Singapore

• AEM reported stellar 1H22 results beating street estimates as well as far outpacing their own guidance. CHIPS act in USA will benefit company in FY23.
• Stock reaction (+6%) muted despite great outlook and management optimism. Despite record results and strong outlook, stock is down YTD. 
• AEM is cheap trading at only +/-10x FY22 EPS, too low given the growth and consistent margins profile. Fair Value remains 8 SGD.

• Jardine Matheson Holdings (JM SP) (JMH) has shed ~8% since MSCI said it was cutting the conglomerate’s weighing in two indices.
• The reweighting follows the cancellation of the 59% shareholding in JMH held by Jardine Strategic Holdings (JS SP), which was privatised last year.
• I see the discount to NAV at ~40%, right at the 12-month -2 STD level. JMH bought back ~149mn shares in the 1Q22, paying ~US$59/share, 17% above the current price.

• Consensus has revised down Sea Ltd (SE US)’s inflated estimates before 2Q22 earnings due on 16th August 2022.
• These revised estimates are on the optimistic side as consensus still thinks that 1Q22 was just a one-off drop.
• However, our analysis of Google Play and App Store data suggests that Sea Ltd’s gaming and e-commerce popularity has further deteriorated from the 1Q22 level.

• Ascott Residence Trust (ART SP) is looking to raise US$110m (S$150m) in its primary offering to partially fund the acquisition of nine properties in France, Vietnam, Australia, US and Japan.
• The deal is a relatively large one to digest at 23.6 days of three month ADV, although it would represent just 3.9% of current mcap. 
• The proposed acquisitions are expected to be accretive, increasing DPU by 2.8% and would increase the REIT’s proportion of stable income to 71%, up from 69% in end proforma-FY21.

• Comfortdelgro Corp (CD SP) operating number has improved during COVID compared to before COVID such as fixed asset turnover from 0.4x to 0.8x. 
• Public transport and taxi operating numbers adjusted for government relief went through the roof.
• It is trading at 6x EV/EBITDA vs Singapore Airlines (SIA SP) at 13x EV/EBITDA. 

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.

• Azure Power Global Ltd
• Olam Group

• It is a recovery play yet its has lagged to SIA. 3 year basis, Comfortdelgro is -46% yet SIA has recovered to only -15% despite the former having better numbers.
• SIA Free Cash Flow is often in red while Comfortdelgro’s has been consistently on the green. 2021 Comfortdelgro’s FCF was SGD +433 million while SIA was SGD -83 million.
• Taxi demand has gone up through the roof judging from the price you have to pay. 

• Coca-Cola has been implementing various growth initiatives off-late to continue expanding its top-line.
• The company had a good quarter and delivered an all-around beat and increased its volume and value share during the quarter.
• Coca-Cola continued its strong marketing efforts and launched end-to-end digital-first brand campaigns for smartwater and vitaminwater.

• General Electric has started seeing a solid recovery in its aerospeace business which has become an important growth driver for the company.
• Macro pressures and supply chain have affected the revenue adversely by approximately 5%.
• The company has recently unveiled the innovative branding of its new companies, GE Vernova, GE Healthcare, and GE Aerospace.

• Mondelez International has been looking to strengthen its position in the snacking category and the recent $2.9 billion acquisition of Clif Bar is a key step in the process.
• The company managed to deliver a strong result and an all-around beat with strong bottom and top-line performance growth in overall categories and regions.
• These results, along with ongoing revenue growth management, simplification, and cost discipline, are delivering strong cash flow and robust profit dollar growth.

• AMTD Digital (HKD US) shares are up 230x since its listing at US$7.80 per ADS on 15 July. Its market cap is a staggering US$334 billion.
• AMTD Idea Group (AMTD US) accounts for 99.4% of the voting power. In January 2022, it increased its AMTD Digital shareholding to 97.1% of outstanding shares at US$1.2 billion valuation.
• AMTD Digital’s financials are uninspiring and cannot justify the share price ramp. No sane valuation methodology can support the share price.    

• AMTD Digital is the biggest bubble of 2022, which is ready to pop. AMTD Digital provides digital solutions platform in Asia.
• AMTD Digital currently has a market cap of US$371 billion (US$2,002 per ADS share) (as of 1:40PM NYC time). The company’s market cap is more than JPMorgan Chase & Co.
• No doubt, AMTD Digital is the biggest bubble in 2022 and the bursting of this huge bubble will also devastate (mostly) retail investors in the US. 

• Raffles Medical (RFMD SP) reported strong H1 2022 results, with double-digit growth in revenue and net profit. With the resumption of international travel, the company is seeing increasing patients.
• While COVID-related revenue is declining, the company’s hospital business will benefit from the returning of foreign patients as well as resumption of elective surgeries for the domestic patients.
• Raffles Medical has received the approval to set up an IVF clinic in Hainan province of China.

• Last week, SGX and the New York Stock Exchange announced a collaboration focusing on dual listings and new products (primarily ETFs)… and all with an overarching ESG imperative.
• Typically, these kinds of announcements are met with a healthy dash of skepticism by investors but the SGX/NYSE agreement is a clear exception, deserving atypical early-stage optimism.
• Complementary skill sets (Right Partners), once-in-lifetime market opportunities (Right Place), and leveraging existing cabilities to meet current ESG investing demand (Right Products).

• There are 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• Two new deals were discussed this week on Smartkarma. The Scheme for Genex Power Ltd (GNX AU) ; and the off-market takeover for MACA Ltd (MLD AU).
• Key updates took place for: Australian Unity Office Fund (AOF AU) and Mapletree Commercial Trust (MCT SP).

• Sanjuro, the consortium behind Hwa Hong Corp (HWAH SP) proposal, now controls 51.29%. The Offer has turned unconditional in all respects. Ong directors previously holding out, will now tender. 
• The Offer will still close on the 1 August – it will not be extended. 
• Should Sanjuro fail to acquire less than 90% of disinterested shares, Hwa Hong will continue to remain listed. 

• This is our first report on cloud networking solutions provider, Arista Networks.
• The company had a strong quarter and generated record quarterly revenues of $877.1 million backed by a strong performance in software support renewals and services.
• Cloud titans were their strongest and largest vertical for the last quarter, followed by enterprise, cloud specialty providers and financials tied for second place, and service providers in fourth.

• This is our first report on Cloudflare, one of the leading cloud-based security solutions providers in the world.
• Cloudflare has recently equipped partners to deliver a comprehensive Zero Trust solution with the Cloudflare One Partner program.
• Moreover, the company recently expanded its platform zero trust for becoming the only provider of cloud-native with Network scale.