Daily Brief Singapore: Grab, Halcyon Agri, Q & M Dental Group (Singapore) and more

In today’s briefing:

Grab(GRAB.US) 4Q22 Preview: Tailwinds from Share Gain and Rebound in Mobility
Halcyon Agri (HACL SP): Conditions Precedent Fulfilled, MGO at S$0.413
Q&M Dental Group (QNM SP): Core HealthCare Business Exhibits Secular Uptrend; Expansion to Continue

Grab(GRAB.US) 4Q22 Preview: Tailwinds from Share Gain and Rebound in Mobility

In C4Q22, We expect Grab to report total revenue 2% higher than cons., and non-IFRS net loss narrower than cons..
With competitors cutting back on heavy incentives, Grab has gained share under easing competitive environment in food delivery market in 2022. We expect this trend to sustain in 2023.
Mobility is expected to benefit from rebound of tourism and generate stable margin. Pullbacks from off-platform financial services continue to support improvement. Maintain BUY and raise TP to US$ 4.0.

The conditions precedent for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is fulfilled.
This will trigger an MGO at US$0.315 or S$0.413. On the assumption that the offer document is despatched by 17 February, the earliest close of the offer is 17 March.
The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities’ acceptance rate. We think that this is achievable as the offer is attractive.

Q & M Dental Group (Singapore) (QNM SP) is the largest listed pure dental play in Southeast Asia. For the 9M2022, core healthcare revenue increased 3% to S$125.9M.
Comparison of the numbers over five quarters to mitigate any impact of changes in the economic and business environment shows core healthcare revenue exhibits a secular uptrend.
During 9M2022, Q&M added seven and four dental clinics in Singapore and Malaysia, respectively, bringing the company’s total number of clinics to 106 in Singapore and 45 in Malaysia.

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