Singapore

• INVESTMENT in artificial intelligence (AI) is booming worldwide – the frenzy fuelled by the release of ChatGPT last November has led to a surge in demand for data centres as well as the real estate investment trusts (Reits) that invest in them.
• NVIDIA shares marked an intra-day record high on Aug 24 of US$502.66 per share two days after the company’s earnings exceeded expectations.
• Singapore Reits with substantial data centre assets include Keppel DC Reit (KDCReit) and Digital Core Reit (DC Reit).

• Share buybacks by primary listed companies 25 – 31 Aug 2023 UOB again led the share buyback consideration tally, buying back 360,000 shares at an average price of S$28.41 per share, followed by Olam Group which bought back 3.25 million shares at an average price of S$1.25 per share.
• Between Aug 28 and 31, SunMoon Food Company non-independent and non-executive director Song XiaoJun acquired 2,055,500 shares at an average price of S$0.02 per share.

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. Country Garden Holdings Co
2. Yankuang Energy Group
3. Health And Happiness (H&H)
4. Xiaomi Corp
5. Anton Oilfield

and more…

“The brain is a complex organ, and also the least understood,” Pang Sze Yunn, co-founder and CEO of Singapore-based healthtech platform Neurowyzr, told Tech in Asia. 

According to Pang, early brain decline can take between 20 and 40 years before obvious conditions such as dementia, mental health diseases, or stroke occur.

“By then, therapies have little impact,” she added. “Traditional brain tests are inefficient, expensive and inaccessible.”

• Singapore-based IoT transaction platform, Beep, has announced the launch of what it claims to be Southeast Asia’s largest electric vehicle roaming (eRoaming) network.
• Hyundai Motor Group Innovation Centre in Singapore (HMGICS), Tribecar, EVFY, Singapore Electric Vehicles, and Quantum Mobility are among the initial entities to use the network.
• Beep also announced the successful completion of its seed funding round, led by GGV Capital and Wing Vasiksiri.

• After underperforming since listing, Digital Core REIT (DCREIT SP) has outperformed Keppel DC REIT (KDCREIT SP) over the last few months.
• However, Digital Core REIT (DCREIT SP) still trades at cheaper valuations as compared to Keppel DC REIT (KDCREIT SP). 
• There could be relative outperformance over the next few weeks and any underperformance can be used to enter positions in the pair. There is an important catalyst.

• CHOYS, a SaaS insurtech platform for corporate employees in Southeast Asia, has closed a US$1.1 million seed funding round with investors, including Wing Vasiksiri, Foremast, Antler, and Fintech Nation Fund. 
• The company will use the money for its go-to-market strategy across Southeast Asia and to bolster its product development initiatives.
• Founded by Sharon Li and Vanessa Chen, CHOYS aims to make work life more meaningful and humanised.

• Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
• The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
• Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

• Singapore stocks have booked net institutional fund inflow for three consecutive weeks ending 25 August.
• With four trading sessions for the month remaining, August is poised to be the first month local stocks have booked net inflows since Nov 2022.
• Back in November 2022, UOB posted a 12.4% return and booked the highest net institutional inflow in the Singapore stock market for that month with S$306 million of net inflow.

• Malaysia’s integrated re-commerce startup CompAsia has secured an undisclosed sum in a Series A investment round led by Gobi Partners.
• This capital will help the startup expand across various touchpoints, bolstering human resources, training, and operational capabilities.
• Additionally, the funds will be instrumental in optimising the firm’s digital assets and marketing strategies, specifically focusing on penetrating new markets like the Philippines, Thailand, and Indonesia.

• Share buybacks by primary listed companies 18 – 24 Aug 2023 UOB led the share buyback consideration tally, buying back 360,000 shares at an average price of S$27.93 per share, followed by Sembcorp Industries which bought back 1,095,000 shares at an average price of S$5.35 per share.
• Between Aug 17 and Aug 23, QAF joint group managing director and executive director Lin Kejian acquired 1,586,000 shares at an average price of S$0.80 per share.

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.

• Yanlord Land

• Forrest Li: “Look How They Massacred My Boy” When CEO Forrest Li announced SEA Ltd’s Q2 results in mid-August, he was probably expecting a pat on the back.
• After all, the team at SEA Ltd had slogged through fire and brimstone over the past year trying to bring the company back to profitability.
• After all, the team at SEA Ltd had slogged through fire and brimstone over the past year trying to bring the company back to profitability.

• Singapore-based office S-Reits resilient despite concerns sparked by WeWork However, Singapore-listed real estate investment trusts (S-Reits) are showing signs of resiliency in their office portfolios.
• Suntec Reit’s Singapore office portfolio recorded year-on-year growth in both gross revenue and net property income for H1 FY2023 by 8.1 per cent and 1.1 per cent respectively, citing higher occupancy and rent at its Suntec City Office and One Raffles Quay.

• Grab Holdings (GRAB US) released another set of positive results but this time the balance between profitability and growth was well-struck, as it reduced incentives yet increased its market share. 
• Grab saw GMV growth in both deliveries more notably in mobility, with revenues growing at a faster pace and adjusted EBITDA surprising on the upside, bringing forward breakeven to 3Q2023. 
• Prospects for 2H2023 look even better with Grab’s affordability initiatives gaining traction and improving retention and profitability.

• Grab’s share price moved up by about 10% following its 2Q2023 earnings announcement as the market got excited over the company’s prospect of reaching profits in the next few quarters.
• Mobility GMV is nearing pre-Covid levels, however, there has been a sharp increase in incentive spending during 2Q2023 suggesting incentives is a key driver of GMV growth.
• Our analysis on deliveries biz suggests that segment’s margins have very little room for improvement and further reducing incentives could stall growth going forward.  

• Mirxes, a Singapore-headquartered RNA technology company with a focus on cancer screening, plans to raise up to US$100m via a Hong Kong listing.
• In this insight, we examine its key product, GASTROClear’s technical and clinical data. We also look at the competitive landscape.
• We are of the view that the company’s product, despite improving the accuracy over incumbent competitors marginally, is not a killer product and will face challenges in ramping up sales.

• kopi-C with OUE C-REIT’s CEO: “Diversity is our strength” OUE Commercial REIT’s CEO Han Khim Siew believes that team diversity is essential to delivering on the REIT’s targets.
• OUE C-REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, and/or hospitality and/or hospitality-related purposes, as well as real estate-related assets.

• kopi-C with OUE C-REIT’s CEO: “Diversity is our strength” OUE Commercial REIT’s CEO Han Khim Siew believes that team diversity is essential to delivering on the REIT’s targets.
• OUE C-REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, and/or hospitality and/or hospitality-related purposes, as well as real estate-related assets.