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CGS CIMB |
UOB KAYHIAN |
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Wilmar International Rate cut tailwind to flow through in FY25F
■ With the US interest rate cut, we think WIL will see lower finance cost from FY25F as short-term debt made up 72.9% of total debt in 1H24. ■ Improving soybean crush margins in China QTD, along with the sugarcane harvesting season in Australia, should support better profitability for 2H24F. ■ Reiterate Add with an unchanged TP of S$3.63.
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Automobile – China Weekly: Show Me The Cash
The findings from our analysis on 1H24 financials generally reconfirm our segmental preference and stock picks for the auto sector. We prefer names with better earnings qualities in regard to margins and cash flows (eg Geely, GWM, CATL, Desay SV and FYG) to the others (eg BYD, Li Auto, XPeng, GAC, Nexteer, EVE Energy, Ganfeng and Zhongsheng). Maintain MARKET WEIGHT. Top BUYs: CATL, Desay SV and Geely. Top SELL: GAC.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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LHN (LHN SP) 3QFY24: Strategic Moves Pave The Way For Promising Future Growth
In LHN’s 3QFY24 update, we see continued expansion across all its business segments. Coliwoo remains the key growth driver with 2,401 keys (+10% qoq), while the construction of its food factory is progressing well. LHN has been active in capital recycling, with the sale of its 40%-owned BTSC carpark and acquisition of a 50% stake in Wilmer Place. In both the facility management and energy businesses, more contracts were secured. Maintain BUY with an unchanged target price of S$0.40.
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Singapore Telecommunications (ST SP) Indian Supreme Court rejects telcos AGR recomputation plea
What’s new? India’s Supreme Court dismissed curative petitions from Vodafone Idea and Bharti Airtel regarding the Adjusted Gross Revenue (AGR) dispute. For Bharti (Singtel’s 29%-owned associate), we estimate the original demand under the AGR case was INR630bn (SGD9.75bn) (including liabilities on spectrum acquired from Tata, Telenor etc) of which Bharti has already paid INR180bn. Earlier, telcos were directed to pay the dues in instalments.
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| CGS CIMB | UOB KAYHIAN |
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CapitaLand Malaysia Trust Remains in a sweet spot
■ We upgrade CLMT to Add with a higher DDM-derived TP of RM0.80 following our forecast revisions. This note marks the transfer of coverage to Lucas Tan. ■ We project a 3-year EPU CAGR of 8.2% over FY23-26F, underpinned by incremental earnings from new assets and rental reversions. ■ The implied FY25F dividend yield of 6.9% as well as the capital upside of 16.2% present appealing investment opportunities for investors, we believe.
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Automobile – Malaysia MAA Aug 24 TIV: Falls Slightly Due To The Lower Performance In Both Passenger And Commercial Vehicles
MAA’s Aug 24 TIV saw a slight decrease by 0.8% mom and 2.3% yoy, resulting from passenger and commercial vehicles’ lower performance respectively. We increased our TIV forecast to 760,000 units as we anticipate demand for budget-friendly products especially Perodua’s models to remain robust. However, we foresee limited catalysts except for ongoing new models and brands. BAUTO remains our top pick given its decent dividend yield of 8%. Maintain MARKET WEIGHT.
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