DAILY MORNING NOTE | 28 November 2023

**Do note that the last day of Morning Note Issuance will be on 14 December 2023. Morning Note will resume in January 2024**

Trade of the Day

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6)

Analyst: Zane Aw

(Current Price: S$1.47) – TECHNICAL BUY
Buy price: S$1.47 Stop loss: S$1.43 (-2.72%)
Take profit 1: S$1.56 (+6.12%) Take profit 2: S$1.65 (+12.24%)

Summary of Trades Initiated in Past Week

Singapore stocks closed lower on Monday (Nov 27), tracking declines in the region. Singapore stocks fell 0.3 per cent, or 8.39 points, to end at 3,086.42. Losers outnumbered gainers 308 to 253, with 778.7 million securities worth S$663.7 million having changed hands. Elsewhere in the region, key indices were largely down. The Nikkei 225 lost 0.5 per cent; the Kospi Composite Index slid 0.04 per cent; the Hang Seng Index fell 0.2 per cent; and the FTSE Bursa Malaysia KLCI declined 0.4 per cent.

Stocks fell on Monday, as traders took a breather after the major averages posted a four-week winning streak. The Dow Jones Industrial Average lost 56.68 points, or 0.16%, to 35,333.47. The S&P 500 shed 0.20% to 4,550.43. The Nasdaq Composite edged lower 0.07% to 14,241.02.

Top gainers & losers

EVENTS OF THE WEEK

SG

Coffeeshop operator Kimly reported a 7.2 per cent rise in net profit to S$36.5 million for the full year ended Sep 30, 2023, from S$34 million previously. The increase was due primarily to a S$2.5 million gain from the disposal of its confectionery business. Excluding the gain on disposal, net profit for FY2023 fell 0.2 per cent to S$34 million, when compared with the year-ago period, Catalist-listed Kimly said in a bourse filing on Monday (Nov 27). Revenue for the full year fell 1.2 per cent to S$313.9 million, from S$317.7 million a year ago. The decline in revenue was due primarily to a S$7.4 million drop in contributions from Kimly’s food retail division, which posted sales of S$183.8 million in FY2023, compared with S$191.2 million in the year-ago period.

Sembcorp Industries on Monday (Nov 27) said it has inked two separate agreements to acquire wind assets in China and India for a total consideration of S$200 million. The assets collectively amount to 428 megawatts (MW), the group said in an announcement on the Singapore bourse. Sembcorp’s wholly-owned unit Sembcorp Energy (Shanghai) Holding signed an agreement with Envision Energy Co to acquire the full share capital of Qinzhou Yuanneng Wind Power Co for an equity consideration of about S$130 million. Qinzhou Yuanneng owns 200 MW of operational wind assets in Guangxi, China, the company said. Another wholly-owned unit of Sembcorp, Green Infra Wind Energy, has also signed an agreement with Leap Green Energy – an independent power producer in Tamil Nadu, India.

Real estate developer Mapletree has received permission from the authorities to build an interim ferry and cruise terminal in HarbourFront, paving the way for the potential redevelopment of HarbourFront Centre, which currently houses a ferry and cruise terminal. The Urban Redevelopment Authority (URA) on Sep 11 issued written permission to HarbourFront Four, a subsidiary of Mapletree, to build a two-storey interim ferry and cruise terminal. According to the document, the proposed terminal will have a floor area of 17,428.68 square metres (sq m), and can be used for a decade until Sep 11, 2033. Permission to relocate existing jetties and pontoons in the area was also granted. The interim terminal has to be demolished after its function ends.

Singapore’s services industries posted a 3.2 per cent year-on-year rise in business receipts in Q3, easing from the revised 3.8 per cent increase in the preceding quarter, data from the Department of Statistics (Singstat) showed on Monday (Nov 27). The latest print marked the fifth consecutive quarter of slowing growth. On a non-seasonally adjusted quarterly basis, business receipts were up 1.9 per cent in Q3, extending the previous quarter’s 2.2 per cent expansion. Singstat’s business receipts index excludes wholesale trade, retail trade, and accommodation and food services, which are tracked separately.

US

Oil prices fell on Monday, with the Brent benchmark dipping below US$80 a barrel as investors awaited this week’s Opec+ meeting and expected curbs on supplies into 2024. Brent crude futures were down 60 cents, or 0.7 per cent, at US$79.98 a barrel. US West Texas Intermediate (WTI) crude futures lost 68 cents, or 0.9 per cent, to US$74.86. Both contracts lost US$1 in early trading. Last week, prices tumbled when Opec+ – the Organization of the Petroleum Exporting Countries (Opec) and allies including Russia – postponed to Nov 30 a ministerial meeting to iron out differences on production targets for African producers.

Shein has confidentially filed to go public in the U.S. as the Chinese-founded fast fashion juggernaut looks to expand its global reach with a long-rumored IPO, CNBC has learned. The retailer was last valued at $66 billion, and could be ready to start trading on the public markets as soon as 2024, people familiar with the matter said Monday. It is unclear how much the company is currently worth. But its valuation has been a central point of debate among Shein and the advisors it’s working with, people familiar with the matter said.

Shares of iRobot plunged 17% Monday after the European Union’s antitrust watchdog issued a warning that Amazon ’s planned $1.7 billion acquisition of the Roomba maker raises competition concerns. The European Commission opened an in-depth probe into the purchase in July and is expected to rule on the deal by Feb. 14. In a statement Monday, the commission said it has informed Amazon of its “preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners.” An Amazon spokesperson told CNBC in a statement that the company continues to work with the commission on addressing concerns identified in its probe.

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

RESEARCH REPORTS

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