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UOB KAYHIAN |
UOB KAYHIAN |
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LHN (LHN SP) 1HFY24: Earnings Beat On Co-living Growth; Robust Pipeline Ahead
LHN registered 1HFY24 core earnings of S$13m (-15% yoy), ahead of our expectations by 22% on improved co-living margins. Revenue surged 27% yoy, on the back of 91% yoy higher co-living revenue. LHN also announced a similar interim dividend of 1.0 S cents/share, translating to an annualised dividend yield of 6%. We continue to like LHN for its robust pipeline, co-living portfolio and capital recycling strategy. Maintain BUY with an unchanged target price of S$0.40.
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Gaming – Malaysia Waiting For Its Moment
1Q24 results for gaming companies under our coverage continue to reflect a vibrant consumption trend, accelerating tourist visitations and spending surge. Although share price momentum is lagging the broad market, we believe the sector’s earnings growth, undervalued financial matrixes and lush dividend yields still resonate well with our investment foundations. Maintain OVERWEIGHT. Top picks: GENM, Magnum and RGB.
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UOB KAYHIAN |
PHILLIP SECURIITES |
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Market Strategy 2H24: Building Blocks In Place
• Rebound on policy clarity. The MSCI China index has made impressive gains of 23.3% since bottoming out in late-Jan 24, bringing ytd performance to 8.2%. This is a remarkable turnaround, as Asia ex-Japan is only up 6.9% ytd. This comes after the government gave clear indications that it remains firmly behind the healthy development of capital markets and efforts to revive the property market will no longer be clouded by concerns of re-igniting the bubble.
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Singapore Banking Monthly Interest rates inch up
May’s 3M-SORA was up 2bps MoM to 3.68% and 2bps higher than the 1Q24 average. Furthermore, the 3M-SORA rose by 6bps YoY. 3M-HIBOR was up 13bps MoM to 4.67%, reversing the decline of 16bps in April. Singapore domestic loans inched up 1.5% YoY in April, the largest YoY increase since October 2022. We expect low-single-digit growth for 2024 as loan growth is expected to continue to be positive going into 2H24. The CASA balance was maintained at 18.3% (Mar24: 18.3%).
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| LIM & TAN | |
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Sembcorp Green Hydrogen Pte. Ltd, a wholly-owned subsidiary of Sembcorp Industries / SCI ($5.06, down 0.03), has signed a Heads of Terms (HoT) with Sojitz Corporation and Kyushu Electric Power Co., Inc. (the Consortium), paving the way for the Consortium to finalise a definitive green ammonia offtake agreement. This builds on the Memorandum of Understanding signed by the Consortium and announced on December 18, 2023, to explore supplying Japan with green ammonia produced in India (the project). We continue to like SCI’s push towards clean/renewable energy business developments as this is the main objective of global government’s push. SCI is spear-heading and leading corporate Singapore in that direction. With its reasonable PE of 10x and consensus 1-year target price of $7 (implying potential 42% upside), we maintain an “Accumulate” rating on SCI.
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