|
PHILLIP SECURITIES |
UOB KAYHIAN |
|
Singapore Banking Monthly Loan growth reaches 21-month high
▪ August’s 3M-SORA was down 3bps MoM to 3.60%, the lowest since April 2023, and 6bps lower than the 2Q24 average. 3M-SORA has been hovering around the 3.6% range since Jan 2024. 3M-HIBOR was down 38bps MoM in August to 4.31%, a continuation from the decline of 6bps in July.
|
Offshore Marine – Singapore Unmoved And Unaffected By Poor Oil Price Sentiment
Sentiment on oil prices remains fragile with worries over lower demand and higher supply taking centre stage. However, rig day rates and utilisation rates remain robust even in the face of contract cancellations in Saudi Arabia in 2Q24 as several of the jackups have found replacement work. Importantly, Seatrium is arguably oil-price agnostic given its exposure to the lower risk, late-cycle segment of field production via its FPSO construction projects in Brazil for Petrobras. Maintain OVERWEIGHT on the sector.
|
|
UOB KAYHIAN |
MAYBANK KIM ENG |
|
Oil & Gas – Malaysia FPSO Outlook Weighed Against Energy Transition
While the FPSO industry benefits from an all-time high backlog, we think players should sharpen their focus on decarbonisation/clean energy pathways, as we foresee diverging patterns in this “new field growth” depending on various factors. For example, it seems solar and wind will not be part of Bumi Armada and Yinson Production (the FPSO arm), even though wind is officially under SBM Offshore. MISC remains as a green transportation arm though it may surprise the industry with the ZEUS Power Station.
|
Sembcorp Industries (SCI SP) Deepening footprint
Accretive 30% stake in Senoko Energy, BUY SCI agreed to acquire ENGIE’s 30% interest in Senoko Energy. Senoko has a fifth of its power generation capacity in Singapore and is a licensed gas shipper and retailer. Pricing details are not available and subject to regulatory approvals and pre-emption right of other shareholders of Senoko. The deal will be funded by cash/debt and will be accretive to profit (est. 4%). While pricing details are unavailable, the deal increases SCI’s market share, provides access to piped gas imports and is complementary to SCI’s operations. We raise our FY24 earnings estimate by 6% and TP by 9% to SGD6.0. Maintain BUY.
|
| MAYBANK KIM ENG | LIM & TAN |
|
Malaysia Aviation Winds are blowing in the right direction
Reiterate BUYs on CAPITALA and AAX The proverbial tailwinds behind the aviation sector have turned positive. The USD and fuel prices have eased markedly, lowering expenses in the process. We also gather that fares will rise following MAS’ decision to temporarily cut capacity. We maintain our CAPITALA and AAX BUY calls, earnings estimates and TPs for now but under a ‘blue sky’ scenario, we estimate that our CAPITALA and AAX FY25 earnings estimates could double if the status quo of relatively stronger MYR and lower jet fuel prices hold.
|
We highlight Daiwa House Logistics Trust’s ($0.64, unchanged) latest presentation deck to investors
Portfolio Performance: • The average exchange rate for JPY against SGD was weaker in 1H FY2024 by approximately 10% compared to 1H FY2023 • Improvement in underlying performance of the portfolio was negated by the movement in exchange rate, resulting in lower y-o-y gross revenue and net property income in SGD terms • The decline was partially offset by lower JPY-denominated expenses due to the weaker JPY, as well as higher realised exchange gains • Underlying performance of the portfolio was relatively stable, with gross rental income and net property income in JPY terms recording growth of 1.5% and 2.8%, respectively • The improvement was mainly due to the contribution from DPL Ibaraki Yuki which was acquired on 15 March 2024, partially offset by higher leasing commissions
At 64 cents, DHLT’s market cap stands at S$446mln and currently trades at 1.0x PB, with an annualized dividend yield of 7.7%. Consensus target price stands at S$0.71, representing 10.9% upside from current share price. The recent strengthening of the JPY in recent months due to a more hawkish monetary stance by the Bank of Japan may be beneficial to DHLT, although any flow through to DPUs will likely take some time due to its hedging policies |
