As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,261.83 points, down 3.54% points last week.
During the last 5 trading days, $HongkongLand USD(H78.SI)$, $Cromwell Reit SGD(CWCU.SI)$, $AIS TH SDR(TADD.SI)$, $Emperador Inc.(EMI.SI)$ and $JMH USD(J36.SI)$ are the top 5 weekly gainers, up 3.09%, 2.97%, 2.84%, 1.18% and 1.17% respectively.
$Top Glove(BVA.SI)$, $Lendlease Reit(JYEU.SI)$, $Venture(V03.SI)$, $NIO Inc.(NIO.SI)$ and $Seatrium Ltd(5E2.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $HongkongLand USD(H78.SI)$
After releasing its earnings report the previous week, HongKong Land's stock price defied the broader market trend and rose by approximately 3% over the week.
According to a filing with the Singapore Exchange, HongKong Land reported that its attributable loss to shareholders for the first half of the year widened to US$833 million, compared to US$333 million in the same period last year.
HongKong Land will trade ex-dividend on August 22, 2024. Shareholders of record on August 23, 2024, will receive a dividend of US$0.06 per share on October 16, 2024.
From an industry perspective, Singapore's luxury condominium market rebounded in the second quarter as ultra-high-net-worth individuals returned, according to a report by The Straits Times last Wednesday. Sales of non-landed homes priced at SG$5 million or more increased by 7.5% from the first quarter to 57 units, although this was still 9.5% lower YoY.
2. $Cromwell Reit SGD(CWCU.SI)$
Paul Chew, head of research at Phillip Securities Research, stated in a note that Singapore REITs have become more attractive investment options. He explained that the challenges REITs face from higher interest rates and the unwinding of hedges are expected to mostly subside by the end of this year. As a result, REITs may see their rental growth start to outpace interest expenses. Chew also mentioned that the Fed's first rate cut will likely indicate that interest rates have peaked, providing clarity for real estate investors and potentially leading to increased transaction activity.
Cromwell European REIT reported a like-for-like net property income of EUR 64.67 million for the first half of the year, compared to EUR 63.18 million in the same period last year. The REIT's distribution per unit (DPU) for the first half was 7.050 Euro cents, down from 7.790 Euro cents.
The CEO of Cromwell European REIT's Manager attributed the decline in DPU primarily to the impact of asset sales and higher interest costs. The CEO also noted that they plan to take advantage of opportunities over the next 12 months.
3. $AIS TH SDR(TADD.SI)$
Advanced Info Service (AIS) reported its second-quarter 2024 earnings last week, leading to a positive stock price performance. The Thai operator posted revenue of THB 51.33 billion for Q2 2024, marking a 15% YoY increase. However, compared to the first quarter of 2024, total revenue declined by 3.7%, mainly due to seasonal factors affecting device sales.
Mobile revenue rose to THB 30.77 billion, a 4.3% YoY increase, driven by improvements in ARPU from package restructuring aimed at profitability and enhanced value-added services in response to growing digital demand. Fixed broadband revenue surged to THB 7.28 billion, up 155% YoY and 2.3% quarter-on-quarter, due to higher ARPU from new subscribers, supported by bundled services and upselling of higher-value products.
As of June, AIS reported free cash flow of THB 27.94 billion for the first half of the year. AIS also announced plans to distribute dividends amounting to a minimum of 70% of its net profit.
4. $Emperador Inc.(EMI.SI)$
Emperador, a brandy and whisky group with a secondary listing on the Singapore Exchange and a primary listing on the First Board of the Philippine Stock Exchange, reported earnings of 3.81 billion Philippine pesos for the first half of FY2024, ending June 30. This represents a 19.6% decline YoY. For the second quarter of FY2024, earnings stood at 2.07 billion pesos, down 14.3% YoY. Revenue for the first half of FY2024 fell by 7.9% YoY to 28.64 billion pesos, with declines in both brandy and whisky sales.
Winston Co, president of Emperador, commented that the company's performance is expected to reach new heights once global economies improve and consumer demand for premium and luxury products returns. He also mentioned that the company continues to strategically invest in its business for the future.
DBS economist Chua Han Teng noted that Singapore's retail sales ended the second quarter weak, but momentum may improve in the second half. June's 0.6% YoY decline likely stemmed from increased outbound travel during school holidays. Chua expects retail sales to benefit from the return of Chinese tourists in July and August, with further support from the September Formula 1 event and improved labor market conditions.
5. $JMH USD(J36.SI)$
Citi Research analysts George Choi and Ryan Cheung upgraded their rating on Hong Kong-based conglomerate Jardine Matheson Holdings from "neutral" to "buy," maintaining a target price of US$40.50. This follows the group's 1HFY2024 net profit of US$550 million, which marked a 33% decline YoY.
Choi and Cheung noted that without the US$255 million impairment charge related to Hongkong Land, the net profit during the period would have been down 14% YoY. This contrasts with the analysts' forecast of a 5% YoY earnings growth for FY2023. They attributed the decline to several factors: reduced contributions from Zhongsheng due to increased competition from domestically produced electric vehicles in China, a 6% YoY profit drop at Astra caused by lower commodity prices, and challenges faced by other businesses amid tough market conditions.
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