buysellhold july.23



Carlsberg Brewery Malaysia (CAB MK)

Weathering through


Maintain BUY with an unchanged TP of MYR21.00 CAB’s overall volume growth may be hindered by ongoing challenges in consumer sentiment, but given its recent product price increase and more favourable raw material ASPs, the group has more breathing room to defend margins. Hence, we keep our earnings estimates. Maintain BUY with an unchanged DCF-TP of MYR21.00 (WACC: 8%, LT growth: 3%) with decent FY24E yield of 4.7%.



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New initiatives’ losses set to narrow further


■ Revenue reached Rmb73.3bn in 1Q24, a yoy increase of 25%, among which core local business grew by 27.4% yoy to Rmb54.6bn, slightly above our expectations.

■ Adjusted net profit was Rmb7.5bn, up 36.4% yoy, slightly better than we expected, mainly due to lower losses incurred for new initiatives.

■ Due to the high base of 2Q23, we now expect revenue and adjusted net profit growth of 18.2% yoy and 26.5% yoy for 2Q24F.

■ Management expects new initiatives’ losses to narrow further qoq in 2Q24F.

■ Reiterate Add with a higher DCF-based TP of HK$159.



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Astra International

Slow EV adoption easing volume concerns


■ Slow EV adoption and solid hybrid sales in Indonesia should help Astra International (ASII) maintain its dominance in the auto segment, in our view.

■ We think weak auto sales volume due to lack of new models and weak purchasing power could hurt ASII’s revenue, net profit growth in FY24-25F.

■ We cut FY24F/25F EPS by 9%/5% to reflect lower auto volume and margin assumptions. Reiterate Add with a lower SOP-based TP of Rp5,500.


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Yangzijiang Shipbuilding (Holdings) (YZJSGD SP)

The Not-so-little S-chip That Could


YZJ’s strong share price performance this year reflects its stellar operational and new order win performance by riding the shipbuilding upcycle, in our view. We have upgraded our earnings by 10-30% as well as our 2024 order win expectations from US$5b to US$7b despite the company maintaining its guidance of US$4.5b. Maintain BUY with a higher target price of S$2.86 (previously S$2.19).



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Electronics – Thailand

A Solid Outlook After 2Q24


We expect revenue and gross margin of Thai electronics stocks under our coverage to improve qoq in 2Q24 due to a recovery in demand for many products as well as a better outlook for the semiconductor industry. We expect the strong recovery to be evident in 2H24 thanks to better revenue outlook and gross margin on the back of a baht depreciation and better cost control. Maintain MARKET WEIGHT.


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Oiltek International Ltd

Riding major capex cycles


▪ The order book for Oiltek has been growing at a 50% CAGR over the past four years. FY24e is poised to be a fifth straight year of record orders. Oiltek secured new orders last week, which boosted its order book by around 30%, currently RM400mn or two times FY23 revenue



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