WHAT HAPPENED LAST NIGHT
US stocks were higher after the close on Monday, as gains in the consumer discretionary, energy and materials sectors led shares higher. At the close of the NYSE, the DJIA rose 0.18% while the S&P 500 index gained 0.47%, and the NASDAQ Composite index advanced 0.90%. Advancing stocks outnumbered falling ones on the NYSE by 2,122 to 1,245 and 120 ended unchanged; on the Nasdaq Stock Exchange, 2,964 advanced and 1,679 declined, while 186 ended unchanged. (Source: WSJ, CNBC).
WHAT’S IN THE PACK
Singapore Company Update:
iFAST Corp – 3Q21: Five-Year Plan provides a glimpse of upward trajectory.
(IFAST SP/BUY/S$9.21/Target: S$11.50)
Overall, iFast’s AUA has continued to scale up at a faster-than-expected pace to S$18.38b (+46% yoy, +27% qoq), helping the fintech firm achieve greater operating scale. Net inflows of client assets remained healthy at S$0.87b in 3Q21, leading to net inflows of S$2.99b for 9M21. iFAST remains committed to its previously stated group AUA target of S$100b by 2028, implying a CAGR of 27% over the next seven years. Maintain BUY with target price of S$11.50…
Mapletree Logistics Trust – 2QFY22: Stepping up the pace of acquisitions in 2HFY22.
(MLT SP/HOLD/S$1.99/Target: S$2.08)
MLT’s 2QFY22 results were within our expectations with portfolio occupancy stable at 97.8% and positive rental reversion of +2.4%. MLT completed four acquisitions worth only S$351m in 1HFY22 but the pace of acquisitions is expected to pick up substantially in 2HFY22. MLT could acquire logistics properties in China from sponsor Mapletree Investments and in Japan from third-party vendors. However, distribution yield remains unattractive at 4.3%. Maintain HOLD. Target price: S$2.08…
HK/ China Company Update:
China Resources Cement – 3Q2 Results miss expectation; high co cost and production cut weigh on margins.
(1313 HK/BUY/HK$7.13/Target: HK$8.70)
CR Cement posted a 47.5% yoy and 27.9% qoq decline in 3Q21 net profit, weaker than our and market estimates. Gross margin contracted 10.9ppt to 28.9%, mainly dragged down by high coal cost and lower sales volumes. We expect earnings to recover in 4Q21 with a pick-up in ASP, while headwinds from the high coal cost and production curbs resulting from the power shortage should persist. Lower target price to HK$8.70 on lower earnings forecast. Maintain BUY…
Singapore Technical Analysis:
SIA Engineering Co (SIE SP) – Trading BUY
Price rebounded from the resistance turned- support level, which is also near to the cloud and base line supports. There is still a bullish conversion and base line crossover that hint at potential upside ahead…
AEM Holdings (AEM SP) – Trading BUY
Price managed to stay above the cloud since the breakout, keeping the bullish trend intact. The momentum indicator, the MACD, is bullish and is rising…