Singapore

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

• Technology firm Trek 2000 has grown through innovation.
• If you have ever used the ubiquitous thumb drive or transferred your holiday photographs wirelessly from your camera, it’s the innovation of Singaporean technology firm Trek 2000 International Ltd. (Trek2000) that made it possible.
• Tan emphasises that concentrating on these three P’s is how Trek 2000 will distinguish itself in the increasingly crowded renewable energy market.

• Grab Holdings booked record GMV, revenue, FCF, MTUs, and EBITDA in 2Q2024 and flagged an optimistic outlook for 2H2024, with positive adjusted FCF expected to remain positive for FY2024.  
• The company continues to focus on its product-led and technology-driven initiatives to drive growth and profitability through mass-market and high-value products such as Grab Unlimited, advance bookings, and group bookings.
• Concerns over competition from TikTok look overblown, with Grab already active on social media. Management expects positive sequential growth for the next 2Qs and a stronger growth outlook in FY2025,

• Institutions were net buyers of Singapore stocks over the four trading sessions spanning Thursday August 8 through to Wednesday, August 14 close, with S$31.5 million of net institutional inflow.
• Leading the net institutional inflow over the four sessions were Singapore Exchange, Singapore Telecommunications, Yangzijiang Shipbuilding (Holdings), Jardine Cycle & Carriage, CapitaLand Ascendas REIT, Sembcorp Industries, Keppel DC REIT, Sheng Siong Group, ComfortDelGro Corporation, and CapitaLand Integrated Commercial Trust.
• On August 12, IFS Capital Executive Director & Group CEO Randy Sim Cheng Leong acquired 1.1 million shares at an average price of S$0.11 per share.

• SGX FX has added Mitsubishi UFJ Financial Group, Inc. (MUFG), one of the world’s foremost financial institutions, to its eFX trading solutions platform for global buyside institutions as a liquidity provider.
• Kenneth Ho, Global Head of eFX Sales at MUFG, said, “The partnership with SGX FX aligns with MUFG’s strategy of digitalisation and expanding our footprint in the financial institutional space.
• About Mitsubishi UFJ Financial Group (MUFG) Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups.

• Listed on the 18th March 2022 at US$8.33/share, Singaporean-based online real estate portal PropertyGuru (PGRU US) has now announced a US$6.70/share cash Offer from Sweden’s EQT AB.
• That backs out a premium to undisturbed of 52%. Media speculation of a takeover for the TPG/KKR-backed PropertyGuru first surfaced around the 21st May this year. 
• TPG and KKR, collectively holding ~56.1%, are supportive. REA Group Ltd (REA AU), holding 17.2%, is also on board. The key Offer condition is two-thirds of shareholders approving terms.

• PropertyGuru (PGRU US) entered into a definitive merger agreement with EQT (EQT SS) at US$6.70 per share, a 51.9% premium to the undisturbed price of US$4.41 (21 May).
• The shareholder vote is done (two-thirds voting threshold) due to TPG Inc (TPG US)/KKR & Co (KKR US)’s support and drag-along rights relating to REA Group Ltd (REA AU)’s shares.  
• This is a clean deal as there is no dissenting condition or requirement for country antitrust approvals. At the last close and for end-of-year payment, the gross/annualised spread is 2.3%/6.4%.

• Sea Ltd‘s 2Q2024 results reflected both the success of its bold strategies to drive growth in areas such as live-streaming whilst at the same time increasing take rates and profitability.
• Its core focus on competitive pricing, content, logistics, and especially advertising will help to drive growth, retention, and profitability as unit economics improve, whilst it rolls out its lending products.
• Competitive intensity has stabilised which should allow for take rates to rise higher, whilst Shopee is well positioned to further increase its lead. Valuations look reasonable given Sea Ltd’s profitable status.

Yanlord Land’s H1/24 results were acceptable in our view. The company reported robust top-line growth, albeit margins weakened amid the difficult operating environment. Positively, Yanlord continued to reduce debt and maintain stable leverage. In addition, the company has successfully refinanced its borrowings using cheaper onshore secured debt, which has helped to improve interest costs.

That said, Yanlord’s headroom to raise future secured debt has been reduced, as the bulk of its investment properties has already been pledged. Still, the company might be able to upsize its existing secured loans with higher LTV, or issue loans backed against new assets. Meanwhile, Yanlord continues to face sales pressure and a shrinking land bank in the absence of new land acquisitions.

• 1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. 
• Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. 
• Comfortdelgro Corp (CD SP) is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. 

• 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 released its 2Q2024 results that showed revenues that bested estimates as sales of its primary products showed robust growth, while adding another product to its mix.

• 10 in 10 with Fu Yu Corporation – Precision Engineering for a Sustainable Future 10 Questions for https://investors.sgx.com/_security-types/stocks/F13 Fu Yu Corp has a significant presence in precision plastic injection moulding.
• 10 in 10 with Fu Yu Corporation – Precision Engineering for a Sustainable Future A key cornerstone in Fu Yu’s transformation is your Smart Factory, which will improve manufacturing capabilities and operational efficiency.

• Singapore-based Aprisium, a provider of advanced contaminant detection and monitoring solutions, has secured US$7 million in an oversubscribed Series A financing round led by Deep-Tech Venture Partners and Cocoon Capital.
• Woh Hup and Solisa Peppercorn also participated.
• The new funding will fuel Aprisium’s expansion into key markets in Europe, the US, and Asia.

• Beep, an IoT company that provides interoperable charging networks for businesses and drivers in Singapore, has closed its US$3.3 million pre-Series A investment.
• The round was led by existing investors Granite Asia (formerly GGV Capital), Farquhar VC, SUTD Venture Holdings, and Wing Vasiksiri, with participation from M7 Ace Neo, an M7 Company.
• The startup will use the funds to accelerate its expansion in Thailand and Malaysi

• Singapore-based Evo Commerce, an omnichannel retailer offering supplements and personal care products directly to consumers, has raised US$2.1 million in a fresh investment round.
• Existing investor Shanghai-based IJK Capital Partners led the round.
• Chen Capital (Min-Liang Tan’s family office), Reuben Lai (former MD of the Grab Financial Group), Octave Wellbeing Economy Fund, Orvel Ventures, Straits Angels, and Ascend Angels participated.

• Singapore-based UnaBiz, a provider of customised IoT solutions, has announced the first close of its US$25 million pre-series C funding round with Japan’s KDDI Open Innovation Fund 3 and KYOCERA Communication Systems.
• The fresh funds will be used to partner with new companies in the security industry, deepen logistics and supply chain market penetration, and expand utility with hybridisation.
• This capital injection follows UnaBiz’s acquisition and integration of French IoT firm Sigfox 0G technology. In two years, UnaBiz added 4 million new devices to the global 0G Network.

• REIT Watch – S-Reits score lower in transparency overall but five see marked improvement In this year’s Singapore Governance and Transparency Index (SGTI) 2024 rankings, the overall scores for Singapore real estate investment trusts (S-Reits) and business trusts declined to 86.6 points from 89.3 last year.
• The five S-Reits with the greatest yoy improvement in overall scores: Frasers Centrepoint Trust (+21.9 points), Elite UK Reit (+16.7 points), CDLHT (+16.6 points), Keppel Reit (+10.4 points) and Prime US Reit (+9.8 points).

• Institutions were net sellers of Singapore stocks over the four trading sessions spanning August 2 through to August 7, with S$586 million of net institutional outflow.
• The four sessions also saw 12 primary-listed companies conduct buybacks with a total consideration of S$20.4 million.
• Digital Core REIT Management also acquired units of Digital Core REIT over each of the four sessions.

• A focus on innovation and adaptability has enabled Oiltek, a vegetable and edible oil process engineering company, to grow steadily, even amid global crises.
• When Henry Yong joined Malaysia-based Oiltek in 2008 as its managing director, his priority was to hone its innovation. “We have diversified into refinery processes and engineering solutions for a wide variety of edible oils, including palm, sunflower and soybean oil, non-edible oils, renewable energy, such as biogas, biodiesel and feedstock for sustainable aviation fuel, and animal feed.

For our next Corporate Webinar, we are glad to welcome MoneyHero Group’s CEO and Director, Mr Rohith Murthy and CFO, Mr Hao Qian.

In the upcoming webinar, Rohit and Hao will share a short company presentation after which, they will engage in a fireside chat with Smartkarma Insight Provider, Ishan Majumdar. The Corporate Webinar will include a live Q&A session.

This Corporate Webinar will be hosted on Tuesday, 13 August 2024, 15:00 SGT. 

About MoneyHero Group

MoneyHero Group connects people to a better financial future. The mission at MoneyHero Group is to make all of life’s financial decisions a time saving and rewarding experience. MoneyHero Group educates consumers about personal finance, helps them decide which products are best suited for their needs, and facilitates getting the product. They connect financial institutions with their target customers and help them achieve their customer acquisition objectives.

• US-10 year treasury yield and Singapore 10-year bond yield are closely correlated
• Singapore real estate stocks’ trading performance are therefore related to expectation of a US rate cut
• We expect SG RE stocks will show stable industry fundamentals in upcoming results.  We like our trade idea to Long CLAR SP and SHORT Keppel REIT among S-REITs

• Institutions were net sellers of Singapore stocks over the five trading sessions to Aug 1, with S$115 million of net institutional outflow, following the similar pace of S$95 million of net outflow for the preceding five sessions to Jul 26.
• The five sessions to Aug 1 also saw 11 primary-listed companies conduct buybacks with a total consideration of S$6.4 million.
• For context, in FY2023 and FY2022, the net profit attributable to shareholders came to S$8.3 million and $13.4 million, respectively.