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CGS CIMB |
CGS CIMB |
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Food Empire Holdings Ltd FY24F hurt by higher coffee prices
■ 1Q24 revenue (US$117.5m, -2.6% qoq, +14.5% yoy) was in line with ours/Bloomberg consensus expectations, at 26% of full-year forecasts. ■ Given rising coffee prices, Food Empire plans to adjust its pricing strategy to mitigate the higher costs. ■ Reiterate Add, but lower TP to S$1.73 as we expect margin pressure from higher coffee prices.
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SEA Ltd Off to a strong start
■ 1Q24 was a beat on both revenue and EBITDA as Shopee delivered +36% yoy GMV growth while Garena returned to positive growth, led by Free Fire. ■ We think Shopee can return to adj. EBITDA positive in 2Q24F, led by further commission hikes, cost reduction and higher live-commerce unit economics. ■ Reiterate Add with a higher TP of US$88 on a normalising competitive landscape for the ASEAN e-commerce industry
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CGS CIMB |
PHILLIP SECURITIES |
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Frencken Group Ltd On track to meet FY24F expectations
■ 1Q24 results in line with expectations, with revenue at 25%/24% of our/ Bloomberg consensus FY24 forecasts, and net profit at 21%/19%. ■ Frencken reiterated its guidance that 1H24F revenue will be comparable to its 2H23 revenue. ■ Reiterate Add, with an unchanged S$1.70 TP based on 14.2x FY25F P/E, as Frencken’s semicon segment drives net profit growth over FY24-26F.
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StarHub Limited Mobile competition intensifying
1Q24 results were within expectations and management full-year guidance. FY24 revenue and EBITDA were 23%/22% of our FY24 estimates. Service EBITDA was up 0.7% YoY to S$108.4mn excluding D’Crypt which was disposed of in February 2024. Earnings were pulled down by a contraction in mobile and entertainment revenue.
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| PHILLIP SECURITIES | PHILLIP SECURITIES |
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ComfortDelGro Corp Ltd Zig platform led the recovery
1Q24 results were within our expectations. Revenue and PATMI were 25%/20% of our FY24e forecast. 1Q24 net profit increased 24% YoY to S$40.6mn. Taxi operations enjoyed the strongest growth with a 39% YoY jump in 1Q24 earnings. Public transportation continues to earn paltry operating margins of 3%, dragged down by lower margin contract renewals in Australia. 1Q is typically the weakest seasonally.
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Silverlake Axis Ltd Higher OPEX hurt earnings
3QFY24 earnings of RM23.3mn were below our estimates. 9MFY24 earnings were at 62% of our FY24e. The 33% YoY dip in earnings came from higher-than-expected cost of sales and OPEX despite an increase in total revenue. 3QFY24 recurring revenue comprising maintenance and enhancement services, insurance ecosystem transactions and services, and retail transactions processing revenue grew 10% YoY, while non-recurring revenue comprising software licensing, software project services and sale of system software and hardware products rose 42% YoY. Higher cost of sales (+53% YoY) and operating expenses (+9% YoY) dragged down earnings. Order backlog of RM180mn going into the rest of FY24 with the total deals pipeline at RM1.2bn.
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