buysellhold july.23




An attractive yield and growth play


■ We like Singtel for its attractive yield (c.7%) and growth (FY24-27F core EPS CAGR: c.9%) but trades at just 8.5x EV/EBITDA (-1 s.d. from 10-year mean).

■ Optus EBIT repair should commence in the coming quarters, we think; opex optimisation, capex rightsizing, and improved mobile pricing are key drivers.

■ Reiterate Add with a higher TP of S$2.90 on lower longer-term capex assumptions. Material asset monetisation could be a re-rating catalyst



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Mah Sing Group

Positives already reflected in share price


■ 1Q24 core net profit of RM56m (13% yoy) is in line with our and Bloomberg consensus estimates at 23% and 26%, respectively.

■ The group achieved new property sales of RM992m for the five-month period in FY24, on track to meet its FY24F sales target of RM2.5bn, in our view.

■ YTD, its share price has more than doubled. We believe positives are already reflected in the share price. Downgrade to Reduce. 



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Valuetronics Holdings Ltd

Get paid as customer base is refreshed


 FY24 revenue was below our estimates at 89% of FY24e forecasts. PATMI was better than expected at 105% of our FY24e forecast. Lower depreciation, effective tax, and higher interest income were the reasons for the outperformance.

 Revenue was weaker than expected due to drag in legacy products such as consumer product printed circuit board assembly (PCBA) and auto entertainment modules. Customers have permanently switched their supply chains out of China. Contributions from new customers, namely networking products and theme park entertainment devices, are commencing


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Yoma Strategic Holdings Ltd

Deleveraging and growing


 Yoma reported FY24 revenue growth of 80% YoY to US$221mn and EBITDA jumped 160% to US$46mn. Growth was driven by property development sales and Wave Money.  Excluding fair value gains, currency impact, and impairments, we estimate adjusted net loss in FY24 of around US$15mn (FY23: US$26mn). Yoma has further deleveraged with net debt dropping to US$36mn (FY23: US$73mn). This is a huge decline from the net debt of US$284mn two years ago. 



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Delfi Ltd

Margins to start facing pressure in 2H24F


■ 1Q24 EBITDA of US$25.5m was in line at 28.1% of our FY24F estimate, benefitting from higher operating leverage in a seasonally stronger quarter.

■ Delfi reduced spending on trade promotions in 1Q24, which supported a 0.5% pt improvement in GPM yoy to 30.2%.

■ Maintain Add while keeping estimates unchanged. TP lowered to S$1.10 due to potential risk of margin compression from the escalating cocoa prices. 



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Alpha Picks: Strong Performance. Add CENT, CVL, SIAEC And Remove CD, MPACT, YZJ, RSTON


For May 24, our Alpha Picks portfolio rose 3.8% mom on an equal-weighted basis, beating the STI by 2.5ppt. The outperformance of our portfolio was driven by YZJ and RSTON, while SCI and CD underperformed in May 24. Our Alpha Picks portfolio has outperformed the STI in four out of the past five months. For Jun 24, we add CENT, CVL and SIAEC while removing CD, MPACT, YZJ and RSTON.



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