Daily Morning Note – 12 November 2021


Asian stocks looked set to climb Friday, bolstered by improving sentiment toward Chinese shares. Treasury futures suggested higher yields when cash trading resumes after a holiday. Australian shares rose, while equity contracts for Japan and Hong Kong advanced. A gauge of U.S.-listed Chinese stocks jumped more than 5%, helped by Alibaba Group Holding Ltd.’s blowout Singles’ Day shopping festival and a report that Didi Global Inc. is getting ready to relaunch its apps. S&P 500 futures were in the green after the index snapped a two-day drop.

Futures prices fell across the maturity spectrum in Treasuries. That points to another tough session ahead after Wednesday’s bond rout, when the fastest U.S. inflation in three decades raised the odds of quicker monetary tightening. The dollar extended a rally in the wake of the inflation print and caution triggered by a U.S. warning that Russia may be weighing a potential invasion of Ukraine. Oil slipped, while gold and Bitcoin held gains.



Flag carrier SIA has reported a smaller net loss of S$427.6 million for the second quarter to September, as passenger traffic rose amid Singapore’s launch of vaccinated travel lanes (VTLs). Its cash burn rate also has narrowed to S$18 million per month or S$106 million in the first half of FY 2022 as operating performance improved, down from S$1.7 billion in H1 FY2021.

ComfortDelGro registered a third quarter profit after tax and minority interests (PATMI) of S$25.8 million, up 19.4 per cent year-on-year. Revenue was 7.4 per cent higher at S$880.3 million, lifted by higher revenue from public transport services and automotive engineering services. Revenue for its public transport services rose 10.3 per cent to S$710.6 million due in part to higher revenue in Singapore. In Australia, public transport schedules were stable while the United Kingdom continued to see full schedules for public transport services.

Sembcorp Marine on Thursday (Nov 11) posted an order book of over S$1.42 billion as at the end of the third quarter. This includes S$180 million of ongoing repairs and upgrades for delivery by 2022, according to an interim business update.

Frencken Group‘s earnings rose 10.7 per cent year-on-year to S$14.77 million in Q3 as it registered higher revenue. Revenue increased 18.7 per cent year-on-year to S$196.46 million, boosted by stronger sales of its semiconductor analytical, medical and automotive segments. Gross profit increased nearly 15 per cent to S$33.5 million even as gross profit margin eased by half a percentage point to 17.1 per cent owing to higher material and freight costs.

Frasers Logistics and Commercial Trust’s (FLCT) distribution per unit (DPU) rose by 6.3 per cent to 3.88 Singapore cents for its second half ended Sep 30, from 3.65 cents a year ago. Gross revenue was up 11.4 per cent to S$237.6 million for the half-year period, from S$213.3 million a year ago. This was mainly attributable to acquisitions undertaken in FY2020 and FY2021, although it was partially offset by divestment activities during the same period, the manager said in a bourse filing on Thursday (Nov 11).

SBS Transit‘s third quarter profit-after-tax (PAT) shrank around 28 per cent year-on-year to S$13.86 million, it said in a filing to the Singapore Exchange on Thursday (Nov 11). SBST warned that the current restrictions, which have been extended to Nov 21, will result in a slow recovery for rail ridership.

Mainboard-listed Halcyon Agri Corporation saw earnings before interest, tax, depreciation and amortisation (Ebitda) fall 21.8 per cent to US$9.7 million for the third quarter ended Sep 30, 2021, from US$12.4 million a year ago. However, revenue in the same period rose 51.9 per cent to US$602.1 million from S$396.4 million a year ago. The natural rubber supplier attributed this to robust downstream demand, with sales volume in Q3 FY2021 growing by 11.6 per cent. Higher average selling prices also buoyed revenue for the quarter.

Best World International posted a 11.1 per cent year-on-year drop in net profit to S$25.1 million in the third quarter ended Sept 30, 2021. The group highlighted that it is already seeing the effects of second waves of the pandemic in its key markets, Taiwan and Malaysia. It warned that it expects continued disruptions – in the form of scaled down or cancelled marketing events and activities – in another key market, China, for the rest of the year.

Catalist-listed Old Chang Kee posted a net profit decline of 45.1 per cent to S$3.4 million for the first half of its financial year ended Sep 30, 2021 from S$6.1 million a year earlier. The group saw its profit margin decrease by 1.7 per cent to 64.3 per cent in H1 FY2022 due mainly to an absence of economies of scale savings from the large-scale catering of packed meals for foreign workers living in dormitories.


Tesla Inc chief executive officer Elon Musk unloaded US$5 billion of stock in the electric-car maker, shortly after holding a poll on Twitter over whether he should sell 10 per cent of his massive stake in the company. The world’s richest person so far has disposed of more than 4.5 million shares this week, according to regulatory filings. Those were his first sales in more than 5 years.

Goldman Sachs Group‘s asset management arm is starting 3 actively managed exchange-traded funds (ETFS) that aim to profit from companies that will disrupt industries. The Goldman Sachs Future Consumer Equity ETF will look to invest in companies that can appeal to younger consumers. The Goldman Sachs Future Health Care Equity ETF will look for healthcare companies that are developing new treatments or technologies in areas such as genomics, precision medicine, technology-enabled procedures, and digital healthcare. The Goldman Sachs Future Real Estate and Infrastructure Equity ETF will focus on companies that can profit from changes like demographic shifts that might make some real estate and infrastructure more profitable.

Boeing has reached an agreement with the families of victims of the 737 MAX crash that killed 157 people in Ethiopia, and has admitted responsibility for the crash, according to legal documents filed in a Chicago court on Wednesday. “Boeing is committed to ensuring that all families who lost loved ones in the accidents are fully and fairly compensated for their loss,” the company said in a statement passed to AFP.

Sony Group Corp has reduced its PlayStation 5 production outlook for this fiscal year due to component and logistics constraints, Bloomberg News reported on Wednesday. The company has cut down the number of PS5 units assembled for the fiscal year to about 15 million, from its previous target of 16 million units, the report added, citing people familiar with its operations.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR

Technical Pulse: China Merchant Bank Co Ltd

Recommended: BUY; Analyst: Chua Wei Ren

China Merchant Bank (HKEX: 3968) has been on a corrective downtrend since it met our first target price at HK$70.32 based on our report dated 6th May 2021. Technicals also indicate that China Merchant Bank will have a bullish rebound.

Buy spot: 64.95 Stop loss: 58.50 Take profit 1: 72.20 Take profit: 79.00

Technical Pulse: Geely Automobile Holdings Ltd

Recommended: BUY; Analyst: Chua Wei Ren

Geely Automobile (HKEX: 175) trading range is likely to persist longer.Recent technicals indicate our previous report dated 30th July is still valid after fresh signals emerge that a new upside will start once prices breach the HK$27.40 resistance level.

Buy spot: 28.85 Stop loss: 22.50 Take profit 1: 30.80 Take profit: 35.50

POEMS Podcast: Let the Money Talk

Recent Podcasts:

Sheng Siong Group 3Q21 Results – SGX Company Insights Ep 41

Apple Inc 4Q21 Results – US Company Insights Ep 40

Amazon.com Inc 3Q21 Results – US Company Insights Ep 39

Visit www.stocksbnb.com to learn more!

Join our Phillip Securities Research Telegram channel for the latest update on our stock coverage!

Click here to join: https://t.me/stocksbnb

Webinar Of The Week

Weekly Market Outlook: Apple, Netflix, Facebook, Keppel DC, Fraser, IFAST, Japfa, SPH, Sheng Siong.

Date: 01 November 2021

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information

The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided 揳s is?without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com