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PHILLIP SECURITIES |
UOB KAYHIAN |
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CNMC Goldmine Holdings All the stars align
• We raise our average selling price (ASP) assumption from US$2,900 to US$3,100 (18 Jun 2025: US$3,381), driven by heightened geopolitical tensions in the Middle East, aggressive central bank gold purchases, and a potentially dovish U.S. Federal Reserve stance. Trial production at the new CIL facility has been completed, with official operations commencing at 800 tonnes per day (FY24: 5,000 tonnes). We maintain our FY25e gold production forecast of a 20% YoY increase.
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REITs – Singapore Preferential Tariff Game Changer For Manufacturing Sector In Singapore
A preferential tariff for the export of pharmaceutical and semiconductor products to the US, if successfully concluded, would be a game changer for the manufacturing sector in Singapore. Maintain OVERWEIGHT. Our top pick CLAR (Target: S$3.58) has the largest exposure to business park and hi-tech buildings in Singapore at 53% of portfolio valuation. Technology, logistics and life sciences industries accounted for 65.1% of CLAR’s monthly rental income.
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UOB KAYHIAN |
CGS CIMB |
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Haidilao International Holding (6862 HK) Revenue Remains Under Pressure But Stable Operating Margin Is Expected; Increasing Consumer Preference For Food Delivery Over Dining in
In 5M25, the table turnover rate of Haidilao restaurants recorded a yoy decline, leading to a yoy drop in revenue, and the visibility on the full-year revenue trajectory remains low. However, the company is committed to maintaining a stable operating margin. Consumers have shown an increasing preference for delivery over dine-in since 2H24, which peaked during Apr-May 25, when competition among delivery platforms became the most intense. Maintain BUY, but cut target price by 11% to HK$19.00.
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Farm Fresh Berhad Ice cream lift tempered by hot valuations
■ We maintain our Hold call with an increased GGM-derived TP of RM1.98 as we tweak our estimates post-FY3/25 results announced in May 2025. ■ New ice cream capacity, robust demand for its growing up milk and its newly launched Philippine operations provide growth drivers for FY26F. ■ Valuation at 21.1x CY26F P/E, even on our above-Bloomberg consensus estimates, is fair; we believe this will cap valuation upside.
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| LIM & TAN | LIM & TAN |
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The Business Times reported that SingPost ($0.57, up 0.5 cents) has put up 10 Housing & Development Board (HDB) shophouses for sale and leaseback under its plan to divest non-core assets. These properties, distributed across the HDB heartlands, are expected to fetch S$50 million in total, The Business Times understands. The Teban Gardens Road shophouse has the lowest asking price of S$2.4 million, and the one in Bedok North, the highest at S$7.1 million. Gross yields for these HDB shophouses, with a total strata area of 21,118.77 square feet, range from 4.32 to 4.98 per cent per annum. SingPost is the anchor tenant for 90.8 per cent of the space in these shophouses, with the remaining being leased out to external parties. SingPost’s market cap stands at $1.3bln and currently trades at 52x forward PE and 1x PB, with a dividend yield of 1.6%. Consensus target price stands at $0.70, representing 22.8% upside from current share price. PE remains high as a result of the sale of their Australian business, which will no longer add to their earnings moving forward. With core business likely to remain weakish, and any additional meaningful monetisation will take time (i.e. SingPost centre), we maintain our NEUTRAL/HOLD recommendation on Singpost.
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The Business Times reported that banks are ramping up their use of artificial intelligence (AI), and DBS ($43.93, down 0.30) – which has earned S$750 million through its use of the technology – estimates that its economic value could surpass S$1 billion this year. A more hawkish interest rate outlook due to higher-than-expected inflationary expectations could be positive for banks. DBS’s quarterly dividend payment of 60 cents and quarterly capital return of 15 cents, totalling $3/share return for FY2025 coupled with their on-going $3bln share buy-back program providing good support/ cushion for its share price amidst greater global equity market volatilities. We maintain our “Accumulate” rating on DBS. (At $43.93, normalized yield is 5.5%, 6.8% inclusive of capital returns, PE is 11.4x, consensus 1 year target is $46.77). |
