Singapore Daily Briefs | Page 27 of 86

May 20

Daily Brief Singapore: Grab Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Grab: Strong Earnings Beat Fails to Impress Market as Growth Rates Decelerating

Grab: Strong Earnings Beat Fails to Impress Market as Growth Rates Decelerating

By Shifara Samsudeen, ACMA, CGMA

Grab Holdings (GRAB US) ’s share price dropped by about 15% despite reported revenue and adjusted EBITDA losses beating consensus estimates.
Deliveries’ growth has started falling as more people preferring to dine-out. Grab’s incentive optimisation also has contributed to the fall in growth rates.
Grab’s aggressive ambitions to turn around profitability is a significant downside risk as it will impact growth going forward and force the company to invest back on growth.

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May 19

Daily Brief Singapore: Sea , Golden Energy & Resources and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Sea (SE US) – Into the Looking Glass
Golden Energy: IFA Says Fair & Reasonable. It Is Neither
Golden Energy (GER SP): Art of the Lie as the IFA Says Offer Is Fair and Reasonable

Sea (SE US) – Into the Looking Glass

By Angus Mackintosh

Sea Ltd’s 1Q2023 results showed its ability to sustain profitable growth with a vibrant performance from e-commerce and fintech, offset by slower digital entertainment but with visible stabilisation.
E-Commerce showed strong performance in Asia, with Brazil making significant progress towards profitability, whilst digital financial services were boosted by a sizable loan book and more diversified funding costs.
Sea Ltd continues to demonstrate its cost leadership and ability to expand its total addressable market while sustaining profitability through better infrastructure and user experience rather than pure promotional spending.

Golden Energy: IFA Says Fair & Reasonable. It Is Neither

By David Blennerhassett

Responding to SIAS and the SGX, the Widjaja Family revised terms such that Golden Energy (GER SP) shareholders opting for an all-cash payout would receive S$0.973/share, up from S$0.846/share.
The Offer remains low-balled. The Offer should include a similar in-specie of the Stanmore Coal (SMR AU) stake together with a cash-out option. This is the most transparent approach.
The Circular is out and the IFA reckons the Offer is fair & reasonable – despite a fair value of S$0.574/share for Stanmore versus the Exit Offer of A$0.181/share.

Golden Energy (GER SP): Art of the Lie as the IFA Says Offer Is Fair and Reasonable

By Arun George

The IFA has concluded that the Widjaja family’s offer for Golden Energy & Resources (GER SP) is fair and reasonable. The EGM will be held on 9 June.
The IFA has justified its conclusion based on a convoluted methodology that has serious flaws. A fairer SOTP valuation is 37% higher than the IFA’s SOTP valuation range.
Notably, Dian Swastatika Sentosa (DSSA IJ) will abstain from voting on both resolutions. While the prospect of a bump is diminishing, the offeror is yet to declare the offer final.

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May 18

Daily Brief Singapore: Sea and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Shopee Enters a New Era of Slower GMV Growth and Higher Fees for Sellers
Sea Ltd: Free Fire’s Downfall, Shopee’s Struggles, Is Fintech the Next Challenge?
[Sea Limited (SE US, SELL, TP US$60) Target Price Change]: Cut Gaming Revenue and Margin Forecast

Shopee Enters a New Era of Slower GMV Growth and Higher Fees for Sellers

By Simon Torring

Shopee, Southeast Asia’s largest e-commerce player, has been on a strict financial diet to reach profitability in the last year.
That’s been welcome news for shareholders of its listed parent, Sea Ltd, but more challenging for sellers on the platform who have faced lower sales growth and higher selling costs after years of heavily subsidised operations.
In this blog post we report on the most important figures from Shopee’s newly published Q1-2023 results (released 16 May) as well as the key implications for e-commerce sellers in Southeast Asia.

Sea Ltd: Free Fire’s Downfall, Shopee’s Struggles, Is Fintech the Next Challenge?

By Oshadhi Kumarasiri

Sea (SE US)‘s shares dropped by 18% as its operating profit fell short of consensus by around 60% at $125m, compared to the expected $311m.
Shopee’s revenue shows improvement due to increased monetization, but there are no signs of exponential growth potential in operating profit.
Projected decline in paying users poses further downside for Free Fire, while the previously positive fintech segment underperformed in Q1 with revenue and operating profit below expectations.

[Sea Limited (SE US, SELL, TP US$60) Target Price Change]: Cut Gaming Revenue and Margin Forecast

By Shawn Yang

SE reported C1Q23 revenue/non-GAAP net income in-line/(37%) vs. cons., and (3.2%)/(31%) vs. our est. Profit miss is mainly due to the 53% YoY decline in game revenue
We suggest that 1) game development and S&M cost cutting, as well as 2) disappointing game content updates during 1Q23, lead to the weak result;
In the long run, we still expect Shopee growth to be SE’s major issue, as TikTok continues to grow rapidly. We maintain SELL and cut TP to US$ 60.

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May 17

Daily Brief Singapore: CapitaLand Ascendas REIT, AEM, Penguin International, Singtel and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Capitaland Ascendas REIT Placement – Good Track Record and Most Deals Have Performed Well
AEM Holding: Weak 1Q23 Not a Surprise, Hoping for Better FY24
Penguin Int’l (PBS SP): Chairman & Dymon’s Bumped & Final Offer
5 in 5 with Singtel – Empowering Every Generation

Capitaland Ascendas REIT Placement – Good Track Record and Most Deals Have Performed Well

By Ethan Aw

CapitaLand Ascendas REIT (CLAR SP) is looking to raise up to S$459m (US$344m) in its primary placement. The proceeds will be used for acquisition, redevelopment and debt repayment purposes.
The deal will be a large one to digest at 15.8 days of three month ADV and 3.9% dilution.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

AEM Holding: Weak 1Q23 Not a Surprise, Hoping for Better FY24

By Nicolas Van Broekhoven

AEM reported weak 1Q23 showing significant revenue and margin pressure across the board
The company mentioned it was an indirect beneficiary of AI and ChatGPT hype going forward
AEM could achieve 0.40 EPS in FY24 once the semiconductor industry rebounds. Fair Value of 6 SGD is unchanged.

Penguin Int’l (PBS SP): Chairman & Dymon’s Bumped & Final Offer

By David Blennerhassett

On the 4 May, Singapore-based builder and operator of aluminum high-speed boats Penguin International (PBS SP) announced a Voluntary Unconditional Offer from its Chairman and Dymon Group at S$.82/share.
The Offer Price was a lifetime high and likely sufficient to push for compulsory acquisition. However, the Offerors have now sweetened terms to S$0.83/share.
As to be expected, this is trading to terms. Volume remains light.

5 in 5 with Singtel – Empowering Every Generation

By Geoff Howie

5 in 5 with Singtel – Empowering Every Generation

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May 16

Daily Brief Singapore: Penguin International, Sea and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83
Sea Ltd: Facing an Uphill Battle for Sustainable Profits

Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83

By Arun George

Penguin International (PBS SP) disclosed a revised and final voluntary unconditional offer from Dymon Asia, Executive Chairman and Managing Director at S$0.83, a 16.9% premium to the undisturbed price.
Unlike the previous offer, the final offer will not be reduced for the FY22 dividend. The final offer price is attractive and represents a 10-year share price high.
An attractive offer makes it also likely that the offeror hits the 90% compulsory acquisition threshold, which requires a minority acceptance rate of around 44%.

Sea Ltd: Facing an Uphill Battle for Sustainable Profits

By Oshadhi Kumarasiri

Sea (SE US) may achieve around $3.0 billion in 1Q23 revenue, in line with consensus, but is likely to miss the consensus OP estimate of $309 million by approximately 10%.
Shopee’s profitability is at risk without sustained revenue growth. If the cost-cutting strategy persists, losses are expected by 3Q23 or possibly sooner with a strategy shift.
Amid Free Fire’s decline and Shopee’s potential losses, the fintech business stands as the sole bright spot.

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May 15

Daily Brief Singapore: Lian Beng and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

By David Blennerhassett

In response to media feedback calling out the low-balled Offer, the Ong family bumped the Offer Price for Lian Beng (LBG SP) by 9.7% to S$0.68/share and declared terms final.
At 0.43x P/RNAV, and with the bulk of the assets related to investment/development property, the price was still wrong,
The Circular is now out. The IFA considered terms to be not fair and not reasonable. The same opinion as in the 2021 Offer.

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May 13

Daily Brief Singapore: Flash Coffee and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Flash Coffee Closes $50m Funding, Targets Profitability by 2024

Flash Coffee Closes $50m Funding, Targets Profitability by 2024

By Tech in Asia

Rocket Internet-backed Flash Coffee has officially closed its series B round totaling US$50 million.
In a statement, the company said it would expand deeper into Indonesia, with plans to open a branch in Surabaya in July. It already has a presence in Jakarta and Bandung.
Besides Indonesia, Flash Coffee also operates in Singapore, Hong Kong, South Korea, Thailand, and Taiwan.

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May 12

Daily Brief Singapore: Sea and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

[Sea Limited (SE US, SELL, TP US$62) Earnings Preview]: Increase Spending in ECommerce and Gaming

[Sea Limited (SE US, SELL, TP US$62) Earnings Preview]: Increase Spending in ECommerce and Gaming

By Shawn Yang

We expect that Shopee is spending more in recent months to defend from TikTok Ecommerce’s growth;
Further, we see increased marketing to maintain <FreeFire’s> user base, especially in Indonesia; We suggest that SEA’s strong margin performance in 4Q22 was temporary.
We forecast that 1Q23’s net margin is 11.2% vs. 4Q22’s 17.9%. We maintain our SELL rating and US$ 62 TP, implying 27x FY23 P/E.

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May 11

Daily Brief Singapore: Pan United Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

kopi-C with Pan United’s Group Head of Corporate Development: “We are decarbonising the world with concrete”

kopi-C with Pan United’s Group Head of Corporate Development: “We are decarbonising the world with concrete”

By Geoff Howie

kopi-C with Pan United’s Group Head of Corporate Development: “We are decarbonising the world with concrete” Jim Teh, Group Head of Corporate Development of Pan United, believes in fighting climate change by innovating in its concrete products.
Pan-United Corporation Ltd (Pan-United) is a listed Asia-based technology company (SGX:P52) catalysing change in the ready-mix concrete and logistics space.

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