WHAT HAPPENED LAST NIGHT
US stocks were higher after the close on Wednesday, as gains in the utilities, consumer staples and real estate sectors led shares higher. At the close of the NYSE, the DJIA rose 0.30% while the S&P 500 index gained 0.41%, and the NASDAQ Composite index advanced 0.47%. Falling stocks outnumbered advancing ones on the NYSE by 1,758 to 1,502 and 155 ended unchanged; on the Nasdaq Stock Exchange, 2,721 declined and 1,730 advanced, while 205 ended unchanged. (Source: WSJ, CNBC).
Singapore Company Update:
Singapore Press Holdings – FY21:
Stark rebound, no longer dragged down by the media segment.
(SPH SP/ACCEPT OFFER/S$1.98/Target: S$2.10)
SPH reported its FY21 results with strong operating profit and PATMI. Operating profit rose 70% yoy while PATMI was strong at S$93m, backed by strong contributions from the PBSA and retail & commercial segments. Transfer of the media segment is expected to be completed in Dec 21 while the EGM for Keppel’s privatisation offer is set to be held in mid-Nov 21. We recommend shareholders to ACCEPT
Keppel’s offer at S$2.099/share given the fair valuation of SPH, in our view…
HK/ China Company Update:
Property – 2021 Policy Address: Minimal near-term impact from supply policies.
Hong Kong’s CE delivered the 2021 Policy Address yesterday, with a focus on shifting back to solving the housing issues in Hong Kong. The highlight is the new Northern Metropolis development plan, which is
expected to provide 516,000-536,000 new housing units. Together with other supply policies, supply could increase significantly about 10 years from now, but demand still outweighs supply in the short-mid run. Maintain MARKET WEIGHT with NWD and SHKP as top picks…
Niu Technologies – An up-and coming global 2WEV market.
(NIU US/BUY/US$24.37/Target: US$40.00)
We initiate coverage on Niu with a BUY based on its fast expanding share of the burgeoning two-wheeled electric vehicle (2WEV) market worldwide. Niu is one of the few 2WEV makers in China that specialises in manufacturing the increasingly popular LIB-powered 2WEVs in both China and overseas markets. We expect Niu to post a 55% EPS CAGR in 2020-23. Target price: US$40.00.
Singapore Technical Analysis:
Singapore Telecommunications (ST SP) – Trading BUY
The price decline was halted at the base line support, coinciding with the resistance-turned-support level. There is still a bullish conversion and base line crossover that hints at potential upside…
Wilmar International (WIL SP) – Trading BUY
Price broke and closed above its recent high yesterday with a long bullish candle after being supported by the middle Bollinger band, which is also the 20-day moving average…