Category

Singapore

Singapore: SPH REIT, Grab and more

By | Daily Briefs, Singapore

In today’s briefing:

  • SPH Offer Open – Starts to Look Interesting
  • GoTo: A Private Placement Larger Than the IPO and a 10% Potential Dilution

SPH Offer Open – Starts to Look Interesting

By Travis Lundy

  • The SPH REIT (SPHREIT SP) Chain Offer was launched on Thursday 19 May. 
  • The Chain Offer Price has been revised lower from the original level to be S$0.9372/unit, as discussed a few times in these pages. 
  • The units have underperformed Peer Baskets for the last few months and have now fallen to the Chain Offer Price. That presents opportunities

GoTo: A Private Placement Larger Than the IPO and a 10% Potential Dilution

By Shifara Samsudeen, ACMA, CGMA

  • Superapp GoTo (GOTO IJ) on Friday announced that it plans to issue 118.4bn shares through a private placement subject to shareholder approval.
  • This fresh issue accounts for 9.9% of the total outstanding shares of the company and the announcement comes 2-months after the company’s US$1.1bn IPO in March this year.
  • GoTo’s shares are down 20.4% since its IPO and the shares are trading IDR304 a piece, well below its IPO price of IDR338 per share.

Before it’s here, it’s on Smartkarma

Singapore: Frasers Hospitality Trust, Hyphens Pharma International and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Fraser Hospitality Trust (FRHO): Privatization + Recovery.
  • Smartkarma Corporate Webinar | Hyphens Pharma: Deepening Presence in ASEAN

Fraser Hospitality Trust (FRHO): Privatization + Recovery.

By Henry Soediarko

  • Most of the countries that Frasers Hospitality Trust (FHT SP) has assets in have their borders already opened. 
  • The full impact of the reopening will only be seen in the subsequent quarters thus it is almost certain that next quarter’s result will be better than the past one.
  • The upside from privatization is mostly priced in but the recovery of the business is real albeit potentially gradual. 

Smartkarma Corporate Webinar | Hyphens Pharma: Deepening Presence in ASEAN

By Smartkarma Research

For our next Corporate Webinar, we are glad to welcome Hyphens Pharma International (HYP SP) Chairman and CEO, Mr. Lim See Wah.

In the upcoming webinar, Mr Lim will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Analyst Tina Banerjee. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 7 June 2022, 17:00 SGT.

Hyphens Pharma International Limited and its subsidiaries (the “Group”) is Singapore’s leading specialty pharmaceutical and consumer healthcare group, leveraging on its diverse footprint in ASEAN countries. The Group has a direct presence in Singapore, Vietnam, Malaysia, Indonesia, and the Philippines, and is supplemented by a marketing and distribution network covering 10 other markets – Bangladesh, Brunei, Cambodia, China, Hong Kong S.A.R., Macau S.A.R., Myanmar, Oman, South Korea, and Sri Lanka.

Singapore is the Group’s regional headquarters, where its strategic planning, finance, regulatory affairs, research and development, legal, business development, and logistics operations are based. The Group’s core business comprises the following segments: Specialty Pharma Principals, Proprietary Brands, and Medical Hypermart & Digital. Besides marketing and selling a range of specialty pharmaceutical products in selected ASEAN countries through exclusive distributorship or licensing and supply agreements with brand principals mainly from Europe and the United States, the Group also develops, markets, and sells its own proprietary range of dermatological products and health supplement products. In addition, the Group operates a medical hypermart for healthcare professionals, healthcare institutions and retail pharmacies, to supply pharmaceutical products and medical supplies and an online e-pharmacy for doctors to prescribe and have medications delivered to their patients’ homes.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.


Before it’s here, it’s on Smartkarma

Singapore: Grab and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Grab 1Q2022: On a Path to Recovery but Still Has a Long Way To Go

Grab 1Q2022: On a Path to Recovery but Still Has a Long Way To Go

By Shifara Samsudeen, ACMA, CGMA

  • Grab (GRAB US) reported 1Q2022 results. IFRS revenue increased 6% YoY to $228m (vs consensus $142m) and negative adjusted EBITDA of $287m ( consensus $291m) compared to $111m in 1Q2021.
  • The company’s deliveries biz saw a strong recovery in revenues post disappointing performance in 4Q2021 and the acquisition of Jaya Grocers partially contributed to this growth.
  • Grab’s Mobilities biz has not yet recovered to pre-pandemic levels due to Omicron-related restrictions in the first two months of the quarter, but set to benefit from recovery in travel.

Before it’s here, it’s on Smartkarma

Singapore: Sea Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Sea Ltd (SE US) – Reading the Positive Signals
  • Sea Ltd: In Rough Seas

Sea Ltd (SE US) – Reading the Positive Signals

By Angus Mackintosh

  • Sea Ltd released a solid set of 1Q2022 results, with very strong YoY growth in e-commerce GAAP revenues, and a predictable softening of gaming revenues given greater mobility in 1Q2022. 
  • A key highlight was improving profitability with the adjusted EBITDA loss per order falling 70% in South-East Asia and Taiwan. Management also signalled that gaming revenues started stabilising end 1Q2022.
  • Sea Ltd (SE US) saw a strong rally post these results given guidance was maintained albeit with a wider range. Sea Ltd is now trading at a discount to peers.

Sea Ltd: In Rough Seas

By Oshadhi Kumarasiri

  • Sea’s share price rose 14% yesterday after beating consensus revenue by 1.4%, but this seems unwarranted as Sea lowered the lower-end of the e-commerce revenue guidance by $400m to $8.5bn.
  • Nonetheless, most of this price reaction could be short covering as Sea Ltd (SE US)’s results were rather disappointing on multiple fronts.
  • With Free Fire faltering fast, we think Sea could get washed back to rough seas before reaching calm waters.  

Before it’s here, it’s on Smartkarma

Singapore: Hwa Hong Corp and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Hwa Hong’s Conditional Offer Amid Family Tussle
  • Hwa Hong’s Voluntary Conditional Offer at S$0.370

Hwa Hong’s Conditional Offer Amid Family Tussle

By David Blennerhassett

  • Ong Choo Eng and his son Ong Eng Yaw, together with Roswell Assets, Dymon Asia Private Equity, and Crytalic Star have launched a voluntary Offer for Hwa Hong (HWAH SP).
  • The S$0.37/share Offer is a nine-year high and a 27.6% premium to last close. It has not been declared final. 
  • However, it appears not all of the founding members of the company are on the same page. The family fissure became public after the last independent director resigned this month. 

Hwa Hong’s Voluntary Conditional Offer at S$0.370

By Arun George

  • Hwa Hong Corp (HWAH SP) announced a voluntary conditional cash offer from Mr Ong Choo and partners at S$0.370 per share, a 27.6% premium to the last close.
  • The offer is the culmination of a brewing family feud which pits Mr Ong Choo against the families of his five brothers. 
  • The offer price is a 9-year share price high. We estimate around 60% of the public float needs to accept the offer to meet the 50%+ minimum acceptance condition. 

Before it’s here, it’s on Smartkarma

Singapore: Sea Ltd, EC World Reit, LHN Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Sea Ltd: More Downside Risk at Earnings
  • EC World REIT – One-Off Event Impacted DPU
  • LHN Limited – 1H22 Results In-Line as Coliwoo Picks up the Pace

Sea Ltd: More Downside Risk at Earnings

By Oshadhi Kumarasiri

  • Sea Ltd (SE US) reports 1Q22 results tomorrow and we expect results to follow the overall sector’s trend of weak revenue growth but lower losses.
  • Consensus 1Q22 revenue expectation was lowered in the last three months but there’s still a bit more downside due to Free Fire’s struggles.
  • The biggest risk is the remaining three quarters of 2022 and the next year as consensus revenue seems too bullish with estimates of 42% revenue CAGR through 2021-23.

EC World REIT – One-Off Event Impacted DPU

By SCCM Asia Research

  • 1Q22 DPU below expectation: 1Q22 revenue and NPI rose by 4.4% and 7.4% YoY (0.7% and 3.2% QoQ) to S$32.2m and S$29.7m, respectively, largely due to RMB appreciation and step-up rents.
  • +ve revenue growth across three segments: On a QoQ basis, revenues from all three segments – Port Logistics, Specialized Logistics and E-Commerce Logistics have reported +ve growth, largely due to step-up rents and strengthening RMB.
  • Refinancing completion as a near-term catalyst: Mgmt. believes that it is very close to complete the refinancing exercise of its offshore facilities (~S$423m or 66% of total loans in FY22E), which will expire by end of May22.

LHN Limited – 1H22 Results In-Line as Coliwoo Picks up the Pace

By SCCM Asia Research

  • 1H22 results mixed as revenue slips, but adj. PATMI performs on JV contributions
  • Recent logistics business listing paves the way for increased focus on co-living
  • Maintain BUY with a lower TP of S$0.38/shr. In line with the recent market volatility, our revenue weighted peer-based TP falls to S$0.38/share.

Before it’s here, it’s on Smartkarma

Singapore: Raffles Medical, Thai Beverage and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Raffles Medical (RFMD SP) – Doubts About the Outlook Weigh on Bullish Sentiment
  • ThaiBev BeerCo 2022 Pre-IPO – Peer Comp and Thoughts on Valuation

Raffles Medical (RFMD SP) – Doubts About the Outlook Weigh on Bullish Sentiment

By Xinyao (Criss) Wang

  • The revenue brought by COVID-19 business wouldn’t be sustainable,and would decrease in the future. The lower-than-expected performance of the hospital services is hard to be the main driver for growth.
  • The performance contribution brought by medical tourism would be limited, just partially offset the decline of COVID-19 related revenue. Accordingly, we lowered our forecast on revenue and earnings in FY2022-FY2023.
  • Together with the concerns on China business, we have doubts about RMG’s outlook, which would weigh on bullish sentiment. In such a complicated environment, investors are recommended to play safe.

ThaiBev BeerCo 2022 Pre-IPO – Peer Comp and Thoughts on Valuation

By Sumeet Singh

  • On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
  • We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
  • In this note we undertake a peer comparison and talk about valuations

Before it’s here, it’s on Smartkarma

Singapore: Thai Beverage, Raffles Medical and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Thai Bev: Holdco Discount Narrows as Thai Bev Prepares to Restart the Beer Unit IPO
  • Raffles Medical (RFMD SP): Resilient Business Model; Border Reopening to Further Boost Growth
  • Raffles Medical: Earnings to Remain Under Pressure in 2022 but Long-Term Prospects Remain Attractive
  • ThaiBev BeerCo Pre-IPO – Back for Another Round

Thai Bev: Holdco Discount Narrows as Thai Bev Prepares to Restart the Beer Unit IPO

By Oshadhi Kumarasiri

  • In a regulatory filing last Thursday, Thai Beverage (THBEV SP) said that it had restarted its Beer Unit IPO at a much lower valuation than before.
  • Based on the current NAV discount of 13%, we think this is already priced-in Thai Bev’s share price.
  • Nonetheless, a 13% NAV discount could be too light in our opinion and there could be downside potential to the NAV discount following the completion of the Beer Unit IPO.

Raffles Medical (RFMD SP): Resilient Business Model; Border Reopening to Further Boost Growth

By Tina Banerjee

  • Raffles Medical (RFMD SP) reported 27% y/y revenue growth to S$723.8 million and net profit increase of 30% y/y to S$83.7 million in 2021.
  • Following full border reopening by Singapore beginning April, medical tourism is set to revive. As a leading hospital operator in Singapore, Raffles is well-positioned to grab the opportunity. 
  • Regular share buyback and recent stake increase by a major investor further enhance conviction on the company’s growth potential.

Raffles Medical: Earnings to Remain Under Pressure in 2022 but Long-Term Prospects Remain Attractive

By Shifara Samsudeen, ACMA, CGMA

  • Raffles Medical (RFMD SP) is a private medical provider in Singapore. The company owns and operates a network of medical clinics and hospitals.
  • The company’s earnings saw a boost in 2021 driven by demand for Covid-19 related services such as PCR tests, vaccine administration and operation of Cov-19 treatment facilities.
  • With Singapore reopening borders post Covid, we expect foreign patient volume to see a recovery, however, lower revenue from Covid related services would negatively impact earnings in 2022.

ThaiBev BeerCo Pre-IPO – Back for Another Round

By Sumeet Singh

  • On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
  • We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
  • In this note, we talk about the recent updates for BeerCo.

Before it’s here, it’s on Smartkarma

Singapore: AEM and more

By | Daily Briefs, Singapore

In today’s briefing:

  • AEM: Increased FY22 Revenue Guidance; Riding on Intel’s Capex Binge into Multi-Year Ramp

AEM: Increased FY22 Revenue Guidance; Riding on Intel’s Capex Binge into Multi-Year Ramp

By Nicolas Van Broekhoven

  • AEM reported strong 1Q22 results (+226% YoY) and raised its FY22 revenue guidance to 700-750M SGD. AEM management continues to believe they are in a multi-year ramp-up. 
  • While the US tech sector is imploding left and right AEM is a very specific story linked to Intel’s CAPEX binge. Expect momentum to remain in FY22 and into FY23.
  • Fair Value of 8 SGD remains unchanged (based on 20x 0.40 FY22 EPS), or 62% upside from the current 4.92 SGD share price.

Before it’s here, it’s on Smartkarma

Singapore: Rex International Holding and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Rex: Show Me the Incentives and I Will Show You the Outcome

Rex: Show Me the Incentives and I Will Show You the Outcome

By Nicolas Van Broekhoven

  • Last month a new options program was announced, board members have two milestones to meet by 8/4/2024: get the stock over 0.45 SGD (50% vesting) & 0.60 SGD (50% vesting)
  • Rex’s production in Oman has disappointed but AGM commentary makes us believe the worst is now behind us. A recent Straits Times interview confirms 20K BPD remains the LT target.
  • Rex has instituted a good dividend policy and should now max out its 10% annual buyback authorization before dividends are paid later in FY22; win-win situation for shareholders and board.

Before it’s here, it’s on Smartkarma