Singapore

• Grab Holdings looks set to move toward cashflow breakeven in 2H2024 having hit adjusted EBITDA breakeven in 3Q2023 as it successfully struck a delicate balance between growth and profitability.
• The sale of 75% of Tokopedia by GoTo may mean more intense competition in Indonesia as it focuses on online delivery services but Grab is well-positioned to deal with this.
• 2024 will see the potential completion of the Transcab deal plus a potential acquisition in food delivery increasing scale and competitiveness. Valuations are attractive relative to growth and financial position.

• Singapore Airlines (SIA SP) (SIA) November operating statistics were good, passenger load factor rose by 1.9ppt YoY to 87.8%, and cargo load factor rose by a similar quantum  
• Market observations suggest yields should remain at high levels and cost items such as fuel and USD-denominated items on a favorable downtrend 
• If this performance continues, SIA will beat consensus easily. We recommend BUY with a TP of SGD8.07 – pegged to 10x FY24 PE. (+26% UPSIDE)  

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• JSW Infrastructure
• Lippo Malls Indonesia Retail Trust
• SK Hynix

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. NagaCorp Ltd
2. China Jinmao Holdings
3. Hopson Development
4. Greentown China
5. Seazen (Formerly Future Land)

and more…

• There have been several developments in the Southeast Asian e-commerce space over the past few days that we believe will have a negative impact on Sea (SE US)’s financial performance.
• A few days ago, TikTok, owned by ByteDance (1439927D CH), announced a $1.5bn investment in Tokopedia.
• Today, Nikkei reported that Alibaba (ADR) (BABA US) has infused an additional $634m into Lazada, its Southeast Asia e-commerce unit, to enhance its competitive position in the face of escalating competition.

For our next Corporate Webinar we are glad to welcome Lendlease Global Commercial REIT’s CEO, Mr Kelvin Chow.

In the upcoming webinar, Kelvin will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh. Angus will also be providing an industry overview, featuring landscape commentary and returns analysis. The Corporate Webinar will include a live Q&A session.

In the spirit of the festive season, one of the attendees will also be awarded an Amazon Kindle as part of our lucky draw.

The Corporate Webinar will be hosted on Tuesday, 9 January 2024, 19:00 SGT.

About Lendlease Global Commercial REIT

Lendlease Global Commercial REIT’s portfolio comprises two leasehold properties in Singapore, Jem (office and retail property) and 313@somerset (retail property), and three freehold Grade A office buildings, Sky Complex, in Milan. It has a total net lettable area of approximately 2.1 million square feet, with an appraised value of S$3.65 billion. Other investments include a stake in Parkway Parade and the development of a multifunctional event space on a site adjacent to 313@somerset.

Lippo Malls Indonesia Retail Trust has launched a capped tender offer for its two outstanding USD notes: the 7.25% ’24s, with USD 231.8 mn outstanding; and the 7.5% ’26s, with USD 181.7 mn outstanding. The purchase prices will be 76.5 for the ’24s, and 66.5 for the ’26s. Funding for the tender offer would be from, and capped by the size of, an INR 2.5 tn (SGD 215 mn) secured amortising term loan facility.

We recommend that holders of the ’24s and ’26s tender their notes.

• OUE Commercial REIT (OUECT SP) is one of Singapore’s best-quality commercial REITs, with a well-diversified and high-quality portfolio of assets across office, hospitality, and retail.
• A recent Smartkarma webinar with the management revealed a positive outlook for the company’s portfolio across the office, retail, and especially hospitality with some well-times asset enhancement initiatives bearing fruit.
• OUE Commercial REIT has strong sustainability credentials, both through its green-certified buildings, and an increasing portion of sustainable finance, with some well-timed recent financing. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Yanlord Land

• OCBC has seen its mkt cap RISE by ~4% YTD. This is stark contrast to the ~6.5% lower mkt cap at DBS and around 10% lower mkt cap at UOB.
• Net interest income had been strong, and this likely slows, a lot. Other areas are far from strong. Credit costs are up 103% YoY at 9M23.
• Profit from insurance is down 12% YoY and down 16% QoQ, in 3Q23 (Great Eastern). Profit from associates is -1% YoY in the quarter and only +1% YoY

• BeeX, a Singapore-based maker of autonomous underwater robots, has raised US$2 million in a round co-led by Earth Venture Capital and ShipsFocus Ventures.
• The startup will use the funds to speed up its go-to-market efforts for autonomous offshore wind farm inspections in Europe.
• BeeX was established in 2018 by Grace Chia and Goh Eng Wei, researchers at the National University of Singapore.

• Credit penetration in Pakistan has historically been low, due in part to the country’s relatively subdued macroeconomic landscape.
• This can be seen in the student loans segment, which currently lacks firms that are focused on the vertical.
• Aleena Nadeem, a former tech investor and MIT graduate, is changing this.

•  Pawprints Inspired, an insect-based pet food company in Indonesia, has received US$1.7 million in funding led by Creative Gorilla Capital (CGC), a collaboration between Future Creative Network and Vynn Capital.
• Altrui (Japfa Comfeed Family Office), Tujuh Bersaudara Investindo (Tigaraksa Satria Family Office), and several individual investors participated.
• In addition, Pawprints Inspired also acquired an unnamed Japanese pet food company to expand its portfolio.

• Authentick, the creator of Authentickator, a wallet-free platform for easy browsing, purchasing, and authentication of digital collectibles, has successfully raised a US$4 million seed round, with Menyala as the lead investor.
• The fresh funds will be used to execute the company’s roadmap, which encompasses expanding the marketplace, fostering collaborations with brands and creators, enhancing services, and advancing the product roadmap.
• Authentickator has also announced partnerships with Southeast Asia’s leading e-commerce platform Lazada, social media giant TikTok, and Shopify to enable select users to easily purchase digital collectibles directly from each platform using traditional payment methods.

• Drive Lah ComfortDelGro seems to be increasing its involvement in the automotive startup space this year.
• The Singapore-based taxi firm backed mobility-focused impact fund Shift4Good in January and battery recycling startup Neu Battery Materials in July.
• Most recently, ComfortDelGro invested US$2 million in Drive Lah.

• Digital finance platform for SMEs in Southeast Asia, Funding Societies (Modalku in Indonesia), has secured US$7.5 million in debt funding from Norwegian government-owned development financial institution (DFI) Norfund.
• The fintech lender will channel the funds via its tailored financing solutions to the SME segments across all five markets.
• This is Norfund’s first debt transaction with a fintech SME lender in Southeast Asia.

• Lending platform Lendela said it hit profitability in Singapore and Hong Kong, as well as doubled its revenue growth in the past year.
• The Singapore-based company is now looking to expand its presence across Asia Pacific.
• To bankroll these plans, Lendela has secured US$5 million in a series A funding round led by Chocolate Ventures.