Singapore

• Strong recovery in 1H2024 profit growth YoY was driven by margin improvements in the food and convenience segments.
• Double-Digit sales growth in the Ready-to-Eat (RTE) foods segment boosted margins, offsetting reduced cigarette volumes from last year’s tax increases in Hong Kong.
• While weak consumer confidence in North Asia impacted sales, good growth in the expanding Southeast Asia business provided a positive offset.

• More than 60 of Singapore’s 300 most traded stocks this year added to their 1H24 gains in July.
• Multi-Chem, SATS, Singtel, Civmec, Kim Heng, Accrelist, Great Eastern, Dyna-Mac, Venture, Azeus and Hock Lian Seng saw the most acceleration in net institutional inflow in July compared to 1H24 inflow, while averaging 12% price gains for the month.
• The 63 stocks among the 300 most traded stocks this year that built upon their first-half gains in July are tabled below.

• Paul Whiley, COO and Executive Director of oil and gas offshore and subsea services firm Mermaid Maritime, shares how it is moving into decommissioning and other sunrise specialities to thrive in the long term.
• Even as the world shifts towards renewable energy, there will be many opportunities in the oil and gas industry in the coming decades, says Mermaid Maritime’s Chief Operating Officer and Executive Director Paul Whiley.
• Mermaid is a leading international subsea and offshore drilling services company for major oil and gas companies or their contractors, with its corporate headquarters based in Thailand.

• Back on the 18th, the Sirivadhanabhakdi family-backed Thai Beverage (THBEV SP) announced it would swap its 28.78% stake in Frasers Property Ltd (FPL SP) with THBEV-affiliate TCC Assets.
• Under the agreement, TCC will transfer a 41.3% stake in food and beverage play Fraser And Neave (FNN SP) to THBEV, lifting THBEV’s holding to 69.61% from 28.31% currently.
• The share swap triggers no Offers for either F&N or FPL. THBEV says it has no plans to privatise F&N  … at the moment.

• With almost full certainty that the Federal Reserve will cut interest rates this September (based on CME Fed Watch Tool showing a 100 per cent probability as of Jul 26, 2024), interest rates continue to remain in the spotlight for REITs.
• The Monetary Authority of Singapore (MAS) announced last week a proposal to simplify the leverage requirements for all Singapore REITs (S-REITs) – it proposes for a single aggregate leverage limit of 50 per cent and a minimum interest coverage ratio (ICR) of 5 times to be applied for all S-REITs.
• Five S-REITs that maintain the lowest gearing ratios are Sasseur REIT (25.2 per cent), Paragon REIT (29.9 per cent), Far East Hospitality Trust (31.5 per cent), AIMS APAC REIT (32.6 per cent), and Frasers Logistics & Commercial Trust (32.7 per cent).

• Sheng Siong (SSG SP) reported steady revenues/profits in Q2 2024, up 1.2%/4.7% YoY. In H1 2024, revenues/profits were up 3.4%/6.8% YoY due to same-store sales growth of 6.4%.
• The company expanded its footprint by two stores to 71 in H1 FY24 in Singapore. Two additional stores will open in July 2024, followed by ten tender results in H2. 
• The stock trades at a 16.3x PE, has a 4.3% dividend yield, and holds 16% of the market cap in net cash. Opportunities for higher growth are on the horizon.  

At the AGM management discussed the outcome of Singapore Post’s strategic review and the recently announced strategic review into value creation options relating to the Australian logistics business. In our view, expansion in the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce. We continue to believe there is more than 60% upside in the share price.

• Yeo Hiap Seng(YHS SP) , known for its Yeo’s brand of Asian/health drinks, trades near its 52-week low at SGD 0.55, despite having financial assets and cash worth SGD 0.44/share.
• With limited guidance on reinvestment/growth opportunities and management’s stance against returning cash to shareholders, the stock trades around dividend yield, now at 3.6%.
• Over the past decade, the stock has lost 75% of its value, and management must take decisive actions to enhance long-term shareholder value.

• ESG Brew with ComfortDelGro’s Group Chief Sustainability and Risk Officer: ‘Our transition to cleaner energy vehicles will be a game-changer’ Land transport operator ComfortDelGro is switching its fleet of over 40,000 vehicles in 12 countries to cleaner energy ones as part of its sustainability drive.
• Jong explains: “We operate in 12 countries with a total fleet of over 40,000 vehicles spanning taxis, buses, trains and more.

• Thai Beverage will offload its entire stake in Frasers Property Ltd to TCC Assets in a share swap for an increased share in Fraser And Neave streamlining its business focus.
• The share swap values Fraser And Neave on a par with peers which is at a significant premium to the share price but Fraser And Neave was excessively undervalued.
• Thai Beverage deserves to trade on a higher multiple given its pure-play status and a succession of recent restructurings including Serm Suk and Oishi Holdings. 

• Share buybacks by primary-listed companies The five sessions also saw nine primary-listed companies conducted buybacks with a total consideration of S$4.5 million.
• With this transaction, the total proportion of shares bought back under the current mandate now stands at 1.47 per cent of the issued shares (not counting treasury shares) as of the date when the share buyback resolution was passed.

• Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
• Thai Beverage (THBEV SP)‘s proposed swap deal with promoter company raises several questions for shareholders. Start with the back story about how Fraser And Neave (FNN SP) joined the group.
• Bigger weddings could become a trend in India – Read why we like Kalyan Jewellers(KALYANKJ IN) . Also, household debt in Thailand as % of GDP is highest in ASEAN.

• Thai Beverage(THBEVSP)‘s  proposed swap deal involves acquiring a 41.3% stake in F&N from promoters, seemingly at book value than fair market value, expected in case of an arms length transaction.
• Fraser And Neave (FNN SP)  holds a 20.3% stake in Vietnam Dairy(VNM VN), Vietnam’s leading dairy player, which is now trading at nearly a 40% discount to the investment value.
• Understanding TCC Assets’ ownership history of F&N may help clarify the deal’s valuation rationale.

• This is a follow-up research note on MoneyHero Group, a leading personal finance aggregation and comparison entity in Greater Southeast Asia.
• In its most recent Q1 2024 result, the company continues to demonstrate exceptional growth and strategic agility.
• MoneyHero Group has seen a significant uptick in revenues and improved margins and was also in the news for an important strategic sale of CompareHero in Malaysia that could prove to be another game changer.

• Thai Beverage(THBEV SP)  has proposed a share swap-deal with a promoter company to acquire additional stake in FraserAnd Neave(FNN SP)  in exchange for Frasers Property at negotiated valuations, not market prices.
• Post-Completion of the swap deal with the promoter-owned entity, which requires shareholder approval, Thai Bev will hold a 69.6% stake in F&N and no stake in Fraser Property (FPL).
• If the stake swap were valued at yesterday’s closing share prices, it would imply a drop in the total stake value for Thai Bev after the proposed deal.

• The top five performers among the 100 most traded stocks in Singapore for the year up to 17 July, were Beng Kuang Marine, Mermaid Maritime, Yoma Strategic, Yangzijiang Shipbuilding and Samudera Shipping.
• Among the broader group of Singapore’s 200 most traded stocks this year, 63 stocks have generated YTD total returns of 10% or higher.
• Among the 63 stocks, the Industrials Sector representing as many as 18 (29%) of the 63 stocks, compared to the sector representing 38 (19%) of the broader group of the 200 most traded stocks.