ANALYSTS SAY: Buy, Sell, Hold (2 Dec)

CGS CIMB

Yangzijiang Shipbuilding
More clarity on yard expansion plans

■ Key questions during our KL NDR included: yard expansion plans, postcontainership boom, margin outlook, cost control measures and dividend.
■ Re-rating catalysts for YZJSB include gross margin of above 20% and potential yard expansion if there is a strong build-up of LNG carrier orders.
■ We forecast DPS of S$0.05-S$0.07 (payout: 34-40%) for FY22-23F, translating into dividend yields of 3.6-5.2%. Reiterate Add.

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BRC Asia Ltd
A record year in FY22

■ FY9/22 was a record year: NP of S$90m (+92% yoy) above our forecasts. Final and Special DPS of 12 Scts brings FY22 dividend yield to 10%.
■ Despite a slower start, FY23F outlook remains positive, anchored on strong local construction demand and more supportive labour conditions.
■ Valuation attractive at 6x CY23F P/E and 10% dividend yield. Reiterate Add.

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UOB KAYHIAN

BRC Asia (BRC SP)
FY22: Above Expectations, Record Year And Special Dividend

BRC reported posted record-high earnings of S$90.2m (+92% yoy), backed by higher delivery volumes and elevated steel prices. Gross and net margins also expanded as steel prices started to fall, leading to net reversal of provisions. A labour supply recovery is underway as Singapore reopens and is expected to ramp up from 2QFY23 onwards. Maintain BUY with a higher target price of S$2.42 (S$2.00 previously).

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STRATEGY – MALAYSIA
3Q22 Results Wrap-up

The breadth of disappointing results narrowed in 3Q22, fundamentally supporting our view for Malaysian equities to trend up through to the start of 2023. Crucially, major macro concerns have abated for now, with easing US core inflation allowing the US Fed to moderate down its rate hike guidance, and (locally) the formation of a Unity government after GE15. Maintain end-22 FBMKLCI target at 1,550. Bet on economic reopening plays and selected technology companies.

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Indofood CBP (ICBP IJ)
3Q22: Improvement On qoq Basis With ASP Hike And Drop In CPO Prices

ICBP is affected by the weakening of the rupiah against the US dollar as it does not hedge its debt exposure and recorded Rp2.7t in forex loss in 9M22. 3Q22 core NPAT improved and came in at Rp2,124b, rising 75% yoy and 139% qoq. The drivers for the operational improvement were price hikes in Jul 22 and lower qoq CPO prices. 9M22 core NPAT was flat yoy and came in at Rp5,153b. ICBP is trading attractively near its - 1SD PE. Maintain BUY with a target price of Rp12,000 (18.2% upside).

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STRATEGY – THAILAND
Alpha Picks: Dec 22 Portfolio

Despite the Bank of Thailand raising the policy interest rate to 1.25%, the hike was in line with market forecasts and may not trigger a negative reaction. In addition, the government stimulus packages will be a key driver in 4Q22 and 1Q23 and could boost domestic consumption and the tourism sector. For Dec 22, our picks are ADVANC, AMATA, AP, BBL, CPALL, CPF, MAJOR, ONEE, ORI and SPRC.

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