Some Companies To Suffer, Some To Benefit
Recent comments by US Fed officials raise the spectre of zero interest rate cuts should the US economy remain robust. We view Singapore corporates’ debt levels as manageable across the companies we cover, with free cash flow generation forecast to remain strong in 2024. Nevertheless, some companies’ profit margins could erode in 2024 should interest rate cuts be deferred into 2025, eg WIL, CDL, CLI, SCI and KEP. Companies with high cash piles (eg VALUE, GENS and YZJ) could benefit.
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Maxis (MAXIS MK) Compelling Risk-reward; Earnings Momentum Remains Healthy
We see emerging value as the stock trades at 8x EV/EBITDA, -2SD from its mean valuation. Stepping into 2H24, we see an improving risk-reward profile for Maxis as Malaysia draws close to a potential dual wholesale network. We came away from a recent meeting more sanguine on the near-term prospects of the group. Anchored by strong management, we expect the group to deliver a healthy three-year earnings CAGR of 8%. Upgrade to BUY with a DCF-based target price of RM4.20.
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| CGS CIMB | LIM & TAN SECURITIES |
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Velesto Energy Berhad Downgrade as Saudi Aramco cuts back
■ A number of jack-up (JU) rig drilling companies has had their rig contracts suspended by Saudi Aramco in recent days. ■ These rigs may find their way to SE Asia and other regions, which may cap or even pressure utilisation rates and daily charter rates (DCR) globally. ■ Velesto’s share price has almost quadrupled since mid-2022; hence, we downgrade from Add to Hold, with an unchanged DCF-based TP of 31 sen.
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We initiate a BUY recommendation on Marco Polo Marine ($0.067, Undemanding Valuations. MPM today trades at 8.7x FY24PE (Ex- |
