buysellhold july.23



Sembcorp Industries / SCI ($5.75, down 1 cent) posted a strong performance for the full year of 2023 (FY2023). Turnover was S$7.0 billion compared to S$7.8 billion in FY2022. Group net profit before exceptional items (EI) grew 38% year-on-year to S$1.0 billion from S$739 million in FY2022, with higher contributions from the Gas and Related Services and Renewables segments. Group net profit after EI and loss from discontinued operation was S$942 million, 11% higher than S$848 million in FY2022.

SCI’s market cap stands at S$10.3bln and currently trade at 10-11 forward PE and 2.3x PB, with a dividend yield of 2.26%. Based on Bloomberg consensus target price of S$6.82, this represents 19% upside from current share price. We thus continue to maintain an “Accumulate” rating on SCI.


KSH Holdings Limited / KSH ($0.245, up 0.005), wishes to update that the wholly-owned subsidiary of the Company, Kim Seng Heng Engineering Construction (Pte) Ltd has accepted a Letter of Award for a new construction project (the “LOA”). The Group’s construction order book in Singapore is now more than S$156.0 million with the acceptance of the LOA. The Group is currently working on several tenders to further increase the order book to a higher amount. The order book is expected to contribute to the Group’s financial results up to the financial year ending 31 March 2026.

We believe KSH is a beneficiary of the construction upcycle and will continue to re-build its order books back to pre-covid 19 levels. At 24.5 cents, KSH is capitalized at $138 million and trades at 5% dividend yield and 0.4x price to book.



Serial System Ltd ($0.05, unchanged) wishes to inform shareholders and potential investors of the Company that the Group is expected to report a net loss for the financial year ended 31 December 2023 (“FY2023”). Based on the preliminary review of the Group’s unaudited financial results for FY2023, the Group’s net loss is primarily due to loss allowance for trade receivables, net foreign exchange loss, allowances for inventory obsolescence and higher interest expenses impacted by the high interest rates.

The weak financial performance is also attributable to the slowdown in consumer and industrial demand in Asia, especially China, amid macro challenges around inflationary pressures, high interest rates, currency volatilities and ongoing geopolitical tensions. This profit guidance is not based on any financial figures or information which has been audited or reviewed by the Company’s auditors. Further details of the Group’s performance will be disclosed when the Company announces its unaudited financial results for FY2023 on or before 29 February 2024. At 5 cents, Serial System is capitalized at $45 million and trades at 0.3x price to book.



G.H.Y Culture & Media Holding Co., Limited ($0.37, down 0.01) wishes to update shareholders that based on the preliminary review of the draft unaudited consolidated financial results for the full financial year ended 31 December 2023 (“FY2023”), the Group is expecting to report a net loss for FY2023.

The net loss is primarily attributable to, inter alia, the following factors: (a) the foreign exchange loss arising from the appreciation of the Singapore Dollar against the Chinese Renminbi in FY2023, mostly from the intercompany balances denominated in Singapore Dollar of the entities of the Group in the People’s Republic of China (“PRC”) of which the financial statements are prepared in Chinese Renminbi, as the Group has significant operations in the PRC; and (b) the recognition of credit loss allowance. Loss allowance has been measured by reference to past default experience of the debtors and an analysis of the debtors’ current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and current and forward looking macroeconomic factors affecting the ability of the customers to settle the receivables. At 37 cents, GHY is capitalized at $395 million and 3x price to book.

Elite Commercial REIT

De-risked with stable cash flow till FY28


• Gross revenue for FY23 was within expectation and increased by 1.5% YoY to £37.6mn due to rental escalation but offset by eight assets vacated in Apr23. NPI surpassed estimates by 9%, summing to £41.4mn due to the £8mn dilapidation settlement with respect to vacated assets.



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