DAILY MORNING NOTE | 2 March 2023

Trade of the Day

CapitaLand China Trust (SGX: AU8U)

Analyst: Zane Aw

(Current Price: S$1.16) – TECHNICAL BUY

Buy price: S$1.16 Stop loss: S$1.11 Take profit 1: S$1.24
Take profit 2: S$1.29

Singapore shares ended lower on Wednesday (Mar 1), tracking overnight losses on Wall Street amid rising concerns of persistent inflation. The Singapore market fell 0.2 per cent or 7.55 points to close at 3,255.08. Gainers outnumbered losers 323 to 236, after 4.5 billion securities worth S$1.4 billion changed hands.

Wall Street’s main indexes opened lower on Wednesday (Mar 1) as Treasury yields rose on bets of more rate hikes by the Federal Reserve that offset optimism from strong China manufacturing data. The Dow Jones Industrial Average fell 0.33 points, or 0.00 per cent, at the open to 32,656.37. The S&P 500 opened lower by 6.81 points, or 0.17 per cent, at 3,963.34, while the Nasdaq Composite dropped 7.96 points, or 0.07 per cent, to 11,447.58 at the opening bell.

Top gainers & losers

Factsheets



EVENTS THIS WEEK

Factsheets


SG

Agribusiness giant Japfa on Wednesday (Mar 1) posted a net loss of US$35.9 million for the second half of 2022, a reversal from net profit of US$0.3 million in the corresponding period for 2021. Earnings for the full year came in at US$8.2 million, down from US$118.8 million in 2021. The group said its margins were impacted by high raw material costs combined with limited increases in average selling prices (ASPs) across all the businesses in its PT Japfa Tbk and Animal Protein Other (APO) segments. Revenue for H2 was up 3 per cent to about US$2.2 billion from US$2.1 billion, while full year revenue rose 7 per cent to US$4.4 billion.

Property developer OUE Limited reported earnings of S$101.2 million for the second half of 2022, close to double that of its net profit of S$50.9 million in the corresponding prior-year period. The stronger bottomline showing was due chiefly to higher revenue, which rose to S$292.4 million from S$148.8 million. The board of directors has proposed a final cash dividend of S$0.015 per share, up from the final dividend of S$0.01 per share in 2021. The dividend, if approved by shareholders at the annual general meeting on Apr 25, will be paid out on May 31.

ValueMax Group on Wednesday (Mar 1) reported earnings of S$19.2 million for the second half of 2022 ended December, down 16.8 per cent from the net profit of S$23.1 million in the corresponding period in 2021. Revenue for the period was down 7.1 per cent at S$133.6 million from S$143.9 million. Topline contributions from the group’s retail and trading of jewellery and gold business declined by S$17.3 million during H2. This was, however, partially offset by higher revenue contributions from the company’s money lending business and interest income from pawnbroking business, which saw revenue rise by S$4 million and S$3 million respectively.

Interest rates on the latest issuance of Singapore Savings Bonds (SSBs), which opened on Wednesday (Mar 1), have risen again, following a series of declines in recent months. The April tranche of SSBs, which are backed by the Singapore government, is offering a first-year interest rate of 3.01 per cent, and a 10-year average return of 3.15 per cent. A month earlier, the March issuance opened with a first-year interest rate of 2.76 per cent, and a 10-year average return of 2.9 per cent. Coupon rates of SSBs rose alongside rising interest rates in 2022. They peaked during December 2022’s tranche, which offered a record high first-year interest rate of 3.26 per cent and an average 10-year return of 3.47 per cent.

OIL exploration and production company Rex International on Wednesday (Mar 1) posted a net loss of US$5.8 million for the second half of 2022, versus a net profit of US$43.2 million in the corresponding period in 2021. Revenue for the period from the sale of crude oil was down 14 per cent to US$70.8 million from US$82.7 million, The group has proposed a final dividend of S$0.005 per share, unchanged from the final dividend in 2021. Rex International is targeting to pay out the dividend in May, assuming shareholders approve the dividend payout at the company’s upcoming annual general meeting that will be convened on or before Apr 30.

US

PropertyGuru reported an 80.7 per cent drop in losses for Q4 FY2022 to S$5.2 million from S$27.2 million in Q4 FY2021. Q4 FY2022 revenue grew 16.8 per cent to S$40.1 million from S$34.3 million a year prior. For FY2022, the property listings portal reported a 31.1 per cent year-on-year drop in losses from S$187.4 million to S$129.2 million, as FY2022 revenue grew 35 per cent to S$135.9 million from S$100.7 million in FY2021. Marketplaces continue to be the main revenue driver for PropertyGuru, with Singapore being the top revenue contributor. The Singapore marketplace grew 24 per cent from S$55.9 million in FY2021 to S$69.2 million in FY2022. The growth was driven by the increase in average revenue per agent (ARPA) and an increase in overall agents.

Salesforce shares soared 16% in extended trading on Wednesday after the cloud software maker beat Wall Street estimates on profit and issued a better-than-expected forecast. Salesforce’s revenue grew 14% year over year in the fiscal fourth quarter, which ended on Jan. 31, consistent with the previous quarter, according to a statement. The company reported a loss of $98 million, compared with a loss of $28 million in the year-ago quarter. The adjusted operating margin, at 29.2%, was the highest in the company’s history and wider than the 25% goal for the fiscal 2026 fiscal year that executives had laid out at its investor day in September.

Oil prices settled up slightly on Wednesday as signs of ample supply, including growing US crude inventories, offset growing hopes for higher demand after a jump in manufacturing in top crude importer China. Brent crude futures settled up 86 cents, or 1 per cent, to US$84.31 a barrel. US West Texas Intermediate crude (WTI) settled up 64 cents, or 0.8 per cent, to US$77.69. US crude inventories rose by 1.2 million barrels last week to 480.2 million barrels last week to the highest since May 2021, government data showed, beating analyst expectations of a 457,000-barrel rise. It was the 10th straight weekly increase.

Gold prices edged lower on Wednesday (Mar 1) as the dollar ticked up, while investors braced for more US interest rate hikes amid stubbornly high inflation. Spot gold was down 0.2 per cent at US$1,824.06 per ounce, as of 0047 GMT. US gold futures fell 0.3 per cent to US$1,831.30. The dollar index rose 0.1 per cent, making bullion more expensive for buyers holding other currencies.

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


RESEARCH REPORTS

PSR Stocks Coverage

Factsheets


Factsheets


For more information, please visit:

https://www.stocksbnb.com/singapore-stocks-coverage/


Upcoming Webinars

Guest Presentation by Enviro-Hub Holdings Ltd [NEW]

Date: 14 March 2023

Time: 12pm – 1pm

Register: https://bit.ly/3KBprpA


Guest Presentation by Luminor Financial Holdings Ltd [NEW]

Date: 15 March 2023

Time: 12pm – 1pm

Register: https://bit.ly/3kj6LjP


Guest Presentation by Meta Health Limited [NEW]

Date: 16 March 2023

Time: 3pm – 4pm

Register: https://bit.ly/41oikGX


Guest Presentation by Keppel Pacific Oak US REIT (KORE) [NEW]

Date: 23 March 2023

Time: 12pm – 1pm

Register: https://bit.ly/3XY2n7v


POEMS Podcast:

Research Videos

Weekly Market Outlook: UOB, OCBC, CLI, SATS, ComfortDelGro, HRnetGroup, Venture Corp, Tech Analysis
Date: 27 February 2023
Click here for more on Market Outlook.
Sign up for our webinars here, and be among the first to receive economy and market updates.

PHILLIP RESEARCH IN 3 MINS

Phillip Research in 3 minutes: #29 Keppel Corporation; Initiation
Click here for more on Phillip in 3 mins.

Follow our Socials

Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon Linkedin Social Icon TikTok Social Icon Spotify Social Icon

Join our Singapore Equity Research Community on POEMS Mobile 3 App for the latest research reports, market updates, insights and more

Click to join!

Disclaimer

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

IMPORTANT INFORMATION

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