Daily Morning Note – 22 June 2020

PHILLIP SUMMARY

U.S. futures retreated and Asian stocks looked set to decline as investors mulled further signs of coronavirus outbreaks in countries from the U.S. to Australia. S&P 500 contracts fell in early Asia trading and those in Japan and Hong Kong pointed lower. California reported record new cases and Florida infections jumped more than the weekly average. The Australian dollar was weaker as one state extended its state of emergency due to fresh cases. The kiwi fell.

BREAKING NEWS

Eagle Hospitality Trust (EHT) announced more defaults and legal proceedings on Sunday night, and updated that the total liabilities incurred by the master lessees in respect of its properties are US$50.7 million. The figure was US$44.6 million when disclosed in a May 15, 2020 announcement, and included the amounts being claimed as announced in this SGX filing.

OCBC Bank says it is aiming to expand its sustainable finance portfolio to S$25 billion by 2025, riding growth momentum that is expected to continue over the next few years despite Covid-19. The bank recently said that its sustainable finance portfolio has surpassed S$10 billion in size, a goal that it was targeting to achieve by 2022.

DBS has been named the inaugural winner of the Digital Transformation Award in the Hackett Group’s Digital Awards 2020, marking the first time a Singapore company has been recognised in the Hackett Group’s awards. The bank was also a finalist in the Automation – Artificial Intelligence category, for its Joy Corporate Banking Chat Bot.

As a primary supplier in Asia for AMAT, UMS and has renewed its integrated system business contract for another three years. It is common for smaller contractors down the semiconductor supply chain to get squeezed by the big boys, but Singapore-listed UMS has consistently operated more profitably than most, posting an enviable net margin of 30.7 per cent in the March quarter.

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

TECHNICAL PULSE

Microsoft Corp Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Microsoft Corp (US: MSFT) bullish rally has performed better than our expected target price based on our report on the 9th June. The technicals that Microsoft is entering into a correction despite a rebound on 15th June.

Alibaba Group Holdings Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Alibaba Group (US: BABA) has entered into a 3-3-5 regular flat corrective formation and based on the technicals, the stock will be entering into a series of bearish 5-sub waves.

>> Read more technical reports

RESEARCH REPORTS

Yoma Strategic Holdings Ltd. – Structural growth at a cheap price
Recommendation: BUY (Initiation), Last Done: S$0.245

Target Price: S$0.460 , Analyst: Tan Jie Hui

– Entrenched foothold in Myanmar’s most attractive and fast-growing consumer segments, namely mobile finance, property, F&B and motor vehicles.

– Large property land bank worth 10-15 years of sales. Financial services poised for stellar growth on the back of a 5x YoY spike in revenue for Wave Money. F&B growth underpinned by at least 60% growth in KFC stores over the next three years.

– Initiate coverage with BUY rating and a target price of S$0.46. We view current valuations as depressed given structural growth opportunities ahead.

>> Read more research reports

HK Reports – Read up on our Hong Kong reports here

RESEARCH VIDEOS

Webinar Of The Week

Market Outlook: (PSR) Dasin Retail Trust, Penguin International Limited, SingTel, SG Banking Monthly, SG Weekly, SGD Perpetual Bonds, Technicals

Date: 08 June 2020

For more on Market Outlook

Phillip Research in 3 minutes: #22- Singapore Banking Sector

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





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