External broker reports(aggregated public sources), RHB Invest

RHB Invest

External broker reports(aggregated public sources)

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

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Equity Bottom-Up

DBS Group Holdings Limited and its subsidiaries provide a variety of financial services.  The Company offers services including mortgage financing, lease and hire purchase financing, nominee and trustee, funds management, corporate advisory and brokerage .  DBS Group also acts as the primary dealer in Singapore government securities.

<ul><li>Against the backdrop of a weak domestic economy and an uncertain global economic outlook, and an above-mean valuation of 1.4x P/BV, DBS's share price will likely be range-bound in the near term.</li><li>Although the latest S$2.3m penalty imposed by the Monetary Authority of Singapore (MAS) will have an immaterial impact on earnings, this once again highlights DBS’ operational shortcomings.</li><li>Singapore’s non-oil domestic exports (NODX) fell by a sharper-than-expected 14.7% y-o-y in May, resulting in a NODX contraction of 14.6% for Jan-May 2023. y 3% y-o-y in FY24F, before rising 4% y-o-y in FY25F.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Against the backdrop of a weak domestic economy and an uncertain global economic outlook, and an above-mean valuation of 1.4x P/BV, DBS's share price will likely be range-bound in the near term.Although the latest S$2.3m penalty imposed by the Monetary Authority of Singapore (MAS) will have an immaterial impact on earnings, this once again highlights DBS’ operational shortcomings.Singapore’s non-oil domestic exports (NODX) fell by a sharper-than-expected 14.7% y-o-y in May, resulting in a NODX contraction of 14.6% for Jan-May 2023. y 3% y-o-y in FY24F, before rising 4% y-o-y in FY25F.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DBS Group - Economic Headwinds, Above Mean Valuation

Singapore Airlines Limited provides air transportation, engineering, pilot training, air charter, and tour wholesaling services. The Company's airline operation covers Asia, Europe, the Americas, South West Pacific, and Africa.

<ul><li>We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e.</li><li>This is in line with historical P/B of 1.1x.</li><li>After an exceptional year in FY23 driven by early-mover advantage, we expect Singapore Airlines (SIA)’s net profit in FY24e and FY25e to decline by 19% and 43%, respectively, with tapering passenger yields and passenger load factors.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e.This is in line with historical P/B of 1.1x.After an exceptional year in FY23 driven by early-mover advantage, we expect Singapore Airlines (SIA)’s net profit in FY24e and FY25e to decline by 19% and 43%, respectively, with tapering passenger yields and passenger load factors.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Singapore Airlines (SIA) - Rising Pressure On Load Factors & Yields

Thai Beverage Public Company Limited produces a wide range of branded beer and spirits in Thailand.

<ul><li>We continue to like Thai Beverage for its strong market leadership in Thailand and Vietnam, and as a beneficiary to Thailand’s economic recovery and the return of tourists post COVID-19 in Vietnam.</li><li>We see earnings growth driven by better sales volume as consumption recovers.</li><li>Thai Beverage (SGX:Y92)'s 1HFY23 (Oct 2022 to Mar 2023) earnings came in at THB16bn (flat y-o-y) on the back of THB148bn revenue (+4% y-o-y).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We continue to like Thai Beverage for its strong market leadership in Thailand and Vietnam, and as a beneficiary to Thailand’s economic recovery and the return of tourists post COVID-19 in Vietnam.We see earnings growth driven by better sales volume as consumption recovers.Thai Beverage (SGX:Y92)'s 1HFY23 (Oct 2022 to Mar 2023) earnings came in at THB16bn (flat y-o-y) on the back of THB148bn revenue (+4% y-o-y).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Thai Beverage - Anticipating Consumption Recovery; Keep BUY

Uni-Asia Group Limited operates as an alternative investment company. The Company offers structured finance, ship charter arrangement, shipping and maritime asset management, real estate investment, and other related services. Uni-Asia Group serves customers in Asia.

<ul><li>The average charter rate in 1Q23 for Uni-Asia Group (SGX:CHJ) was US$12,423/day, a 33% y-o-y decline and below our US$14,500/day estimate for FY23e.</li><li>From April, the Baltic Handysize continued to weaken into June, a decline of around 30%.</li><li>New orders for Handysize vessels continue to be weak with industry supply expected to shrink 2.7% in 2023.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The average charter rate in 1Q23 for Uni-Asia Group (SGX:CHJ) was US$12,423/day, a 33% y-o-y decline and below our US$14,500/day estimate for FY23e.From April, the Baltic Handysize continued to weaken into June, a decline of around 30%.New orders for Handysize vessels continue to be weak with industry supply expected to shrink 2.7% in 2023.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Uni-Asia Group - Waiting For Supply To Bite

Sheng Siong Group Ltd is a retailer in Singapore.  The Company operates a groceries chain across Singapore. Sheng Siong's stores provide fresh and chilled produce, seafood, meat and vegetables, processed, packaged and preserved food products as well as general merchandise such as toiletries and essential household items.

<ul><li>Sheng Siong's share price has declined ~7% from S$1.77 to S$1.64, along with the wider market, including the STI Index, since our report Sheng Siong - Growth Traction Intact; Keep BUY in May.</li><li>Singapore’s supermarket retail sales has normalised earlier than expected. We had expected supermarket retail sales to normalise around May, but it grew 0.6% y-o-y and 0.1% m-o-m in April.</li><li>Prior to this, it declined y-o-y for 11 consecutive months since May 2022, due to the high base of robust supermarket retail sales resulting from COVID-19’s safe distancing restrictions in 2021.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sheng Siong's share price has declined ~7% from S$1.77 to S$1.64, along with the wider market, including the STI Index, since our report Sheng Siong - Growth Traction Intact; Keep BUY in May.Singapore’s supermarket retail sales has normalised earlier than expected. We had expected supermarket retail sales to normalise around May, but it grew 0.6% y-o-y and 0.1% m-o-m in April.Prior to this, it declined y-o-y for 11 consecutive months since May 2022, due to the high base of robust supermarket retail sales resulting from COVID-19’s safe distancing restrictions in 2021.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sheng Siong - Palatable Valuations; Keep BUY