| UOB KAYHIAN | CGS CIMB |
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NanoFilm Technologies International (NANO SP) Conference Call Takeaways; Expect Further Re-rating
We recently hosted a conference call with NanoFilm’s CFO. The key takeaways are: a) FCVA technology opens up opportunities in new markets; b) growth would be driven by larger wallet share and organic growth; and c) growth in medium term will be supported by additional capacity from second Shanghai plant. Further improvement in profitability and wider analyst coverage should help NanoFilm re-rate upwards. We maintain BUY and raise our target price by 11% to S$4.52.
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Top Glove Corporation Undervalued at current prices
■ We deem 1QFY8/21 net profit of RM2.6bn (+2,198% yoy) to be in-line at 24.7% of our FY21F estimate but above Bloomberg consensus. ■ TOPG should record stronger results in quarters ahead, backed by: i) higher ASPs, ii) increase in production capacity, and iii) higher economies of scale. ■ We reiterate our Add call with a lower TP of RM8.90 (16x CY22 P/E).
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MAYBANK KIM ENG |
RHB |
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ASEAN Macro Year Ahead: 2021 Recovery & Reopening
2021: Recovery and Reopening After the worst recession since the Great Depression, the global economy is on track for a healthy recovery. We forecast global real GDP rebounding by +5.1% in 2021 after contracting by 4% in 2020. A Covid vaccine has sparked optimism, but the rollout and impact will be uneven across the world. Global monetary conditions will remain accommodative, underpinned by near zero interest rates and QE polices in the advanced economies.
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DBS (DBS SP) ROE Firmly On Road To Recovery; Keep BUY
Maintain BUY, new SGD30.00 TP from SGD25.20, 18% upside with 3.5% FY21F yield. We believe DBS is on its way to a sustained ROE recovery in FY21-22F. Aside from lower credit costs, the pick-up in economic activities will underpin continued improvements in fee income growth and loan demand. Strategies to manage excess liquidity and deposit repricing should also help support NII. The acceleration in digital adoption, spurred by COVID-19, also places DBS ahead of peers. At 1.05x FY21F P/BV against ROE of 9.5%, the current valuation remains compelling.
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Check out our compilation of Target Prices
