buysellhold july.23





FY24: Results Beat Expectations; Earnings Recovery To Accelerate In FY25


SATS’ FY24 net profit of S$56.4m beat our forecast of S$41.4m, due to slightly betterthan-expected margins and higher-than-expected JV/associate contribution in 4QFY24. SATS declared a final dividend of 1.5 S cents for FY24. We raise our FY25 net profit forecast by 36% to S$215m while maintaining FY26 forecast unchanged at S$285m. In its strategy update, management announced an aggressive target revenue of S$8b by 2028 with a 15% ROE. Maintain BUY and target price of S$3.22.


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Genting Malaysia (GENM MK)

1Q24: Refining Recovery Pathway


GENM delivered a stellar suit of earnings which surpassed pre-pandemic numbers. RWG’s outstanding performances were backed by higher visitations and a resilient margin uptick. Meanwhile, overseas operations charted strong growth, particularly RWNYC which reported record-high EBITDA. We remain optimistic on 2024’s robust tourism outlook, and opine that GENM offers meaningful capital upside for its bargain valuations and lush yields. Reiterate BUY and target price of RM3.50.



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Mapletree Pan Asia Commercial Trust ($1.22, unchanged) announced that it has entered into a put and call option agreement with an unrelated third party, to divest Mapletree Anson for a divestment consideration of S$775.0 million. The Divestment Consideration represents a gain of S$10.0 million over the Property’s latest independent valuation of S$765.0 million as at 31 March 2024, and is S$95.0 million higher than the Property’s original purchase price of S$680.0 million. This Divestment Consideration was negotiated on a willing-buyer and willing-seller basis after taking into account the aforementioned independent valuation.

MPACT’s market cap stands at S$6.4bln and currently trade at 14x forward PE and 0.7X PB, with a dividend yield of 7.5%. Consensus target price stands at S$1.54, representing 26% upside from current share price. While the upside to 1 year consensus target is attractive, we note that MPACT will officially be kicked out of the MSCI Singapore large cap index by tomorrow and we expect the exchange traded funds that track this index to readjust their portfolios by today and expect there to be high volatility and possible for more share price weakness despite its already 23% YTD decline, way underperforming the STI’s 2.6% gain on a YTD basis. We would “Avoid” it for now.



KSH Holdings Limited / KSH ($0.24, up 0.01) announced revenue of S$214.1 million for the year ended 31 March 2024 (“FY2024”), a decrease of 28.2% from S$298.0 million over the same corresponding period last year (“FY2023”). The decrease was primarily attributed to decrease in revenue from construction business. The Group reported a net loss attributable to Owners of the Company of S$31.5 million, as compared to a net profit attributable to Owners of the Company of S$22.1 million in the same period last year. Share of results of associates and joint ventures incurred a loss of S$5.3 million in FY2024 as compared to a profit of S$20.3 million in FY2023. This was mainly due to the absence of contribution from property development projects. 

The Group maintains a cautious stance regarding the challenges and uncertainties ahead, in view of rising interest rates, foreign exchange exposure, and the impact of high construction costs on the performance of its construction projects. At 24 cents, KSH is capitalized at $134mln and its price to book value is 0.45x while div yield is 4.2% (0.5 cents interim and 0.5 cents final). With its strong cash position and potential turnaround in the year ahead, we expect the company to continue with its share buy back program given its strong cash position of $135mln and reasonable gearing of 42%. Maintain “Accumulate on Weakness”.


Press Metal Aluminium (PMAH MK)

Strong 1Q24 due to higher hedge prices


Results beat; tactical U/G to BUY @ MYR6.10 TP

1Q24 results beat expectations with reference to our results preview on 4 Apr (link). Post-results and briefing, we lift FY24-26E earnings forecasts by +37%/+26%/+14% after raising our LME aluminium spot price assumptions to USD2,500/2,500/2,440/t and updating PMETAL’s hedging ratios of 30% @ USD2,600 for FY24E, 30% @ USD2,650 for FY25E and 25% @ USD2,700 for FY26E. We tactically upgrade PMETAL to BUY with a higher TP of MYR6.10 (from MYR4.84), pegged to an unchanged PER of 25x on FY25E EPS. 



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Genting Bhd (GENT MK)

Luck driven auspicious start to the year


Maintain BUY with tad higher MYR5.84 SOP-TP (+2%) 1Q24 core net profit was the highest since 4Q18, albeit driven by a high RWS VIP win rate. We lower our EPS estimates by 9-11% but tweak our SOPTP to MYR5.84 from MYR5.73. Notwithstanding the ‘lucky’ 1Q24, we still like GENT as a deep value play. 21%-owned TauRx’s experimental drug ought to receive a reply from UK or US pharmaceutical regulators by year end. Under a ‘blue sky’ scenario where TauRx is worth USD15b and there is no holding company discount on it, GENT could be worth MYR9.35.



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