In today’s briefing:
- Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience
- Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par
- High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside
- New Horizon Health 1H23: Management Call Takeaway
- Union Gas Holdings’ Teo Hark Piang ups stake to 8.05%
- [JD Logistics (2618 HK, SELL, TP HK$9.4) TP Change]: Premium Parcel Delivery Is Increasingly Crowded
- REIT Watch – 10 S-Reits which outperformed in H1
- A Spoonful of Reality
Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience
- Sumber Alfaria Trijaya (AMRT IJ) booked some strong SSSG for June bringing its YTD number into line with its FY2023 projections after post Lebaran adjustment in May.
- The company will embark on a more aggressive store rollout for this year with plans for 2,100 new stores, including 200 Alfamidi stores and 500 Lawson convenience stores.
- Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) continues to grow its membership program under AlfaGift with 16.3m members, which helps to gather valuable data and grow sales. Valuations are attractive.
Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par
- TSMC: 9.9% premium, continues to stay above one standard deviation from historical median… Earnings coming this week.
- UMC: 0.0% ADR premium… Trading on par with local shares… Earnings next week.
- Chunghwa Telecom: -0.8% discount represents relatively deep discount vs. history.
High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside
- Shift reported 3QFY08/2023 results on Friday and the company’s revenues increased 34.2% YoY and OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
- Conclusion of unprofitable projects and expansion into upstream services have helped earnings to expand, and we expect full-year earnings to comfortably beat guidance and consensus estimates.
- Shift’s share price moved up by 19% following earnings announcement and has been up more than 39% YTD, and we would recommend holding on as there is further upside.
New Horizon Health 1H23: Management Call Takeaway
- New Horizon Health reported a solid set of preliminary results for 1H2023
- We speak to the company’s management post result announcement to figure out the key drivers and summarize the key points in this note.
- The company upgraded its full year guidance and is on track to meet its long term target.
Union Gas Holdings’ Teo Hark Piang ups stake to 8.05%
- Union Gas Holdings’ Teo Hark Piang ups stake to 8.05% Seatrium, Wilmar International, Singapore Airlines (SIA), UOL Group and DBS Group led the net institutional inflow for the five sessions.
- With over 40 years of operating track record, Union Gas Holdings’ three key businesses comprise liquefied petroleum gas (LPG), natural gas, and diesel.
[JD Logistics (2618 HK, SELL, TP HK$9.4) TP Change]: Premium Parcel Delivery Is Increasingly Crowded
- We expect JDL to report C2Q23 revenue and non-IFRS net profit margin (1.5%) and 0.4ppts vs. consensus. We expect 2Q revenue (excl. Deppon) to grow 5%~ YoY .
- JDL is facing increasing competition from (1) the recent launch of Cainiao’s high-end delivery service, (2) improved ZTO service, and (2) Douyin’s actions to increasingly in-source logistics.
- We maintain JDL’s SELL rating but raise its TP to HK$ 9.4, as we expect JDL will lower staffing costs, and by reducing staff redundancy.
REIT Watch – 10 S-Reits which outperformed in H1
- SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index generating 2.1 per cent in total returns in the first half of 2023, outperforming the Straits Times Index’s 1.2 per cent and the FTSE EPRA Nareit Asia ex Japan Index’s -1.7 per cent.
- The 10 S-Reits were Keppel DC Reit, Cromwell European Reit (Cromwell E-Reit), Frasers Logistics & Commercial Trust, Frasers Hospitality Trust, Paragon Reit, Frasers Centrepoint Trust, Aims Apac Reit, ParkwayLife Reit, CapitaLand India Trust, and CapitaLand Ascott Trust.
- Outperformance was driven across specialised, healthcare and hospitality sub-sectors at 7.5 per cent, 5.2 per cent, and 4.1 per cent total returns respectively.
A Spoonful of Reality
- Whole Earth Brands, a sustainable sweetener firm, has seen a slowdown in growth, tightening margins, and rising debt since going public.
- Despite the odds, the company is countering these challenges with a strategy that includes cost reduction, improved distribution, and portfolio expansion.
- A recent buyout proposal from the company’s largest shareholder has added a new dimension to the company’s future.
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