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UOB KAYHIAN |
UOB KAYHIAN |
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Market Strategy S$5b Shot In The Arm: MAS’ Liquidity Lift-off For Singapore’s Mid Caps
With the MAS’ upcoming S$5b EQDP expected to boost mid-cap liquidity, we screened for stocks meeting a high liquidity threshold (ADTV >S$2m) and having solid fundamentals. Key stocks that screened well include CENT, CD, FR, IFAST, NETLINK, RFMD, RSTON, SSG, SIE, SPOST and UMS. Lowering the ADTV bar adds nine names with HLA and FEH being the most favoured in this group.
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Top Glove (TOPG MK) 3QFY25: Weathering Another Weak Quarter; Better Outlook Guidance
TOPG turned into core losses in 3QFY25 due to a temporary weakness in US demand and intensifying competition in Europe. Nevertheless, management guided a 15-20% qoq volume sales growth in 4QFY25, reinforcing better demand and margin expansion on US distributors’ normalising inventory levels. Despite optimism over growth in the coming quarters, we lower our FY25-26 earnings forecasts and acknowledge the sector’s structural de-rating. Downgrade to HOLD with a lower target price of RM0.79.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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CSE Global (CSE SP) Multi-Year Breakout
Maintain BUY with a higher TP of SGD0.70 With Trump pushing companies to set up US factories, and more data centres to be built, CSE will likely be a key beneficiary of these megatrends. Management is focused on expanding US capacity for these segments with a much larger facility being constructed. We believe CSE is gaining good traction with one of the largest data centre players in the US and is in the midst of qualifying for another 1-2 major customers. CSE is also well-placed to be one of the key beneficiaries of the Monetary Authority of Singapore’s (MAS) SGD5bn program. We lift our TP to SGD0.70, pegged to a higher 14.0x P/E from 11.5x FY25E due to its positive outlook.
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Sunway (SWB MK) Strengthening industrial presence in Selangor
Deepening industrial exposure in Rawang We are positive on SWB’s latest land acquisition in Rawang for its attractive pricing. The land, which is adjacent to its existing land (245 acres) there, will be developed into an industrial park to be launched by FY28E. We raise our earnings forecasts by +4-10% following our earnings upgrade in SCGB. Our SOP-TP is raised to MYR5.31 (+17sen) due to higher TP for SCGB (+148sen, from MYR5.24). U/G SWB to BUY.
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