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CGS CIMB |
CGS CIMB |
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Aztech Global Ltd Reiterate Reduce – outlook still challenging
■ We provide an update on Aztech Global Ltd (Aztech). ■ In our view, its outlook for FY25F remains challenging as the order flow from its key customer remains weak. ■ We think 2Q25F will be better qoq, and peak production will be in 3Q25F. 2H is seasonally stronger than 1H for Aztech. ■ Our recommendation remains Reduce given the uncertain in its order outlook and its customer concentration risk.
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Thai Beverage Vietnam excise tax hike deferred to 2027F
■ Vietnam will hike its special consumption tax on beer from the current 65% to 70% from 2027F vs. the initially proposed 80% by 2026F. ■ All else equal, we estimate the tax hikes could lead to 3% annual increases in Vietnam beer prices through to 2031F. ■ Reiterate Add. We believe economic headwinds to beer consumption are largely priced in at THBEV’s current valuation.
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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Airlines (SIA SP) May 25 Operating Data In Line; Expect Decent 1QFY26 Earnings Performance
SIA’s May 25 operating data were in line with expectations, with pax and cargo loads rising 3.1% and 4.2% yoy respectively. We forecast that SIA would deliver a steady 1QFY26 core net profit of S$400m-500m, broadly comparable yoy. The closure of Jetstar Asia presents an opportunity for SIA/Scoot to capture additional market share at Changi Airport. However, rising geopolitical tensions in the Middle East pose upside risks to jet fuel prices. Maintain HOLD on SIA with a target price of S$6.63.
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Bumi Resources Minerals (BRMS IJ) Soaring To New Heights; Initiate Coverage With BUY
We initiate coverage with BUY and an SOTP-based target price of Rp610, implying 54.5x 2025 EV/EBITDA. Despite its premium to peers (6.7x), BRMS offers a strong three-year EBITDA CAGR of 43.2% for 2025-28 and potential upside from monetising its Gorontalo reserve. Note that BRMS’ 90-day trading value is the 9th-highest among Indonesia-listed stocks and it is a potential candidate for MSCI Indonesia Index inclusion, with its floatadjusted market cap nearing the minimum threshold and given its high trading liquidity.
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| LIM & TAN | LIM & TAN |
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The Business Times reported that National carrier Singapore Airlines ($6.87, down 7 cents) and its low-cost arm Scoot reported a 3.1% year-on-year increase in passenger traffic in May, easing from the previous month’s growth, its operating results showed on Monday (Jun 16). SIA’s market cap stands at $20.5bln and currently trade at 14.7x forward PE and 1.3x PB, with a dividened yield of 5.8%. Consensus target price stands at $$6.73, representing 2% downside from current share price. Although the monthly data bodes well for SIA, coupled with Jetstar’s departure which implies lesser competition in the LCC space, we think that the post-covid boom in air travel is likely over, and SIA would find it difficult to meaningfully grow on a yoy basis. Consensus also suggests that upside is limited for SIA and as such, we recommend a HOLD on SIA.
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The Business Times: With no new projects launched in May, developers in Singapore sold 312 private homes in the month, less than half the 663 units transacted in April. While new home sales were relatively weak in May due to a lack of new launches and the election period, total sales tally since the start of the year remains promising, having more than doubled yoy. Moderating interest rates and cheaper mortgages may continue to keep demand resilient. We view this to be positive for propertyrelated sector stocks as well as property agencies. |
