| UOB KAYHIAN |
UOB KAYHIAN |
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COSCO SHIPPING Ports (1199 HK) Potential Material Transactions By Associated Company Qingdao Port
CSP’s 19.79%-owned associate QPI is planning for a material asset reorganisation with its sister companies Rizhao Port Group and Yantai Port Group by acquiring several of the latter two’s key operating entities. As we await further details about QPI’s proposed transactions, we reckon that possible negative impacts to CSP’s earnings, if any, would not be more than 10% in a bear-case scenario. Maintain BUY with a lower target price of HK$6.65 as we adjust for adverse forex translation from a weakened renminbi.
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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) Going From Strength To Strength
YZJ’s strong share price performance in the past week has been on the back of substantial new orders that now extend its revenue visibility out to 2027. With ytd orders of US$5.6b, this has shattered its 2023 order win target of US$3b – as a result we upgrade our 2023 order win target to US$7b. We note that Chinese steel costs have come down on a yoy basis, thus potentially setting YZJ up for a strong 1H23. Maintain BUY. Target price upgraded to S$1.65 (previously S$1.58).
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CGS CIMB |
CGS CIMB |
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ISDN Holdings Ltd Commercial operation date obtained
■ ISDN on 16 Jun 2023 announced that its Sisira and Anggoci mini-hydropower plants have achieved their commercial operation date (COD). ■ We estimate 1H23F net profit could fall 54.8% yoy but rise 40.8% hoh to S$5.0m. ISDN reported 1H results on 12 Aug last year. ■ Downgrade to Reduce as mini-hydropower re-rating catalyst is priced in and FY24F net profit outlook could weaken as economic growth slows.
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Banks Mortgage prepayments: finally falling in Jun
■ The RMBS prepayment index has finally started to fall in Jun 2023, after consecutively rising every month since Jan 2023 (Fig 1). ■ Despite the month-on-month fall in Jun, the index still remains at its secondhighest monthly level since the start of the index in Jan 2020. ■ The fall in mortgage prepayments appears to be broad-based across banks (Fig 4), based on an analysis of numerous RMBS issuances by banks.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Berjaya Food (BFD MK) Bottoming out
U/G to BUY with unchanged TP of MYR0.72 Sales momentum is expected to be lacklustre in 4QFY23 due to seasonally weaker sales during Ramadan. However, lower coffee ASPs in 4QFY23 may partially offset slower sales momentum in sequential quarters. Product demand for BStarbucks remains strong, but meaningful earnings improvement will have to be attained through stringent cost management. We maintain our earnings estimates but lower FY24E-FY25E DPS estimates to 2sen p.a. (from 3.5sen p.a.). With 29% upside to our unchanged TP of MYR0.72 (based on 13x CY24 PER, mean), we U/G BFD to BUY.
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CP All (CPALL TB) Robust earnings growth in 2Q23E
Reiterate BUY call, TP THB79 We reiterate our BUY call on CPALL, with a DCF-based TP (7.3% WACC and 3% growth) of THB79. CPALL remains our Top Pick in the retail sector. We expect 2Q23E earnings (due on 10-11 Aug) to be strong, thanks to the April Songkran festival, national election and hot weather. We should see even stronger earnings in 2H23E due to positive momentum in domestic consumption coupled with declining electricity costs and financial expenses. Based on Maybank’s ESG rating system, CPALL scored 66, well above the average of 50 for our universe.
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