buysellhold july.23



Singapore Banking

Monthly Interest rates decline halted


▪ March’s 3M-SORA was flat MoM at 3.64% but was 2bps lower than the 1Q24 average. Nonetheless, the 3M-SORA rose by 29bps YoY. 3M-HIBOR was up 2bps MoM to 4.70%, slightly reversing the decline of 14bps in February.

▪ Singapore domestic loans dipped 0.3% YoY in February, below our estimates. This was the smallest loan decline recorded in 15 months. The CASA balance rose slightly to 18.2% (Jan24: 18.1%).


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CapitaLand Ascott Trust

Gateway city strategy shines


■ Taylor Swift/Coldplay will perform in 10/6 out of CLAS’s 46 cities, highlighting CLAS’s investment strategy, which focuses on key gateway cities.

■ Referencing STR’s Eras Tour report, we estimate RevPAR could have grown 18-21% yoy in Singapore, Tokyo, Melbourne and Sydney in concert months.

■ Reiterate Add. We raise CLAS’s FY24F RevPAR growth for the major concert markets from 5-6% to 7-8%, translating into 0.3% uplift in FY24F gross profit.



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PTT Exploration & Production

Strong oil price to support 1H24F outlook


■ PTTEP is likely to report stronger domestic gas production volume in 2Q24F upon the full production ramp-up of its Erawan gas field, in our view.

■ Double geopolitical conflicts in Middle East and Russia are likely to provide support to oil prices and PTTEP’s EPS in the near term, in our view.


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Winking Studios (WKS SP)

Levelling Up In The Dynamic World Of Game Art


Winking Studios has established itself as a leading game art outsourcing studio globally with over 25 years of experience. As demand for game art outsourcing is expected to rise with the surge in game popularity, we expect the group’s 2024/25 core earnings to grow 12%/10% respectively. In view of its strong backing by Acer Gaming and robust cash flow, we think the group will continue to achieve inorganic growth via acquisitions. Initiate coverage with BUY. Target price: S$0.35.



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We highlight the following key points from OCBC’s ($13.76, up 0.13) FY23 annual report:


OCBC’s net profit of $7.02 billion in 2023 was up 27% from the previous year, reaching another record high. This lifted our return on equity from 11.1% to 13.7%. Operating performance was resilient across our key businesses, demonstrating the strength of our diversified franchise and strong progress we made in executing our corporate strategy. 

While we continue to like OCBC, we note that the stock has risen year to date by 6%, outperforming the STI’s flat performance and upside to consensus target price of $14.40 is only 5%. We note that the bank has recently restarted their share buy back program and valuations are not demanding at 9x PE, 1.1x book and 6% yield. Maintain an “Accumulate”, on some weakness.





We highlight the key points Sheng Siong Group’s ($1.53, down 1 cent) FY23 annual report.

There were considerable global headwinds in 2023 with geopolitical instability and inflation topping the list. While inflation around the world started to ease towards the end of 2023, it still remains above pre-Covid-19 levels with Central Banks wary of a monetary policy transformation right away. Given this, consumers continue to be subjected to increasing costs in the form of high energy and food prices, and Singapore is no different. 

Sheng Siong’s market cap stands at S$2.3bln and currently trades at 16-17X forward PE and 4.7X PB, with a dividend yield of 4.1%. Consensus target price stands at S$1.74, representing 15% upside from current share price. We continue to like the defensive qualities of Sheng Siong Group in the current recessionary conditions and thus maintain an “Accumulate” on weakness rating on Sheng Siong Group.

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