Singapore

Yanlord’s FY 2023 results were robust in our view. The company reported solid top-line growth, albeit the margin contracted from a high base as projects were delivered outside of Shanghai. Still, cash flows were healthy, which supported meaningful debt reduction.

Yanlord’s near-term debt repayment risks have eased materially, after the company fully redeemed the YLLGSP 6.78 ’24s at maturity yesterday and successfully refinanced the USD syndication loan due in February 2024. The company’s next bond maturity will be in May 2026, when the USD 500 mn YLLGSP 5.125 ’26s come due.

• Comfortdelgro Corp (CD SP) share price has underperformed its tourism related transport operator peers.
• Key drivers are still strong, including the expected influx of Chinese tourists from visa-free travel arrangements.
• Valuation is still compelling, and it is not too late to own it.

• Grab Holdings reported nothing short of an impressive set of results for 4Q2023, booking another positive adjusted EBITDA but also an actual net profit and positive adjusted cash flow. 
• The company saw its mobility GMV come in above pre-COVID levels and deliveries GMV growth reaccelerated, while also reaching positive adjusted EBITDA for a second quarter.
• Grab aims to deepen its engagement with users through affordable and premium offerings and a laddered pricing approach, with additional focus on financial services and advertising to come in 2024.

• REIT Watch – Healthcare S-Reits outperform in February The resilience of the segment can be seen from the price performance of Singapore’s two listed healthcare S-Reits as well – First Reit and ParkwayLife Reit (PLife Reit).
• PLife Reit announced a DPU of 14.77 Singapore cents for the full year 2023, a 2.7 per cent increase year on year.

• Earnings Focus Reduces Buybacks & Director Acquisition Filings The Hour Glass led the buyback consideration tally, buying back 795,000 shares at an average price of S$1.55 per share over two sessions.
• Directors or CEOs filed eight acquisitions and one disposal while substantial shareholders filed three acquisitions and two disposals.

• Shopee – Sea’s largest business unit and Southeast Asia’s largest e-commerce platform – has reported negative EBITDA for most of the 8 or so years since its launch. 

• Investors now however appear to be looking for earnings growth. In 7 of the last 9 quarterly earnings reports, investors have rewarded the company every time it has reported earnings growth (its share price has gone up in the day after the release), and penalized when it has not.

• Based on our analysis (and subject to the disclaimer included below), we expect Shopee’s GMV and Revenue to improve in Q4 2023 (as compared to the previous quarter) along with its EBITDA, although earnings will likely remain in negative territory.

• We cut our SIA operating profit by 9% to S$2.6bn in FY24 and by 17% to S$1.5bn in FY25 versus consensus of S$2.1bn.
• SIA’s cost control is under-examined and we publish a deep dive on a concerning level of inflation relative to key peers, which actually escalated in 3Q24.
• Cargo broke even in peak season, and Scoot’s margins present a conundrum as it may need to be further utilization to help SIA with cost management.

• kopi-C with Lendlease REIT’s CEO The first Singapore REIT to reach net zero emissions, Lendlease Global Commercial REIT has its next target in sight: absolute zero by 2040.
• When it comes to sustainability, Lendlease Global Commercial REIT is ahead of its peers.

• THE iEdge S-Reit Index declined 5.6 per cent on a total return basis in the year to date, with declines also recorded in the FTSE EPRA Nareit Index series which track global Reits.
• The 10 S-Reits which recorded largest net retail inflows in the year to date were Mapletree Logistics Trust, Keppel DC Reit, CapitaLand Ascendas Reit, Mapletree Pan Asia Commercial Trust, CapitaLand China Trust, CapitaLand Ascott Trust, CapitaLand Integrated Commercial Trust, Frasers Logistics & Commercial Trust, CDL Hospitality Trusts, and ParkwayLife Reit.
• These 10 S-Reits contribute S$250 million in net retail inflows, or nearly 90 per cent of the combined net retail inflows in the year to date.

• Over the first seven weeks of 2024, the 25 largest weights of the Manufacturing Index saw varied performances from a 31% decline for NIO to a 24% gain for Food Empire.
• The largest Manufacturing Index weight is currently ST Engineering, which has consolidated on its 2023 gains over the past 7 weeks and scheduled to report its FY23 results on 29 Feb before the market open.
• Venture has booked the most net institutional inflow over the past seven weeks within the Manufacturing Index with S$43 million of net inflow.

• THE net institutional fund flows for the first six weeks of 2024 showed a similar trend as the same period in 2023, with net withdrawals of S$463 million.
• The net institutional fund flows indicate the direction and level of institutional investor activity across all stocks in the Singapore market.
• As many as 18 of the 20 stocks that booked the highest net retail inflow relative to market capitalisation also booked declines in total return, while Pacific Radiance and Asia Enterprises Holding were the exceptions, booking respective total returns of 7.2 per cent and 9.1 per cent over the six weeks.

• The operator of two medical clinics in Singapore – Singapore Institute of Advanced Medicine (SAM Holdings) is among the first in the nation to install the ProBeam Proton Therapy Solution, an advanced technology used to treat cancer.
• SAM Holdings made its debut on the SGX Catalist today.
• The Varian ProBeam Compact is capable of emitting pencil beam proton therapy to deliver precision proton beam therapy to treat cancer patients, placing the company at the forefront of medical technology in the field of radiation therapy for cancer treatment in Singapore.