In today’s briefing:
- Amara Holdings (AMA SP): Albert Teo Family/Dymon Asia’s Unconditional S$0.60 Offer
- Sea Ltd: A Detour Back to the Land of Losses
- Singapore Airlines: Supply Dislocations Will Underpin Strong Profits for Much Longer
- Grab Holdings (GRAB US) – Steering and Batching Towards Profitability
- Amara (AMA SP): Teo Family’s Lifetime High Offer
- 10 in 10 with CDL Hospitality Trusts – Taking a Long-Term View on Singapore
Amara Holdings (AMA SP): Albert Teo Family/Dymon Asia’s Unconditional S$0.60 Offer
- Amara Holdings (AMA SP) has disclosed a voluntary unconditional offer from Dymon Asia and the Albert Teo Family at S$0.60 per share, a 30.4% premium to the last close price.
- On 17 June, Amara received a written notification from Mr Albert Teo Hock Chuan (CEO) and Ms Susan Teo Geok Tin (Company Secretary) that they are mulling an offer.
- The offer price is final. The offer is attractive and marginally below the ten-year high. Hitting the 90% compulsory acquisition threshold implies a minority acceptance rate of 79.3%.
Sea Ltd: A Detour Back to the Land of Losses
- Looks like Sea (SE US) decided to take a detour back to the land of losses this quarter.
- But it’s not a massive issue. They’ve maintained close to 7% QoQ revenue growth, so things should be okay.
- Investors likely won’t delve into the details further to uncover the substantial costs hidden behind that apparent growth.
Singapore Airlines: Supply Dislocations Will Underpin Strong Profits for Much Longer
- Dearth of international flights from Chinese and Russian carriers — 2nd & 3rd biggest global aviation market, will distort supply, underpins strong yields and profitability.
- SIA’s cost management is superior thanks to high asset utilisation, stable SGD vs. the USD, and access to attractive financing. SIA’s competitors severely lack these attributes.
- We forecast FY24 net profit of SGD2.4b (+13.1% YoY) and peg it to 10x PE to derive a TP of SGD8.07, +30% UPSIDE potential.
Grab Holdings (GRAB US) – Steering and Batching Towards Profitability
- Grab‘s 3Q2023 results demonstrate a high degree of success in achieving a delicate balance between growth and profitability, with significant progress across all verticals, and a broadening of product offerings.
- The company turned adjusted EBITDA breakeven for the first time in 3Q2023, through lower incentives, cost efficiencies, and lower regional corporate costs, with further progress towards FCF breakeven in 4Q2023.
- Grab remains confident about the outlook with guidance revised upwards, with the company looking at some potentially interesting M&A, which should be earnings accretive and beneficial to the ecosystem.
Amara (AMA SP): Teo Family’s Lifetime High Offer
- Back in mid-June, hotel and investment property play Amara Holdings (AMA SP) gained 38% over three consecutive days on news of a possible Offer from its controlling shareholders.
- The Teo family controls ~51% of shares out. No price was mentioned. This development was discussed in Amara Holdings Gains On Possible Offer.
- After shares were halted on the 10th November, Amara has now announced a best-and-final unconditional cash Offer at S$0.60/share, a chunky 53.8% to undisturbed and a lifetime high.
10 in 10 with CDL Hospitality Trusts – Taking a Long-Term View on Singapore
10 in 10 with CDL Hospitality Trusts – Taking a Long-Term View on Singapore
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