ANALYSTS SAY: Buy, Sell, Hold (11 Nov)

UOB KAYHIAN

Genting Singapore (GENS SP)
3Q22: Recovery Largely On Track; Visible Capital Upside

GENS’ 3Q22 results were within expectations and recorded the best quarterly revenue (87% of pre-pandemic levels) since the pandemic broke out. The resilient performance was attributed to a strong luck factor, steep recovery of demand and tourist arrivals, as well as better operating capacity. We remain optimistic on GENS’ sharp earnings recovery which will allow capital gains and restoration of lush dividend yields following better capital management efforts. Maintain BUY. Target price: S$1.08.

Read More ...

PropNex (PROP SP)
3Q22: Better-than-expected Results Set Up For A Strong Finish To 2022

PropNex reported strong 3Q22 results that exceeded our expectations. The company mentioned that the negative effects of the recent Sep 22 cooling measures have not been felt yet, implying a slightly weaker 4Q22 performance. However, 2023 will be a bumper year of new launches. We believe that the Singapore property market will likely moderate and not suffer a meaningful decline even in the face of economic headwinds in the medium term. Maintain BUY. Target price lowered to S$1.92.

Read More ...

UOB KAYHIAN

Singapore Telecommunications (ST SP)
1HFY23: Results In Line, Special Dividend Declared

For 1HFY23, Singtel reported 2.3% yoy higher underlying PATMI of S$1b. Higher roaming revenue, coupled with increased take-up of higher-value 5G plans, led to strong operational performances from the Singapore consumer segment and Optus. Despite higher opex costs, NCS’ double-digit revenue growth trajectory remained intact while the group enterprise segment remained resilient. Regional mobile associates outperformed, largely led by Airtel. Maintain BUY with a higher target price of S$3.15.

Read More ...

Singapore Banking Monthly
NIM and NII surge across the board

SINGAPORE | BANKING & FINANCE | UPDATE
 October 3M-SORA/3M-SIBOR was up by 44bps/78bps MoM to 2.28%/3.63%, the highest MoM increase since 1998.
 In the 3Q22 results, banks’ NII rose 42% YoY as NIM improved by 47bps with loans growth of 6%. Fee income was a drag, declining 14%. Banks raised their
FY22e NIM guidance.

Read More ...

Singapore Telecommunications (ST SP)
Minor speed bumps

1HFY23 missed consensus; Maintain BUY
1HFY23 PATMI at SGD1.2b (+23% YoY) missed our/consensus expectations, accounting for just 46% of full-year estimates. Bottomline growth was lifted by strong performance from Airtel and net exceptional gains of SGD165m in 1HFY23. Moving beyond provisions for the cyberattack on Optus and NCS’ higher opex, we see further upside in roaming revenue,
new growth engine potential and continued strong contribution from regional associates. Our FY23-25 forecasts for Singtel’s core business are unchanged. Reiterate BUY and SOTP-based TP of SGD3.15 for Singtel, with 20% potential upside. 

Read More ...

PropNex Ltd (PROP SP)
Holding steady

3Q22 above expectations; retain BUY
Propnex's 3Q22 PATMI rose 21.9% YoY to SGD17.6m, beating our and street expectations. This brought 9M22 earnings to SGD44.6m (-2.5% YoY) and forms about 92% of MIBG/consensus full-year estimates. We therefore raise our FY22E EPS by 12% on better-than-expected transaction volumes but leave our FY23-24E forecasts intact amid the current macro uncertainties. Maintain BUY with an unchanged TP of SGD1.95 (still based on 14x FY23E P/E), and backed by an attractive 8% dividend yield.

Read More ...