Trade of the Day

Hiap Tong Corporation Ltd (SGX: 5PO)

Analyst: Zane Aw

(Current Price: S$0.141) – TECHNICAL BUY
Buy price: S$0.141 Stop loss: S$0.134 Take profit: S$0.170

Asian markets including Singapore mostly climbed on Thursday (Jul 27), hours after the Federal Reserve hiked its keenly-watched policy rate range by 25 basis points to between 5.25 per cent and 5.50 per cent. Singapore share rose 32.46 points or 1 per cent to 3,337.42.

WALL Street stocks tumbled on Thursday (Jul 27) on resurgent concerns about higher interest rates, snapping a 13-day winning streak for the Dow. The blue-chip index appeared poised to tie the all-time streak set in 1897. But after rising early in the day, equities headed lower in the afternoon as worries about more aggressive Federal Reserve actions took hold. The Dow Jones Industrial Average, which had tied a 13-day streak last seen in 1987, finished down 0.7 per cent at 35,282.72. The broad-based S&P 500 shed 0.6 per cent to 4,537.48, while the tech-rich Nasdaq Composite Index lost 0.6 per cent at 14,050.11.

Top gainers & losers





Singapore Airlines (SIA) reported 1Q24 net profit of S$734mn (+98.4% YoY) and EPS of 24.7 cents. 1Q24 revenue rose 14.0% YoY on the back of higher passenger volume (+33.5% YoY), which outpaced the decline in cargo volume (-11.3% YoY). Notably, yields are trending lower – passenger yield down 1.6% YoY to 12.1 cents/pkm and cargo down 44.3% to 44.6 cents/ltk. Passenger load factor gained 5.7 ppt to 88.1%, while cargo fell 13.7 ppt to 51.8%. SIA expects capacity at end FY24 to reach 90% of pre-pandemic level. Operating expenses rose by a smaller 10.5%, due to cheaper jet fuel (-21.8%) and fuel hedging gain of S$101mn (1Q23: S$202mn). The latter is not expected to recur as lower-priced hedges have matured and remaining hedge positions are at prices closer to prevailing market levels. We think this could be its best quarter in FY24. We expect a deceleration in yields for both passenger and cargo as other carriers add flight capacity while air travel demand ease. It could also face higher crew and manpower costs. After the partial redemption of MCBs, balance sheet is in net debt of S$0.9bn. NAV of S$5.78/share could further fall if the remaining MCB were to be redeemed. SIA trades at 1.3x book. Maintain our FY24 net profit estimate of S$1.74bn. REDUCE and TP of S$6.80.

Peggy Mak Bang Mui
Manager, Research

Keppel Corp Excluding discontinued operations, Keppel’s 1H23 net profit rose marginally by 2.5% to S$445mn. It booked a gain of S$3.3bn from the disposal of Keppel Offshore and Marine to Seatrium. It also announced a distribution-in-specie of 1 KReit unit for every 5 existing Keppel shares. Keppel’s stake will reduce by 9.4% to 37.1%. The distribution will result in S$135mn loss for Keppel, partly due to KReit’s market price being below the value in Keppel’s book.

Infrastructure is the key earnings driver. The segment doubled net profit to S$291mn, due to earnings from integrated power business, driven by higher net generation and contracted spreads. Real estate disappointed (-29%) due to weaker sales, lower fair value gains, and higher interest expense. Connectivity (M1 and data centre and network) grew net profit by 12% to S$37mn. Keppel’s focus is to embark on asset monetization to lighten its balance sheet and transform into an asset manager to generate recurring income. However, asset monetization slowed to S$415mn in 1H23. FUM growth also slowed. As at end June, FUM was S$53.2bn (Dec 22: S$50bn), though it keeps to its target of S$100bn by 2026 and S$200bn by 2030. Maintain BUY.

Peggy Mak Bang Mui
Manager, Research

CapitaLand Ascott Trust’s 1H23 gross profit rose 31% to S$154.4mn YoY on stronger performance and contribution from new properties. Portfolio RevPAU grew 20% YoY in 2Q23 to S$149 and is currently at 98% of pre-COVID 2Q19 RevPAU, mainly due to higher average daily rates which surpassed pre-COVID levels. Amongst CLAS’ key markets, Australia, Japan, Singapore, UK and USA performed above pre-COVID RevPAU levels in 2Q23, while China and Vietnam RevPAU strengthened to 78% and 83% of 2Q19 levels, respectively. As a result,1H23 Distribution per Stapled Security (DPS) rose 19% YoY to 2.78 Singapore cents. We expect further growth in RevPAU going forward as international flight capacities pick up pace – it has not fully recovered to 2019 levels. Annualised distribution yield is 5%.

Chan Run Xiong Darren
Research Analyst

Finnish oil refiner and biofuels producer Neste missed second-quarter operating earnings expectations on Thursday (Jul 27) and said expansion of its Singapore renewables plant was delayed by equipment repairs, sending its shares down 12 per cent. Renewable fuels are a cornerstone for the company, which said it expects to complete its Singapore plant expansion by the end of the year.

Cortina Holdings received about 100 queries from customers in relation to a cybersecurity attack it was subjected to in June. To strengthen its defences against hackers, the luxury watch dealer set up a hotline on Jun 7 to answer queries on the incident from customers via e-mail or telephone.

Digital Core Reit’s distribution per unit sank 6.8 per cent to US$0.0192 for its first half-year ended June, from US$0.0206 the year before, as a result of lower rental income. Two of its tenants filed for bankruptcy, which caused them to fall behind on rent payments. One of these customers has since vacated the data centre it was occupying in Toronto, Canada, and has been replaced by other tenants, the Reit manager said on Thursday (Jul 27) in a bourse filing.

THE manager of Starhill Global real estate investment trust has declared a distribution per unit of S$0.0198 for the second half of its current financial year (FY2022/2023), a 2 per cent drop from the DPU of S$0.0202 in the year-ago period. Distributable income fell 3.7 per cent to S$45.4 million for the reporting period ended Jun 30, driven by a lower net property income and higher net finance costs, said the manager in a bourse filing on Thursday (Jul 27). It also said that it would retain S$0.7 million of distributable income for H2 as working capital.

Sheng Siong on Thursday (Jul 27) reported a 3 per cent decrease in net profit to S$65.4 million for the first half of 2023, from S$67.4 million in the year-ago period. This comes as the group incurred higher operating expenses in the period, with staff costs increasing by S$6.1 million.


US regulators unveiled a sweeping overhaul on Thursday (Jul 27) that would direct banks to set aside billions more in capital to guard against risk, which was immediately slammed by the industry as “misguided” .If fully implemented, the proposal would raise capital requirements for large banks by an aggregate 16 per cent from current levels, with the brunt felt by the largest and most complex firms, regulators said. The industry is already warning that such a big hike could force them to trim services, raise fees, or both.

Ford Motor on Thursday raised its 2023 guidance after second-quarter earnings significantly beat Wall Street expectations, boosted by strong pricing and demand for the automaker’s traditional vehicles. Ford increased its full-year adjusted earnings forecast to a range of between $11 billion and $12 billion, up from a prior forecast $9 billion and $11 billion.

Intel reported second-quarter earnings on Thursday, and showed a return to profitability after two straight quarters of losses. The company issued a stronger-than-expected forecast.

Mastercard on Thursday (Jul 25) reported a bigger-than-expected rise in second-quarter profit, boosted by resilient spending in a turbulent economy. Unfazed by stubborn inflation and a stormy economic environment, Mastercard’s customers continued to spend heavily on travel and entertainment even as rate hikes by the Federal Reserve have increased the odds of a recession later this year.

Shell reported on Thursday (Jul 27) profits of US$5 billion in the second quarter, dropping by 56 per cent from a year earlier as oil and gas prices cooled after rallying on the back of Russia’s invasion of Ukraine. Shell increased its dividend to US$0.33 per share in the quarter, as previously announced in June. It also announced the repurchase of US$3 billion in shares over the next three months, compared with US$3.6 billion in the previous three months. Shell’s adjusted earnings missed company-provided analyst forecasts of US$5.8 billion in earnings.

McDonald’s beat market expectations for quarterly comparable sales on Thursday (Jul 27), as the restaurant chain’s relatively cheaper burgers and fries attracted cost-conscious diners in an inflationary environment. The company’s shares rose nearly 2 per cent to US$297.09 in premarket trading.

India’s Adani Enterprises said on Thursday (Jul 27) its new renewable energy-focused unit raised a working capital loan of US$394 million from Barclays and Deutsche Bank for its integrated solar module manufacturing facility. Adani New Industries Limited (ANIL) is building an integrated green hydrogen businesses, including solar modules and wind turbine manufacturing.

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


Frasers Centrepoint Trust – Steady operating metrics

Recommendation: Accumulate (Maintained), Last Done: S$2.19

Target price: S$2.35, Analyst: Darren Chan

– No financials provided in this business update. Retail portfolio occupancy increased 1.6ppts YoY to 98.7% (1H23: 99.2%).

– Tenant sales and shopper traffic improved 5% and 16% YoY respectively. YTD tenant sales averaged c.16% above pre-COVID levels.

– Maintain ACCUMULATE, DDM TP unchanged at S$2.35. Catalysts include stronger than forecast rental reversions and accretive acquisitions. The current share price implies a FY23e DPU yield of 5.6%.

Spotify Technology S.A. – Record new users added

Recommendation : ACCUMULATE (Maintained); TP: US$162.00, Last Close: US$149.13

Analyst: Jonathan Woo

– 2Q23 results were within expectations. 1H23 revenue was at 45% of our FY23e forecasts, with adj. net loss (excl. one-offs) EUR25mn lower than our FY23e forecasts. Net loss was impacted by -EUR135mn in restructuring related charges.

– Record MAU growth with 36mn new users, attracting new Gen Z listeners through better podcast content. 3Q23 guidance is for slower net add of 21mn MAUs and revenue growth of 9% YoY.

– Renewed focus on efficiency with headcount falling 2% QoQ, cut underperforming podcasts and price increases in >50 markets.

– We widen FY23e net loss by -EUR423mn to account for higher restructuring, finance, and tax charges, while keeping FY23e revenue unchanged. We maintain ACCUMULATE with a reduced DCF target price of US$162.00 (prev. US$165.00), with a WACC of 7.5%, and a terminal growth rate of 4%.

PSR Stocks Coverage



For more information, please visit:


Upcoming Webinars

Guest Presentation by Sabana Industrial REIT

Date: 28 July 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/5n8emjhy

Guest Presentation by Audience Analytics

Date: 10 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/jz5w76fa

Guest Presentation by Prime US REIT

Date: 17 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/bdd9wp2a

Guest Presentation by Netlink NBN Trust

Date: 24 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/2hpm7puv

Guest Presentation by Uni-Asia Group Limited

Date: 30 Aug 2023

Time: 12pm – 1pm

Register: https://tinyurl.com/y5nhcvzn

POEMS Podcast:

Research Videos

Weekly Market Outlook: Netflix, Tesla, Sabana Industrial REIT, Tech Analysis, US Banks, SG Weekly…
Date: 24 July 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 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!


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