Daily Morning Note – 22 June 2020
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.
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
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.
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.
HK Reports – Read up on our Hong Kong reports here
Webinar Of The Week
Date: 08 June 2020
|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.|
|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.|