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CGS CIMB |
CGS CIMB |
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Sembcorp Industries Expanding market share in Singapore
■ SCI announced that it has signed a sale & purchase agreement with ENGIE Global Development B.V to acquire its 30% stake in Senoko Energy. ■ The purchase price was undisclosed. Senoko generated net profits of S$178m/S$511m in FY22/FY23. ■ Using YTD USEP average of S$172/MWh, we estimate Senoko’s annual profit at c.S$150m, or a c.S$40m-50m (4%-5%) contribution to SCI. ■ Maintain Add on SCI and TP of S$7.32, still based on 12.5x FY25F P/E, in line with regional peers.
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Rubber Gloves Tailwinds from more punitive tariffs on China
■ The modified import tariffs by USTR on Chinese gloves should translate into a surge in sales volume for Malaysian glove makers. ■ Top Glove CEO thinks any EPS upside could be capped by inventory dumping into non-US markets, stronger RM, and production constraints. ■ Reiterate Underweight on the sector.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Digital Core REIT (DCREIT SP) Impending Acquisition At Huge Valuation Discount Provides Lucrative Yield
DCREIT has exercised its option to acquire additional interest in a Frankfurt data centre at an attractive discount of 17.8% to the refreshed valuation and 1H24 NPI yield of 5.7%. Based on existing market conditions, acquiring 10% of the Frankfurt data centre provides DPU accretion of 1.7%. If market conditions improve, acquiring a 40% stake enhances DPU accretion to 7.0%. DCREIT provides 2025 distribution yield of 6.1% (KDCREIT: 4.3% and MINT: 5.3%). Maintain BUY. Target price: US$0.88.
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Malaysia Banking System liquidity is improving
NIMs could surprise positively System liquidity is improving, judging from trends in CASA deposits, the 3- month KLIBOR and LCRs at Islamic banks, paving the way for NIMs potentially surprising on the upside. An ideal situation would be for NIMs to return to pre-pandemic levels which could hypothetically pave the way for earnings upgrades of 1-16%. We maintain a POSITIVE on the sector, with BUYs on AMMB, CIMB, PBK, RHB, HLBK and HLFG.
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| MAYBANK KIM ENG | CGS CIMB |
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GoTo Gojek Tokopedia (GOTO IJ) Partnership with Alibaba Cloud will open new opportunities
GOTO in milestone agreement with Alibaba Alibaba and GOTO sealed an MoU whereby: 1) GOTO is committed to using Alibaba Cloud, and 2) Alibaba will retain about 88.5b series A shares (7.4%) in GOTO for the next five years. We believe this is an opportunity for GOTO to upgrade its technology in the AI era. Alibaba Cloud is one of the leading data center ecosystems, and more affordable than most. We maintain our BUY and TP of IDR95 for GOTO. Our TP implies 7.0x P/S and 3.4x P/BV for FY25E.
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Property - Overall Home prices to rebound in 2025F
■ We assess that HK property stocks will outperform in the next 12 months on US rate cuts ahead and improvement in individual stock fundamentals. ■ We expect HK home prices to rebound by 3%/5% in 2025F/26F, after having fallen c.30% in the past three years. ■ We estimate potential housing demand from mainlanders is equivalent to 6- 8x of HK new home sales in 2024F and should push residential rents up. ■ We reiterate our positive view on HK residential segment. We like SHKP and HLD among developers, and prefer Link, Kerry and HLP as high-yield plays.
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