Daily Morning Note – 30 November 2020
PHILLIP SUMMARY
Stocks in Asia are poised for gains as investors monitored progress on the path to a coronavirus vaccine on the final day of a record month for global equities. Oil is in focus. Stock futures traded higher late Friday in Japan and Hong Kong. On Sunday, the U.S. Surgeon General Jerome Adams said the federal government hopes to quickly review and approve requests from two big drugs makers for emergency approval of their Covid-19 vaccines. The pound ticked higher in early trading as Brexit talks continue.
BREAKING NEWS
Myanmar-focused Yoma Strategic Holdings’ full-year net loss has widened to US$60.5 million, from US$36.9 million a year ago. This comes amid a higher share of losses of joint ventures, an increase in the cost of sales, administrative expenses, as well as income tax expenses, showed results released by the mainboard-listed group on Saturday.
First Real Estate Investment Trust (First Reit) will restructure the master lease agreements of its 11 Indonesian hospital assets leased to former parent company Lippo Karawaci (LPKR). The trustee of First Reit on Saturday signed a memorandum of understanding (MOU) with LPKR, in which all the LPKR master lease agreements are extended to Dec 31, 2035, with an option for a further 15-year term by mutual agreement.
Mainboard-listed steel dealer BRC Asia’s full-year net profit fell 35.5 per cent to S$20.4 million, from S$31.6 million a year earlier, amid disruptions due to Covid-19. Revenue for the 12 months ended Sept 30, 2020 dropped 32.9 per cent to S$612.4 million, from S$913.3 million a year ago, on “substantially lower sales volume due to severe disruptions during and after the ‘circuit breaker’,” it said in a bourse filing on Saturday.
Food and beverage (F&B) play Jumbo Group is looking to acquire a 75 per cent interest in popular dumpling noodle stall Kok Kee Wanton Noodle for S$2.1 million in cash and shares. This will mark the group’s first inorganic expansion since it listed in 2015.
Thai Beverage Public Co (ThaiBev) said in a post-earnings conference call on Thursday evening that it does not expect a huge jump in sales in the months ahead as the pandemic’s impact lingers. Still, analysts remain upbeat about the company’s road to recovery.
Shares in Catalist-listed Biolidics rallied for a third consecutive day on Friday, advancing more than 20 per cent by the closing bell. This comes after the medtech firm announced it will distribute Covid-19 test kits in Indonesia, Singapore and the Philippines.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR
TECHNICAL REPORTS
NetEase Inc
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
NetEase Inc (US: NTES) corrective downside may soon be coming to an end based on the technical and wave analysis.
Sea Limited
Analyst: Chua Wei Ren
Recommended Action: Technical BUY
Sea Limited (US: SE) upside is still on play despite some minor correction since our report dated 28th October 2020. Recent technical indicate a return of the upside once more
>> Read more Technical reports
RESEARCH REPORTS
Thai Beverage PLC– A spirited performance
Recommendation: BUY (Maintained); TP S$0.86, Last close: S$0.75; Analyst Paul Chew
– 4Q20 revenue and earnings were within expectations, with FY20 numbers at 101%/99% of our forecasts. Revenue was up 2%, EBITDA up 31% YoY.
– 4Q20 spirit revenue rose 11% YoY on an 8.9% rise in volumes.
– 4Q20 EBITDA jumped 31% from higher sales and lower marketing costs.
– Maintain BUY. TP raised to S$0.86 from S$0.82 after we increase FY21e EPS (cents) by 4%. Our TP remains based on 18x earnings, its 5-year average. Operations have defied a challenging economic environment. Company benefitted from consumers’ trade-down to white spirits and aggressive cut to marketing spend. THBEV remains dominant in the spirit market and we expect a rebound in volumes in FY21e.
SG Bonds Weekly – Week 49
Credit Analyst: Timothy Ang
– Chinese real estate issuers remain active in the Asia primary debt market space pricing 5 deals totalling USD 920mm this week with average book coverage for Chinese real estate high yield new issues at 8.5x.
– Investor demand for high yield risk was very strong in the primary market this week with deals getting 7.8x covered on average.
– Singapore Airlines (SIA) has priced S$500 million worth of 3.5 per cent notes due 2030 under its S$10 billion multi-currency medium-term note programme.
– Singapore-based TML Holdings, a subsidiary of Indian carmaker Tata Motors, issued USD 300mm 3.5NC2.5 senior unsecured notes at 5.5%, after tightening 50bps from the initial price guidance.
HK Reports – Read up on our Hong Kong reports here
RESEARCH VIDEOS
Webinar Of The Week
Market Outlook: SATS, StarHub, Civmec, Centurion, DBS, SREITs Monthly and SG Weekly
Date: 23 November 2020
Updates summarised in 3 minutes
Phillip Research in 3 minutes: #26 – iX Biopharma Ltd; Initiation
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