| UOB KAYHIAN |
UOB KAYHIAN |
|
BRC Asia (BRC SP) 1QFY24: Strong Results As Construction Demand Recovers
BRC reported higher 1QFY24 revenue (+17.0% yoy) of S$399.2m and net profit of S$17.1m (+46.5% yoy), slightly above our expectations. The outperformance was largely driven by the ongoing recovery in domestic construction demand coupled with the absence of Singapore’s Heightened Safety period. Backed by favourable tailwinds, we like BRC for its steady earnings growth coupled with its 9% dividend yield. Maintain BUY with a higher PE-based target price of S$2.42 (S$2.07 previously).
|
Banking – Malaysia Digital Banks Ramping Up Deposit Competition?
As the five digital banks prepare to commence operations in the coming months, we anticipate a focus on deposit acquisition, potentially impacting sector NIM slightly. Sector valuations have risen to a historical mean P/B of 1.10x, which appears fair against forecasted ROE of 10% and earnings growth of only 6% vs our KLCI earnings growth assumption of 11%. We maintain our MARKET WEIGHT recommendation on the sector. CIMB remains our preferred choice.
|
|
PHILLIP SECURITIES |
OCBC |
|
Singapore REITs Monthly: March24 Waiting for interest rate cuts
▪ The S-REITs Index performance was lukewarm in March after the FOMC held rates steady at 5.25-5.5%. It gained 0.6%, following the 5.1% decline in February. The top performer for the month was Manulife US REIT (MUST SP, non-rated) – it gained 40% but is still down 3.8% YTD. The worst performer was Daiwa House Logistics Trust (DHLT SP, non-rated), a drop of 7.8% after the Bank of Japan raised interest rates to 0-0.1%, ending its eight-year period of negative interest rates. The overseas commercial sub-sector was the top performer in March, gaining 10.8%, lifted by the Singapore-listed US office REITs. It is, however, still down 22.7% YTD. The worst performing sub-sector was overseas diversified, down 2.2% in March.
|
Agricultural Bank of China (1288 HK / 601288 CH) - Outperforming its peers on earnings growth and coverage
When investing in Chinese banks, we recommend focusing on quality core holdings. We prefer the Big-4 state-owned enterprise (SOE) banks. Among them, Agricultural Bank of China (ABC) maintains one of the lowest exposures to risk assets and has the strongest liquidity and deposit franchise in the sector. BUY. |
|
|
