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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Singapore Air Transport – Jan25 Cargo remains the bright spot
Aviation sector delivered mixed performance in Dec24 amid an uncertain outlook for the year. SIA's share price saw a slight rebound after the release of better-than-expected Dec24 statistics. SATS closed the month in negative territory as the market adopted a more cautious view of the impact of US tariffs, while CAO ended the month flat.
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Singapore REITs Monthly A better year ahead for S-REITs
▪ The S-REITs Index fell 1.3% in December 2024, closing 2024 return at -11.8%. The top performer for the month was Frasers Hospitality Trust (FHT SP, non-rated), gaining 39.3%, while the worst performer was Manulife US REIT (MUST SP, non-rated), falling 13.6%. The hospitality sub-sector was the top performer in December, gaining 5.3%, while the worstperforming sub-sector was overseas industrial, falling 3.4%.
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UOB KAYHIAN |
UOB KAYHIAN |
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Food Empire Holdings (FEH SP) Setting The Stage For Diversification
We visited FEH’s new office at Asia Green on 16 Jan 25. FEH will be releasing its 2H24 results on 26 Feb 25 after trading hours. We estimate net profit at US$22m-23m and fullyear net profit at US$46m-47m. Expect margins to be softer yoy due to stubbornly high coffee prices. FEH is effectively targeting its identified high-growth markets, with a new coffee facility starting construction in Vietnam. Maintain HOLD with a 10% higher target price of S$1.10 (S$1.00 previously) as we roll over our valuation to 2025.
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JD.com (9618 HK) 4Q24 Preview: Strong Growth Outlook; JD To Lead In 2025 Trade-in Programme
JD lifted 4Q24 top-line growth guidance to 9% yoy from 6% yoy, better than our expectations. JD also saw strong user growth and GMV growth in 4Q24 as it is well positioned to capture the continuation of the trade-in programme. This bodes well with JD’s continuous ROI-focused investment in its user-centric strategy and supply chain efficiency to boost earnings growth. Maintain BUY with a higher target price of HK$200.00 (US$52.00).
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Singapore Healthcare FY24 preview: Are we near the inflection point?
Watching out for signs of turnaround in 2025 The sector has been in the doldrums for almost 2 years since profits peaked in FY22 along with the gradual cessation of Covid-19 services. Despite border reopening, medical tourism has failed to pick up the slack amid keen regional competition, high costs and a strong SGD. This led to normalisation of revenues for private healthcare providers, exacerbated by margin compression attributed to negative operating leverage and inflationary pressures. While we think earnings have probably bottomed and valuations are looking more palatable, we need to see visible growth catalysts to drive stock re-rating. Maintain NEUTRAL.
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Singapore REITs Feedback and preview
Room for rotation into REITs; sector drivers intact In this note, we summarise investor feedback on our recent sector outlook and PREIT initiation as well as preview upcoming results. Investors concur REITs offer relative value and, coupled with expected rate cuts, can outperform. Pushback on PREIT centered on overseas M&A and our view of it being expensive. We expect distribution to decline on the year for the reporting period led by hospitality and stable asset values in Singapore. We look forward to guidance on reversion and cost of debt. Top picks: CDLHT, CICT, CLAR, CLAS, FEHT, LREIT, MINT, MLT and OUEREIT.
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