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What happened in markets this week, and what are analysts talking about?
SGX
•Phillip Capital; Maintain Neutral with lower TP S$10.78. The House maintained Neutral on the stock, reducing its FY22F earnings by 6.1% as the House factor in lower volumes for FTSE China A50 contracts, following HKEX’s move to launch MSCI China A50 Connect Index in Oct this year. FTSE China A50 Index Futures has the largest turnover of equity index futures for SGX, accounting for 57% of its total equity index futures, and contribute to 10% of overall revenue in FY21.
Golden Energy & Resources
•KGI;Initiate at Outperform with TP S$0.64: The House likes Golden Energy with its roots as one of Indonesia’s largest coal miner, and having branch out into precious metals over the past 4 years. The House sees the company growing its production by 30% over the next 3 years and have a DCF based TP of S$0.64.
Keppel Pacific Oak US REIT
UOBKayhian; Initiate at BUY with TP US$1.10 The House initated the Company at BUY with TP US$1.10, as it sees the company benefitting from in-migration to Texas and Washington where there is no state level personal income tax. Keppel Pacific Oak US REIT offers an attractive yield of 8.6% for FY21.
About GEM COMM
We are an International Investor Relations firm (IR) based in Singapore. We specialise in Investor Relations, Public Relations, marketing, branding and messaging strategies for clients that include organisations of all sizes across Asia, Oceania and US.
GEM COMM advice and solves stakeholders’ issues, drive growth, reposition your business, improve your marketing and Public Relations (PR) or engage with investment community in your leadership or strategy story. We have a track record of helping clients reach these goals. We create and implement PR & media content, mitigate crisis and issues, establish and improve thought leadership & content marketing.
GEM COMM Engagement types include:
– IR/PR retainer program
– Crisis and issues projects;
– Content marketing (from research to lead generation) inclusive of Press Release drafting, Media Pitch, Website content, etc.
What happened in markets this week, and what are analysts talking about?
Propnex
•Phillip Capital; Downgrade to Accumulate. The House downgraded the stock to Accumulate with TP S$2.08. The House lift its FY21F PATMI estimates by 53% but believes the recent rally has priced in most of the positives. The downgrade follows UOBKH who also downgraded the company to HOLD with TP S$2.09 a week ago. Click here
Sasseur REIT
•KGI; Downgrade to Neutral: The House downgraded the REIT to neutral even as it raise its TP to S$0.97 as they believe the year to date price appreciation has priced in the recovery from the COVID-19 lows. The House also turns more cautious of China’s economic growth in 2H with the regulatory-induced slowdown and spread of Delta Strain.
Straits Trading
UOBKayhian; Non-rated The House highlighted Straits Trading’s diverse investment portfolio that span across asset class and geographies with a good track record of recycling capital. Recent sale of its ARA stake will also see an increase in its NAV and underscore Straits Trading’s ability to recycle capital. The House notes that Straits Trading is trading at just 0.5x P/NAV post completion of its sale of ARA stake.
About GEM COMM
We are an International Investor Relations firm (IR) based in Singapore. We specialise in Investor Relations, Public Relations, marketing, branding and messaging strategies for clients that include organisations of all sizes across Asia, Oceania and US.
GEM COMM advice and solves stakeholders’ issues, drive growth, reposition your business, improve your marketing and Public Relations (PR) or engage with investment community in your leadership or strategy story. We have a track record of helping clients reach these goals. We create and implement PR & media content, mitigate crisis and issues, establish and improve thought leadership & content marketing.
GEM COMM Engagement types include:
– IR/PR retainer program
– Crisis and issues projects;
– Content marketing (from research to lead generation) inclusive of Press Release drafting, Media Pitch, Website content, etc.
Communication and trust are essentials, if you want to build relationships and be successful in life.
Realising after the fact that you were lied to, and after each occurrence, you will beat yourself up for trusting the wrong person, which resulted in poor decisions.
Ethical persuaders do not lie, conceal facts or distort the truth in order to get what they want. They will explicitly communicate the facts and truth. A deceitful person will distort the truth and conceal facts such as asking for a higher salary increment from your existing employer in order to get a higher salary from a potential employer or manipulate your financial statements- equal deceit.
Ethical persuaders let you know when and why you choose them than others and why are they charging you a certain price. A trusted ethical persuader will tell you in advance in they can fulfil an agreement or if it’s legal to proceed certain expectations from clients.
Case Study:
Mr Li wants a cheap consultation service and expects the vendor to commit to increase their share price by a certain percentage. An Ethical and trusted consultant deals with this:
“Mr Li, our price is slightly higher than our competitors- the reason is we hire outstanding employees to create quality content and branding. Another reason is we guarantee to be there for you when there is a crisis. Unlike some competitors, they will charge you an exorbitant amount (the hidden plus plus) at the end of the invoice. We do not commit to increase share price, which equates to stock market manipulation. However, we guarantee higher exposure of your company in compliance of the corporate governance. You have my word.”
The reason you engage professional services of people like lawyers, doctors and Investor relations is because they have more expertise than you do. They have better in the specific field than you do and have the right network to achieve the objective. Saves your time, effort and build a stronger fundamental.
No matter how much expertise someone may have, if you do not trust them, you’re not likely to follow their advice.
Conclusion
Be truthful in all your dealings; Make sure your words and deeds match.
“Trust is the glue of life. It’s the most essential ingredient in effective communication. It’s the foundational principle that holds all relationships.”- Stephen Covey
About GEM COMM
We are an International Investor Relations firm (IR) based in Singapore. We specialise in Investor Relations, Public Relations, marketing, branding and messaging strategies for clients that include organisations of all sizes across Asia, Oceania and US.
GEM COMM advice and solves stakeholders’ issues, drive growth, reposition your business, improve your marketing and Public Relations (PR) or engage with investment community in your leadership or strategy story. We have a track record of helping clients reach these goals. We create and implement PR & media content, mitigate crisis and issues, establish and improve thought leadership & content marketing.
GEM COMM Engagement types include:
– IR/PR retainer program
– Crisis and issues projects;
– Content marketing (from research to lead generation) inclusive of Press Release drafting, Media Pitch, Website content, etc.
See more on our factsheet.
https://www.gem-comm.com/old-backup/stock-manipulation-sid-bulletin/
What happened in markets this week, and what are analysts talking about?
Civmec
•KGI; Initiate Outperform with TP S$0.86. The House thinks that Civmec has both short and long term drivers. Short term drivers include favourable industry dynamics driven by China’s appetite for iron ore. The likelihood of increased contract wins as Australian government ramps up defence and infrastucture spending also bodes well for the Group in the long term. The House has a TP of S$0.86 based on 12x FY2022F P/E
Propnex
•UOBKH; Downgrade to HOLD with TP S$2.09: The House downgraded Propnex to HOLD but with a higher TP of S$2.09. Propnex reported a very strong 1H21 profit of +115% yoy to S$34.4m. However, the House is worried that 2021 could be the peak for the company’s earnings given the strong transaction volumes seen in 1H21, and new and potentially lucrative en bloc team now in place. In the short term, the house think share price will be continued to be prop up on newsflow on transaction volume and enblocs. However, the house believe that, the strength will be difficult to sustain going into 4Q21 and 2022.
Singtel
Maybank; Maintain BUY with higher TP S$2.83 1QFY22 net profit (+31% yoy) of S$451m was broadly in line with estimate, driven by broad-based growth across all business segments. The House is starting to see green shoots emerge despite a challenging operating environment driven by (1) Turnaround in Bharti’s profit (2) increase in ARPU from 5G plans and (3) return of roaming revenues with gradual reopening of travel borders.
We are an International Investor Relations firm (IR) based in Singapore. We specialise in Investor Relations, Public Relations, marketing, branding and messaging strategies for clients that include organisations of all sizes across Asia, Oceania and US.
About GEM COMM
GEM COMM advice and solves stakeholders’ issues, drive growth, reposition your business, improve your marketing and Public Relations (PR) or engage with investment community in your leadership or strategy story. We have a track record of helping clients reach these goals. We create and implement PR & media content, mitigate crisis and issues, establish and improve thought leadership & content marketing.
GEM COMM Engagement types include:
– IR/PR retainer program
– Crisis and issues projects;
– Content marketing (from research to lead generation) inclusive of Press Release drafting, Media Pitch, Website content, etc.
See more on our factsheet.
As featured on The Edge
Earnings of Enviro-Hub Holdings came in at $0.7 million in 1HFY21 ended June, a reversal from the losses of $1.6 million logged in the year before.
On a fully diluted basis, this translates to earnings per share of 0.042 cents, compared to losses per share of 0.154 cents in 1HFY20.
With this, net asset value per share was 4.24 cents as at June 30, versus 4.50 cents on Dec 31.
Revenue for the first six months of the year was up 19.6% y-o-y to $17.7 million, thanks to a 78.8% jump in revenue from its e-waste recycling segment.
As featured on Khmer Times
Hong Lai Huat has been farming in Cambodia since 2008. The Singapore company got off to a rocky start, because its original crop was corn, which is labour-intensive and dependent on the right weather. It switched to cassava in 2013 because it is more resilient than maize – and saw profits take off.
Aoral Farm is now one of the largest privately owned cassava plantations and starch factories in the Kingdom. It occupies 10,000 hectares of land in Kampong Speu province. Sold under the CAMFARM brand, the farm supplies as much as 100,000 tonnes of cassava starch, also known as tapioca, a year.
The Coronavirus pandemic made Hong Lai Huat realise the importance of food security so it decided to sell off its Singapore Farm Resort, which was mainly focused on hotels, restaurants and beer gardens, and use the money to turn Aoral Farm into a mixed-use agricultural hub one seventh the size of Singapore.
As featured on The Business Times
THE proposed sale process of mm2 Asia MM2 Asia: 1B0 +4.84%‘s cinema business will run in parallel with its runway toward listing it on the Singapore Exchange’s Catalist board, the company said on Tuesday.
In a bourse filing, the company said that notwithstanding the pending offer for 80 per cent of the business, called mm2 Connect, from local investor Kingsmead Properties pegged at a range of S$80 million to S$120 million, its proposed initial public offering (IPO) continues and will proceed if market conditions are favourable and shareholders approve the plan.
In other words, if Kingsmead is unable to complete its acquisition ahead of mm2 Connect’s IPO, the transaction will not proceed, the entertainment firm said. Instead, as previously announced, Kingsmead will have the option of using the S$3 million in deposit it has paid to mm2 Asia so far to purchase shares in mm2 Connect at a discount to the cinema IPO price.
Both transactions will require the approval of mm2 Asia’s shareholders, its board added.
Enviro Healthcare, a wholly-owned unit of Enviro-Hub Holdings, has entered a sale-and-purchase agreement for its planned acquisition of the remaining 75 per cent stake in an associate, Pastel Glove, for S$46.8 million.
The mainboard-listed company previously disclosed on May 21 that it would pay S$23.4 million in cash for Pastel Glove, and issue 292,500,000 new shares at S$0.08 apiece. There will be a one-year moratorium for the shares.
Enviro-Hub: Update on Pastel Glove
What happened in markets this week, and what are analysts talking about?
UOB
•DBS; Maintain BUY TP S$29.20 Net Profit beat consensus by ~4% due to lower than expected provisions and higher than expected non interest income. The Bank resumed dividend policy of 50% payout ratio.
•UOBKH; Not rated. Net interest income turned around since 2H20. The House sees the bank improving cost efficiency and asset quality being stabilised. Management has lowered its guidance for credit costs from below 30bp to below 25bp for 2021 due to its resilient portfolio.
Keppel Corp to accquire SPH
•UOBKH: The House view Keppel Corp’s proposal positively as it allows the Group to enter new property segments and expand its asset management to generate more recurring income. The House recommends SPH investors to accept offer, as although offer could be higher but not by much. A full privatisation offer also avoids scenario where prime assets are cherry picked.
KGI; Maintain Outperform on Keppel Corp with lower TP of S$6.22. The House sees the acquisition of SPH by Keppel a good move to swap out underperforming assets, but remains netural on the acquisition. The key advantage they see is higher AUM from acquisition and hence higher recurring income. Keppel expects Keppel Capital’s AUM to increase 27% to S$47b with the transaction. SPH’s key assets include UK student accomodations, stake in SPH REIT and other development assets (eg. Woodleigh Residences)
Rex
KGI: Initiate Outperform with TP S$0.32 Rex owns and operates an oil producing field in Oman and has a portfolio of exploration licences in Norway. The House forecast Rex’s net cash position to surge to US$107m by FY2022F based on US$65 oil price.