Singapore

• Delfi Ltd (DELFI SP) saw some impact from the weaker IDR and higher cocoa prices in 1H2024 but prospects for 2H2024 look more promising with less expected disruption.
• The company continues to roll out new distribution across modern trade independent and general trade as well as new variants for existing best-selling brands such as Silver Queen chocolate.
• The company remains confident that the cocoa price will decline from current levels although it may remain higher than historic levels. Valuations remain attractive. 

• Inventory lowest since February 2024
• Arbitrage widens for African and Indonesian rubber
• Expansion in imports & exports in August

• Schedule of S-REITs & Property Trusts Earnings or Business Updates ParkwayLife REIT 16-Oct After Market Business Update 18-Oct Before Market Business Update CapitaLand Integrated Commercial Trust 5-Nov Before Market Business Update 5-Nov Before Market Business Update 5-Nov Before Market Financial Results.

• EUR 650 mn Oradea plant to start commercial production in 2025
• EUR 250 million for plant comes in EC-approved state aid and EIB loan 
• Nokian sets up new production line for heavy tire inner tubes at Nokia 

• Institutions were net sellers of Singapore stocks over the five trading sessions spanning Oct 11 to Oct 17, with S$144 million of net institutional outflow, partially reversing the preceding 10 sessions of S$251 million net inflow.
• This has brought net institutional flow in the 2024 year to Oct 17, back to a net outflow of S$21 million.
• Leading the net institutional outflow over the five sessions through to Oct 17 were United Overseas Bank, Singapore Telecommunications, Singapore Airlines, Capitaland Ascendas REIT, Keppel, Capitaland Integrated Commercial Trust, Genting Singapore, Seatrium, Mapletree Pan Asia Commercial Trust and Jardine Matheson Holdings.

• Requests for retraction in contracts by buyers 
• Oversupply of spot cargoes feeds pessimistic expectations

• Short-term 20-day MA remained elevated through September to mid-October 2024  
• SIR20 traded at a discount to futures  
• Processors in Thailand and Indonesia faced more margin pressure due to high raw material costs  
• The forward curve shows October 2024 prices at their highest for the year

• Consumption declines by .3% to 356,000 tons in Q1 FY 25
• ATMA says April-Sept 2024 production 37% lower year on year
• ATMA asks Rubber Board to expedite data publishing

• Over the past 4 weeks, the iEdge S-REIT Index declined 2.1% after a rally anticipating the 50 bps rate cut on Sep 18, with a total 3Q24 gain of 17.5%.
• The S-REIT Sector is now among the top four Singapore stock sectors for net institutional inflows since June 30.
• Mapletree Logistics Trust has seen the fifth highest net institutional inflow within the Sector, while Suntec REIT, Keppel DC REIT and Acrophyte Hospitality Trust make up the five trusts with the highest 2H24 to Oct 15 net institutional inflow.

• Integrated logistics company COSCO SHIPPING International (Singapore) is combining acquisitions and other investments with a focus on digitalisation and sustainability to grow.
• Since 2018, the company has invested significantly, including acquiring logistics company Cogent Holdings, to shift its main business from ship building, ship repairing and marine engineering to integrated logistics.
• COSCO SHIPPING International (Singapore) Co., Ltd. aims to become the best integrated logistics service provider in South and Southeast Asia.

• Keppel Ltd, once renowned for its offshore marine and real estate businesses, is undertaking a fundamental transformation to become a global asset manager with S$200bn in funds under management (FUM) by 2030.
• It is unprecedented for an industrial operator to successfully transform into an asset manager of such scale.
• As such, close attention ought to be given to the progress and prospects of Keppel’s transformation. 

• Dyna Mac Holdings (DMHL SP) disclosed a revised conditional offer from Hanwha Aerospace (012450 KS) and Hanwha Ocean (042660 KS) at S$0.67, an 11.7% premium to the initial S$0.60 offer.
• The Estate (largest shareholder) stated that the previous S$0.60 offer was not compelling. The final offer addresses most of the Estate’s valuation concerns.
• The Estate’s view and IFA opinion in the circular (despatched by 23 October) will be crucial to the acceptance rate. They are likely to support the final offer. 

• 10 Questions for CNMC Goldmine Holdings What is CNMC Goldmine’s business about and what are some of its key business segments? Our flagship project, the Sokor Gold Field, spans 10 square kilometers and has been producing gold for more than a decade.
• Given that a large portion of CNMC Goldmine’s revenue is tied to gold prices, how does the Group manage the potential volatility?.

• On the 11th September, Hanwha Ocean (042660 KS) and Hanwha Aerospace (012450 KS), collectively holding 25.36%, made a S$0.60/share cash Offer for shares not owned, conditional on a 50% acceptance.
• The transaction stalled on the 24th September, when the estate of Dyna-Mac’s founding shareholder, Desmond Lim Tze Jong (holding ~35% currently) reckoned the Offer “does not adequately reflect” Dyna-Mac’s value.
• Hanwha Group has now bumped terms by 11.67% to S$0.67/share, best & final. That’s a 35.4% premium to undisturbed, and a decade high. No word, yet, from the Lim estate.

• USTR clamping 50% duty on Chinese gloves from Jan comes in handy
• Over 35% Malaysian rubber glove exports directed to the US
• Malaysia’s rubber and products exports rise to RM15.5 bn in H1 2024

• JK Tyres to pump in INR 1400 crore in two-three years
• Apollo Tyres consolidates R&D in Europe
• Gravita India to acquire waste tire recycling plant in Romania 

• Institutions were net buyers of Singapore stocks over the five trading sessions spanning Oct 4 to Oct 10, with S$211 million of net institutional inflow, adding to the preceding five sessions of S$50 million net inflow.
• Leading the net institutional inflow over the five sessions through to Oct 10 were DBS Group Holdings, Seatrium, Hongkong Land Holdings, Wilmar International, iFAST Corporation, Genting Singapore, SATS, Sembcorp Industries, Singapore Exchange and Frasers Logistics & Commercial Trust.
• Its 1HFY24 (ended June 30) net profit of S$0.3 million compared to a net profit of S$0.4 million for 1HFY23.

• Singapore-headquartered digital asset exchange SDAX has closed its US$50 million Series B2 funding round led by Oman-based Muscat Precious Metals Refining Company.
• This follows a US$18 million Series B round in 2021 led by PSA International, Straits Trading Company, and New Horizon Global.
• The new funds will be used for client acquisition and adding new business lines, such as wealth and fund management.

• Delay in EUDR to lead to renegotiation of premium
• Talks of removal of Ivorian cup lump ban

• This is a follow-up research note on MoneyHero Group, a company that has firmly positioned itself as a rising star in Southeast Asia’s fintech landscape.
• The company boasts of remarkable results in Q2 2024.
• With revenue surging by 24% year-over-year (YoY) to $20.7 million, driven largely by a massive 68% revenue growth in its Singapore market, MoneyHero is rapidly emerging as a dominant force in the personal finance and digital insurance aggregation space.

• Rubber Board new and replanting subsidy program starts rolling  
• RRII, IOCL sign MoU to boost research in process oils  
• Rubber Board stalls Kerala Govt move to shut Central Nursery 

MoneyHero’s Q224 results reflect management’s strategy of growing market share in its core geographies, as it invests in advertising, customer rewards and its platforms. Approved application conversion, a key driver of revenue, continues to improve as MoneyHero upgrades the customer experience and broadens its product range. Given the elevated investment, we have lowered our adjusted EBITDA expectations for FY24 through to FY26, which lowers our DCF valuation ($2.86/share versus $5.17/share previously). Management expects to achieve monthly positive adjusted EBITDA during Q424. We expect profitability to subsequently improve as the group benefits from operational leverage and continues to grow market share.

• On higher revenue & cost constraint initiatives, the company’s 1H 2024 EBITDA loss margin narrowed compared to 1H 2023 and OMH expects 2H24 cost containment measures, anticipated revenue growth – supported by a higher total value of contracts signed in 3Q24 – to drive further margin improvement.
• As a result, OMH anticipates further reduction in EBITDA loss in 2H 2024 as it maintains measures to optimize its cost structure and operational efficiency.

• SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
• The company already has commercialized products that are proven to improve patients’ lives.
• The company announced a financing deal that helps to pay off debt and adds cash at good terms.

• Since late August, institutional investors net bought S$1.4 billion in Singapore stocks, marking a significant turnaround from the S$1.3 billion net outflow earlier in the year.
• The 10 stocks with the most net institutional inflow included the STI banks and Singtel, averaging 5.2% total returns, while the remaining six stocks averaged 14.9% total returns.
• On 9 Oct, Singapore’s Structured Warrants market saw its highest trading turnover since Jan 2019, driven by significant moves in the Hang Seng Index-tracking markets, while the 20 most traded Singapore stocks with significant Greater China revenue have averaged 22% total returns since Sep 20, paralleling the FTSE China A50 & CSI 300.

• Huaqing Petroleum to set up plant worth US$1.39 billion in Hunan
• Linglong commences serial production at its Serbia plant 
• ZC Rubber Group cements network for supply to Nordic countries

• TeamSolve, a Singapore-based startup developing AI solutions for the industrial and utilities sectors, has completed a US$2.5 million seed financing round anchored by SGInnovate and the US-based early-stage fund for water entrepreneurs Burnt Island Ventures.
• Founded in 2022 by Mudasser Iqbal (CEO), Michael Allen, Ami Preis, and Robin Wong, TeamSolve has developed a generative AI-powered copilot designed for industrial operators. The copilot is a knowledge twin that provides an “accurate”, real-time view of asset health.
• It can also support managers by improving planning for asset renewals and crew dispatch.