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MAYBANK KIM ENG |
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Thailand Energy Sector Oil prices supported by geopolitical risks while natural gas prices decline on warm weather, ample storage
Rising US inventories US crude oil inventories increased by 2.9m bbls WoW for the week ending 15 Dec. At the same time, gasoline inventories grew 2.7m bbls WoW but remain 2% below the 5-year average. Distillate inventories also rose 1.5m bbls WoW and are about 10% below the 5-year average. US oil output: increased by 200kbd to 13.3mbd. On a YoY basis, output has increased by 1.2mbd. Net speculative position: CFTC reported the net speculative position has fallen to 151.6k contracts as of 16 Dec, having fallen by more than 50% since the recent high in late Sep. This is also the lowest level since 8 Jul and is close to the multi-year low level reached earlier that month.
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Mynews Holdings (MNHB MK) 4QFY23 results: Back to black
U/G to BUY with a higher TP of MYR0.62 MNHB’s earnings turned around in 4QFY23 and narrowing food processing centre losses are encouraging. Expectations for potential cost savings once CU breaks even should also continue to drive earnings recovery in FY24E. Hence, our FY24E-25E earnings estimates are lifted by 32%-83% and we introduce FY26E estimates. With its improving outlook, we U/G MNHB to BUY (from HOLD) with a higher TP of MYR0.62 (+8sen) on an unchanged 1.7x FY24E PBV (-1SD to mean).
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LIM & TAN |
LIM & TAN |
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City Developments Limited ($6.41, up 5 cents) refers to the operational update for the quarter ended 30 September 2023 announced by the Company on 23 November 2023. Under the segment titled “Outlook and Prospects”, the Company informed that the global economic outlook remains highly vulnerable to macroeconomic sensitivities, including persistent inflation, a high interest rate environment and geopolitical tensions. CDL expects to release its unaudited FY 2023 financial results in February 2024 and warns that shareholders and potential investors are advised to exercise caution when dealing or trading in the securities of the Company. CDL’s market cap stands at S$5.8 bln and currently trades at 18.4x forward PE and 0.7x PB, with a dividend yield of 3.1%. Consensus target price stands at S$8.07, representing 25.9% upside from current share price. While headline news looks negative, we think fundamentals are stable and core earnings are expected to grow 17% in FY24. As this profit warning is non-cash in nature, we continue to be positive on CDL’s recovery in the hospitality sector and recommend investors take opportunity on any selldown to Accumulate CDL.
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Nanofilm Technologies International Limited / Nanofilm ($0.855, down 0.065) a leading provider of nanotechnology solutions, has announced today that it has commenced its venture into the European market as part of its global expansion plans. With a legacy of pioneering technology spanning several decades, the company’s every invention and action is driven by its dedication to assisting its customers in achieving their objectives and promoting a sustainable world. Nanofilm has a global footprint of more than 3,000 employees in Singapore, China, Japan, Vietnam and now Europe. At 85.5 cents, Nanofilm is capitalized at $567million and trades at a PE ratio of 20x and price to book of 1.5x. Consensus target price stands at S$0.84, representing 1.8% downside to current share price. We are Neutral on Nanofilm given its still high valuations. |
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