Alpha Edge Investing

"Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand better than others, they have an edge.” – George Soros



UOBKH: UMS Holdings – BUY TP $1.45

1Q22: Continued Strength In Semiconductor Demand 1Q22 net profit of S$19.4m (+26% yoy, +240% qoq) was led by continued strength insemiconductor demand, as well as consolidation of sales from JEP. First interim DPSof 1 S cent was maintained. The roadmap remains bright with clear revenue visibilitystemming from UMS’ key client’s orderbook and positive outlook, while […]

UOBKH: CDL Hospitality Trusts – BUY TP $1.57

Happy Days Are Back With More Holidays And Business Trips We see continued recovery for CDREIT’s hotels in 2H22. Singapore reopened its international borders in April and will benefit from the Singapore Grand Prix and large-scale MICE events in 2H22. Maldives should see sustained recovery from influx of holidaymakers. In the UK, Hilton Cambridge benefits […]

Bloomberg: Tesla Quarantining Thousands of Workers to Restore China Output

Shanghai’s six-week lockdown stalled production at the plant Situation shows the challenge of operating in Covid Zero China Bloomberg News May 24, 2022 Tesla Inc. is isolating thousands of workers in disused factories and an old military camp in China to ensure they’re Covid-19 free, part of a large-scale plan by the electric-car maker to […]

Bloomberg: China Stimulus Brings Limited Help to Lockdown-Hit Consumers

State Council announces tax rebates, rail construction bonds Measures largely focused on ‘supply side,’ ING economist says Bloomberg News May 24, 2022, 1:19 PM GMT+8 Updated on May 24, 2022, 5:34 PM GMT+8 China rolled out a broad package of support measures largely targeted toward businesses struggling to cope with Covid lockdowns, with limited relief […]

Bloomberg: These Are the 33 New Measures China Is Taking to Boost Growth

State Council’s plan includes tax rebates for more industries Stimulus aims to boost infrastructure, help supply chains Bloomberg News May 24, 2022, 11:17 AM GMT+8 China’s cabinet introduced 33 policies on Monday to support businesses and consumer spending as economic activity is hammered by the country’s worst Covid outbreak since early 2020.  The State Council’s […]

Bloomberg Opinion: Is George Soros Right About Xi Jinping’s Third Term?

It will be tough for opponents to overcome the procedural hurdles that insulate China’s president. But his power can be dimmed. By Shuli Ren May 25, 2022, 8:14 PM GMT+8 China’s government is not a big fan of George Soros. During the Asian financial crisis, the billionaire investor tried but failed to break the Hong Kong […]

China’s Economy Worse Off in Some Ways Than 2020, Premier Says

Li tells officials to lower nation’s unemployment rate Economists expect China will miss growth target this year Bloomberg News May 25, 2022, 7:19 PM GMT+8 Updated on May 25, 2022, 9:06 PM GMT+8 China’s economy is in some respects faring worse than in 2020 when the pandemic first emerged, Premier Li Keqiang said, urging efforts […]

Bloomberg Opinion: Earnings Math Catches Up With the Tech Highfliers

The sector’s stock selloff signals investors have finally realized that future growth can’t justify ludicrous valuations. By Nir Kaissar May 24, 2022 Who could have foreseen the selloff in shares of big technology companies? Anyone who bothered to do a little math. Technology shares are taking a historic beating. The average tech stock in the Russell […]

This crypto winter will be long, cold and harsh

Jared Dilian Thu, May 19, 2022 Bitcoin and other cryptocurrency assets are notoriously volatile, routinely suffering large drops of 50% or more. This does not seem to bother the diehard crypto believers too much, who have become used to declines of this magnitude. They simply use the declines to buy more. Even so, there are […]

Civmec secures A$120 mil in new contracts

Jovi Ho Wed, May 25, 2022 Dual-listed construction and engineering services provider Civmec Limited has recently secured circa A$120 million ($116.82 million) of new contracts across multiple operating sectors. These include a car dumper replacement, a subsea project and maintenance contracts, announced the company on May 25. Civmec is listed on both the Singapore Exchange […]

DBS believes SIA’s recovery will outpace regional peers; maintains ‘buy’

Lim Hui Jie Tue, May 24, 2022 DBS Group Research’s Paul Yong and Jason Sum have maintained their “buy” call and target price of $6.20 on local airline carrier Singapore Airlines (SIA) as they expect the company to recover faster than its regional peers. Despite its 4QFY2022 ended March being in the red, the analysts […]

CGS-CIMB initiates coverage on Capitaland Investment as it exceeds FUM target

Chloe Lim Wed, May 25, 2022 CGS-CIMB Research analyst Lock Mun Yee initiates an “add” rating on Capitaland Investment (CLI) with a target price of $4.59. Lock forecasts a 16% CAGR in operating Patmi before portfolio gains and revaluations over FY2021 ended December 2021 to FY2024, driven by growth in funds under management (FUM) and […]

Schroders: Is misfiring Netflix now a value stock?

Netflix excelled during Covid-19, but now its subscriber numbers and share price have tumbled. We find out what this means for the streaming giant and its investors. Mark Herlihy Investment Writer Streaming service Netflix said earlier this month that it had lost 200,000 subscribers in the first quarter of 2022. The news sent the company’s […]

Schroders: What lies ahead for stock markets after recent falls?

Frank Thormann discusses which types of companies could offer some brightness after a gloomy period for stock markets. 19/05/2022 Frank Thormann Portfolio Manager, Multi Regional Equities Global shares have had a difficult few weeks and have fallen particular steeply since the US Federal Reserve (Fed) raised interest rates by 50 basis points (0.50%) on 4 […]

GSAM: Navigating the New Market Regime – The Merits of Value Equities

May 23, 2022  The old saw that Value investing beats Growth investing actually has held true over an extended investment horizon: since common inception in 1978, the all-cap Russell 3000 Value Index has outperformed the Russell 3000 Growth Index, and with lower volatility. However, the last 15 years have defied this paradigm. Through April 2022, […]

Manulife Investment: China rolls out measures to support economic growth 

25 April 2022 Kai Kong Chay, Senior Portfolio Manager, Greater China Equities On 15 April, the People’s Bank of China (PBOC), China’s central bank, announced a reduction in its reserve requirement ratio (RRR). Last week, the government also published 23 measures to support individual and small businesses, and stepped up its efforts to keep supply […]

Manulife Investment: Will the Fed’s approach to interest-rate hikes trigger a U.S. recession?

Frances Donald, Global Chief Economist and Head of Macroeconomic Strategy 19 May 2022 The U.S. Federal Reserve has hinted strongly that May 4’s 50 basis point interest-rate hike is merely the beginning of what’s to come. Is the U.S. central bank so determined to eliminate inflation that it’s willing to risk recession? Frances Donald, Global Chief […]

UOBKH: Kuala Lumpur Kepong – HOLD TP RM27.70

2QFY22: Results Within Expectations KLK’s 1HFY22 earnings came in within our expectations and accounted for about 55%of our full-year assumption as we expect 2HFY22 to be lower hoh due to lower CPOASPs (impacted by Indonesian palm oil policies) and lower downstream margins.However, this might be partially offset by better Malaysia upstream performance andhigher contribution from […]

UOBKH: KLCCP Stapled Group – BUY TP RM7.60

1Q22: Slightly Impacted By Dampened Consumer Sentiment KLCCSS’ results were largely within our expectations, with 1Q22 core net profit ofRM161m accounting for 23% of our full-year estimate. The office segment remainedresilient, mitigating the weaker performances of the retail and hotel segments. Expectearnings to recover on the back of the recovery in the retail and hotel […]

UOBKH: Farm Fresh – BUY TP RM1.82

4QFY22: Cessation Of Sales Masks Decent Performance Sales were flattish due to the cessation of sales to third parties by Farm Fresh’sAustralia farm. Margins were lifted by ASP revisions as Farm Fresh delivered on itsearnings. Farm Fresh has indicated its willingness to defend its margins amid spirallinginput costs. We continue to like Farm Fresh for […]

UOBKH: Carlsberg Brewery Malaysia – BUY TP RM24.70

1Q22: Within Expectations As Malaysia Sees A Resurgent Rebound Carlsberg’s sales performance was lifted by a successful CNY campaign coincidingwith eased pandemic restrictions. Raised ASPs and economies of scale more thanoffset commercial spend as margins improved amid concerns of elevated commoditiesprices. We continue to like Carlsberg for its recovery-led earnings growth, its ability tomanoeuvre high […]

KE: Farm Fresh Berhad – BUY TP RM1.95

Maintain BUY with unchanged TP of MYR1.95 FFB’s 4QFY22 results were within expectations. Despite ongoing costpressures, we believe that its outlook remains positive alongside steadyupstream and mid-stream expansion plans which will support strongdemand for its products as it ventures into new product categories (kidsgrowing-up-milk) and regional markets in FY23. We make no changes toour earnings […]

KE: Malakoff Corporation – HOLD TP RM0.65

A challenging start 1Q22 results were below our/consensus expectations. The miss relative toour forecasts was likely due to missed capacity payments at Tj Bin Energy(TBE). Maintain HOLD with a lower MYR0.65 TP (-13%). We see current riskreward as being merely balanced. In the sector, we prefer YTL Power (YTLPMK, BUY, CP: MYR0.76, MYR TP: MYR0.90). […]

CIMB: Ta Ann – HOLD TP RM5.45

On track for a robust 1H22F ■ 1Q22 core EPS a beat owing to higher CPO and timber product prices.■ We forecast higher qoq 2Q22F earnings amid increased CPO and plywoodprices, on top of seasonally stronger FFB output.■ We raise our SOP-based TP to RM5.45 but maintain our Hold call as webelieve its positive earnings […]

CIMB: Sports Toto – ADD TP RM2.15

3QFY22 in line; full recovery on the horizon ■ 3QFY6/22 core EPS (+3.2x yoy) was largely in line, but DPS tracked below.■ We now expect NFO sales to fully recover in 2QFY23F (previous: 1QFY23F).■ Reiterate Add, with a 10% lower DCF-based TP of RM2.15. 3QFY6/22 results largely in line, but DPS tracking below Sports Toto’s […]

CIMB: Malakoff Corporation – ADD TP RM0.98

Lower 1Q22 earnings on TBE outage ■ 1QFY22 core net profit was below expectations due to lower-than-expectedcontribution from TBE and higher-than-expected costs.■ Reiterate Add, with a revised SOP-based TP of RM0.98 post-earningsrevision and risk-free rate adjustment. Dividend yields decent at >6%. Key results highlights Malakoff’s 1QFY22 results came in below expectations, at 17% of our […]

CIMB: Kuala Lumpur Kepong – ADD TP RM28.64

Indonesia’s export policy a risk for 2HFY22F ■ KLK’s 1HFY9/22 core net profit was in line, at 50% of our full-year forecast.■ Indonesia plans to impose Domestic Market Obligation; higher export leviesare likely to affect KLK’s sales volumes and price achievements in Indonesia.■ We raise our SOP discount from 10% to 15%, mainly to reflect […]

DBS: CASH+ investing to mitigate inflation

The prospect of the highest inflation in 40 years leaves it difficult to imagine that cash would register positive real returns Chief Investment Office, Hou Wey Fook 23 May 2022 Inflation is here to stay with Russia-Ukraine crisis and China’s Covid-19 situation To avoid erosion of spending power, stay invested in income assets In Fixed […]

CIMB: KLCCP Stapled Group – HOLD TP RM6.93

Robust retail performance in 1QFY22 ■ 1QFY22 results were in line; core net profit grew a decent 9.6% yoy.■ Suria KLCC’s tenant sales recovery outpaced the turnaround in retail footfall.MO recorded higher domestic-driven occupancy rate with lower losses.■ Retain Hold, with a higher TP (FY22-24F dividend yields of 4.8-5.4%). 1QFY22 results in line; core net […]

CIMB: Carlsberg Brewery – ADD TP RM25.20

To benefit from pick-up in sales volume ■ 1Q22 core net profit of RM92.4m (+36.7% yoy) was in line with estimates,with growth driven by higher sales volume and selling price hikes.■ We project 18% growth in FY22F sales volume, to be driven by the easing oflockdown measures, border reopenings, and new product launches.■ Reiterate Add, […]

Japan Foods reports higher revenue but lower net profit for FY2022

Goola Warden Wed, May 25, 2022 Japan Foods Holding reported a 7.1% year-on-year increase in revenue to $54.6 million for the year ended March 31, 2022, the company’s FY2022. The revenue increase during the period under review was driven mainly by a seasonally stronger second half and the performance of Japan Foods’ new Halal segment, […]

ESR-LOGOS REIT to Divest 3 Sanitarium Drive in Australia

Goola Warden Wed, May 25, 2022  ESR-LOGOS REIT’s manager announced that it has entered into an agreement to divest 3 Sanitarium Drive, Berkeley Vale, New South Wales, Australia to Australasian Conference Association Limited for $53.4 million (A$55.0 million) (excluding divestment costs and applicable goods and services tax). The agreed sale price represents an 18.5% premium […]

‘Stars are aligned’ for hospitality and office REITs, which will ‘continue to shine’: DBS

Jovi Ho Wed, May 25, 2022 Singapore REITs (SREITs) are seen as a safe haven when the yield curve flattens in a rising interest rate environment. Even amid market volatility, “the stars are aligned” for hospitality and office sectors, say DBS Group Research analysts Rachel Tan and Dale Lai. “While the SREITs are not spared […]

CIMB: CHN – Strategy Note – Smartphone demand recovery on track in 2H22F

■ Looking ahead to 2H22F: Smartphone demand recovery, easing supply chain constraints and China’s Omicron containment. ■ 2Q22F: China’s Omicron pandemic, production and logistics disruptions and weak China smartphone demand are almost behind us. ■Global smartphone shipments set to resume growth in 3Q-4Q22F due to easing smartphone component shortages, improving logistics and production efficiency in China and […]

DBS: HKSAR – Downgrading GDP forecast

Real GDP in 1Q22 fell by 4.0% YoY and 2.9% QoQ. A recovery in consumption is in sight, on a further relaxation in social distancing measures from tomorrow. External trade underperformed from global supply-chain disruptions and moderating demand from its major trading partners.  The unemployment rate will start retreating but the dwindling pace of the […]

DBS: Nexteer Automotive Group Ltd – BUY TP HK$8.00

<Meeting Takeaways> Nexteer (1316 HK): 1Q22 business update; strong new business wins Launched 11 major customer programs in 1Q22, implying auto OEMs are still progressing with their new model pipeline Strong new business wins of about US$2.7bn, accounting for about 45% of 2022 target of US$6bn.  Rising EV exposure, accounting for almost all of 1Q […]

DBS: VNET Group Inc – BUY TP $13.60

Earnings First Take: 1Q22 adjusted EBITDA grew by 21.9% y-o-y, higher than market expectations Revenue increased by 18.6% y-o-y to Rmb1,645m in 1Q22, driven by 28.1% y-o-y expansion in utilised cabinets Adjusted EBITDA grew by 21.9% y-o-y to Rmb506m, higher than market expectations FY22 guidance for revenue and adjusted EBITDA remains unchanged Currently rate BUY […]

DBS: Sun Art Retail Group Ltd – HOLD TP HK$3.23

Results first-take: FY22 net loss of RMB0.83bn, in line with profit warning Sun Art recorded attributable loss of RMB0.74bn for FY22 (i.e., 12 months ended Mar 2022), vs. its attributable profit of RMB2.1bn in FY21. Adding back the after-tax provision of c.RMB1.4bn (due to store impairment losses, special loss allowance and litigation), core net profit […]

DBS: Guangzhou Automobile Group Co Ltd – BUY TP HK$9.00

Riding on GBA growth potential Dominant auto player in GBA; anticipate auto sales rebound on stimulus Speeding up NEV business; GAC AION Apr-22 sales ahead of EV Trio (NIO, XPeng, Li Auto) Aggressive in new smart vehicle models development NEV subsidy and additional car license plates are positive on car sales for GAC. More importantly, […]

DBS: Kuaishou Technology – BUY TP HK$116

1Q22 results ahead of market expectations •             Revenue grew 23.8% y-o-y to Rmb21bn, 2.3% ahead of consensus •             User scale and duration hit record highs again, MAU +15% y-o-y to 597mn •             Ecommerce GMV grew 47.7% y-o-y to RMB175.1bn, 5.2% ahead of market expectations •             Non-IFRS net loss was 16% better than consensus •             Online […]


Strong sales despite industry challenges Diversification mitigated the lockdown impact; strong Apr-22 and 4M22 vehicle sales ahead of peers Intensifying smart features to enhance market competitiveness Launching high-end new models is an earnings catalyst  The strong Apr-22 sales once again demonstrates the company’s diversification strategy (both in terms of location and supply chain), which have […]

DBS: China Auto Sector – Auto cluster in Greater Bay Area shines

Pandemic lockdowns expected to have smaller impact on Greater Bay Area (GBA) Better sales prospects supported by faster income growth and lower vehicle penetration Comprehensive medium-term development plans and stimulus measures are positives for GBA’s outlook  GBA beneficiaries are BYD (1211 HK) and Guangzhou Auto (2238 HK) Supportive measures to revive vehicle market. New vehicle registrations in Shanghai and […]

DBS: First quarter GDP figures reaffirmed slower growth outlook

First quarter GDP figures reaffirmed slower growth outlook Final GDP figures for the first quarter announced today saw economic growth momentum easing amid increasing external headwinds. The headline GDP growth number registered 3.7% YoY (DBSf: 3.6%), much in line with expectation, but down from 6.1% in the previous quarter. On the margin, growth momentum has […]

DBS: Singapore Airlines Ltd – BUY TP $6.20

Buy your tickets before it’s too late SIA slipped into the red in 4QFY22, but that was in line with expectations Stronger than anticipated passenger traffic, coupled with healthy passenger and cargo yields should offset cost headwinds Lift FY23/24F net profit estimates to reflect higher near-term passenger load factors. Maintain BUY with unchanged TP of […]

KGI: WH Group Ltd (288 HK) – Riding on the upswing of pig prices

RE-ITERATE BUY Entry – 5.55 Target – 6.20 Stop Loss – 5.25 WH Group Ltd is an investment holding company mainly engaged in the pork business. The Company operates its business through three segments. The Packaged Meats segment is engaged in the production, wholesale and retail of low temperature and high temperature meat products. The […]

KGI: Fuyao Glass Industry Group Co Ltd (3606 HK) – Short–term headwinds are priced in

Buy Entry – 34 Target – 38 Stop Loss – 32 Fuyao Glass Industry Group Co Ltd is a China-based company, principally engaged in the manufacture and distribution of float glasses and automobile glasses. The company’s products portfolio consist of automobile glasses, such as coating glasses and others, which are applied in passenger cars, buses, […]

%d bloggers like this: