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UOB KAYHIAN |
UOB KAYHIAN |
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Offshore Marine – Singapore Tariff Tantrum: Winners, Losers & Deepwater Plays
In Apr 25, Trump’s steep tariffs triggered a drop in oil prices amid worries about oil demand and excess OPEC supply. Shipping has also been impacted; however, this may be somewhat limited as US-China trade forms just 5% of global container volumes, offset by rapidly growing intra-Asia trade. In the drilling market, deepwater rigs are still the most resilient segment. Maintain OVERWEIGHT on the sector. Top picks are STM and MPM with YZJ appearing to have very favourable risk/reward at present.
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Consumer – China Strong Macau Visitations And Robust Home Appliance Sales During Labour Day Holiday
During the Labour Day holiday (1-5 May), Macau's visitor arrivals significantly beat the government's expectation. Retail and catering sales showed a modest improvement in terms of yoy growth compared with the Chinese New Year holiday, while home appliance sales continued to benefit from the trade-in programme, with premium products demonstrating robust growth. Maintain OVERWEIGHT on the China consumer sector. Our top picks include CR Beer, Mengniu, and Moutai.
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CGS CIMB |
LIM & TAN |
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Hartalega Holdings Path towards better profitability remains hard
■ 4QFY3/25 swung into a core net loss amid weaker sales volumes and higher depreciation, missing our forecast but in line with Bloomberg consensus. ■ Management’s plan to trim its workforce underpins the narrative that the operating environment remains tough. We cut FY26-27F EPS by 43-58%. ■ Reiterate Reduce, with a lower TP of RM1.75. Valuation at 59.7x FY26F P/E appears rich, in our view, given Hartalega’s subdued ROEs of 5-6% ahead.
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UOB Group / UOB ($34.98, unchanged) posted S$1.5 billion in net profi t for the first quarter of 2025 (1Q25), stable year on year (YoY), supported by broad-based growth, including record fee income and robust loan growth, coming in marginally below market expectaƟ ons of $1.54 billion. Given the lower than expected results and management’s more guided/ cautious guidance on their outlook, we are downgrading UOB to “HOLD” hoping that its decent valuations (9-10x PE, 5-6% yield, 1.2x book) and consensus target price of $38.80 will provide support/cushion. |
| LIM & TAN | MAYBANK KIM ENG |
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AIMS APAC REIT ($1.27, up 1 cent) reported a 5.2% year-on-year (“YoY”) rise in distributions to Unitholders and 2.6% YoY rise in distribution per Unit to 9.600 Singapore cents for the year ended 31 March 2025. AIMS APAC REIT’s market cap stands at S$1.0bln and currently trades at 1x PB and 7.6% yield. Consensus target price stands at S$1.43, represenƟ ng 12.6% upside from current share price. We have an “Accumulate” rating on AAREIT given its decent valuations.
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Singapore Post Ltd (SPOST SP) Special dividends incoming
Maintain BUY and TP of SGD0.77 SingPost will announce FY25E results on 15 May and we expect special dividends to reward and return cash to shareholders following the sale of its business in Australia and the unwinding of QSI minority crossshareholdings, which would bring a further cash inflow of SGD55.9m. We expect special dividends of at least SGD0.10 per share and further asset sales now that the election is over, such as its post offices and SingPost Centre, as well as the ongoing sale of its freight-forwarding business.
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