Weekly | NIO Surges on Revenue Growth, Price Cuts, and Easing Inflation

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,260.03 points, up 2.29% points last week.

During the last 5 trading days, $NIO Inc.(NIO.SI)$, $SHANGRI-LA ASIA LIMITED(S07.SI)$, $Sri Trang Gloves(STG.SI)$, $HOTEL PROPERTIES LTD(H15.SI)$ and $COMFORTDELGRO CORPORATION LTD(C52.SI)$ are the top 5 Weekly gainers, up 30.47%, 21.67%, 10.77%, 10.14% and 9.71% respectively.

$TOP GLOVE CORPORATION BHD(BVA.SI)$, $TAN CHONG INT'L LTD(T15.SI)$, $UOB-KAY HIAN HOLDINGS LIMITED(U10.SI)$, $HONGKONG LAND HOLDINGS LIMITED(H78.SI)$ and $Airports of Thailand NVDR(TATD.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $NIO Inc.(NIO.SI)$

• NIO Inc reported its Q1 2023 earnings on June 9, which showed a revenue of 10.68 billion CNY, a 7.73% increase year-over-year, and a net loss of 4.80 billion CNY, a 163.21% increase year-over-year. The earnings per share was -2.51 CNY, which beat the analysts’ expectations by 0.05 CNY.

• NIO Inc announced price cuts for its ES8 and ES6 models in China on June 12, which could boost its sales and competitiveness in the electric vehicle market.

• The US consumer price index rose less than expected in May, easing some inflation fears and boosting the stock market sentiment.

2. $SHANGRI-LA ASIA LIMITED(S07.SI)$

• The company reported its Q1 2023 results on May 14, which showed a revenue of US$417.35 million, a 20.06% increase year-over-year, and a net income of US$-150,000, a 99.87% improvement year-over-year. The company also achieved a positive EBITDA of US$41.76 million, a 211.07% increase year-over-year.

• The company announced a dividend of HK$0.08 per share on April 29, payable on June 30. This could attract more investors who are looking for income from their investments.

• The company could benefit from the gradual recovery of the travel and hospitality industry as more countries ease their Covid-19 restrictions and vaccination rates increase. The company has a strong presence in China, which has largely contained the pandemic and resumed domestic travel.

3. $Sri Trang Gloves(STG.SI)$

2023 Annual General Meeting of Shareholders shows Gloves sales volume Growth by 5.6%, Sales revenue & services depletion by 51%.

Gross profit and gross profit margin decreased in 2022 due to:

The decrease in sales revenue and services.

The decline in ASP across all products of rubber gloves as a result of the intense competition and oversupply situation while sales volume grew by 5.6%.

The slight decrease in the cost of goods sold from the decrease in the price of raw materials of both NR and NBR latex while other costs, chemical, energy, and packaging had increased.

4. $HOTEL PROPERTIES LTD(H15.SI)$

• The company reported its Q1 2023 results on May 14, which showed a revenue of $276.01 million, a 4.48% increase year-over-year, and a net income of $52.22 million, a 1241.97% increase year-over-year. The company also declared a dividend of $0.04 per share, payable on May 231.

• The company could benefit from the gradual recovery of the travel and hospitality industry as more countries ease their Covid-19 restrictions and vaccination rates increase. The company has a diversified portfolio of hotels and resorts in Singapore, Malaysia, Indonesia, Thailand, Maldives, Seychelles, Tanzania, South Africa, Australia and New Zealand.

• The company could also benefit from the positive market sentiment and investor confidence in Singapore, as the Straits Times Index reached its highest level since February 2020 on June 16.

5. $COMFORTDELGRO CORPORATION LTD(C52.SI)$

• The company announced its Q1 2023 results on May 14, which showed a revenue of $960.45 million, a 9.12% increase year-over-year, and a net income of $27.20 million, a 70.00% increase year-over-year. The company also declared a dividend of $0.03 per share, payable on June 30.

• The company could benefit from the gradual recovery of the land transportation industry as more people resume their normal activities and travel plans after the Covid-19 pandemic. The company has a strong presence in Singapore, China, Australia, the United Kingdom and Ireland.

• The company could also benefit from the positive market sentiment and investor confidence in Singapore, as the Straits Times Index reached its highest level since February 2020 on June 16.