Weekly | Why Sri Trang Agro Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,352.89 points, up 2.79% points last week.

During the last 5 trading days, $Sri Trang Agro(NC2.SI)$, $ST Engineering(S63.SI)$, $DFIRG USD(D01.SI)$, $DBS Group Holdings(D05.SI)$ and $CapLand India T(CY6U.SI)$ are the top 5 weekly gainers, up 14.71%, 8.06%, 7.95%, 7.61% and 6.73% respectively.

$CityDev(C09.SI)$, $Bumitama Agri(P8Z.SI)$, $ThaiBev(Y92.SI)$, $AIS TH SDR(TADD.SI)$ and $TJ DaRenTang USD(T14.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $Sri Trang Agro(NC2.SI)$

• Sri Trang Agro released its second-quarter financial results last week, which led to a continuous rise in its stock price, culminating in a weekly gain of 14.71%.

• The company reported a net profit of 628.4 million baht (S$23.6 million) for the three months ending June 30, 2024, marking a significant increase of 471.3% compared to the 110 million baht achieved in the same period last year.

• The company's second-quarter revenue saw a 21.6% increase, reaching 25.8 billion baht, up from 21.2 billion baht in the second quarter of the previous fiscal year.

• Furthermore, earnings per share climbed to 0.41 baht, compared to 0.07 baht in Q2 FY2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed substantial growth, rising 77.1% to 2.2 billion baht in Q2 FY2024, from 1.2 billion baht in the corresponding period of the previous year.

2. $ST Engineering(S63.SI)$

• Singapore Technologies Engineering Ltd released its latest half-year financial results last week, which led to a rise in its stock price. The company will go ex-dividend on August 22, 2024, with a dividend of 0.04 SGD per share. The record date for the dividend entitlement is August 23, 2024, while the ex-dividend date is August 22, 2024, and the payment date is scheduled for September 5, 2024.

• According to a research report by DBS Group Research analyst Jason Sum, Singapore Technologies Engineering's record order backlog of S$27.9 billion as of June enhances the company's earnings visibility.

• Regarding target prices:

1. - Singapore Technologies Engineering has an average rating of "Buy" with price targets ranging from S$4.24 to S$5.20, according to analysts polled by Capital IQ.

2. - DBS Group Research has raised the target price for Singapore Technologies Engineering to S$5.00 from S$4.80.

3. - OCBC Investment Research has increased its fair value estimate for Singapore Technologies Engineering to S$4.83 from S$4.60.

3. $DFIRG USD(D01.SI)$

• DFI recently released its latest half-year financial results, reporting an underlying group profit attributable to shareholders of US$76 million, up from US$33 million in the previous year. Additionally, the company will go ex-dividend on August 22, 2024, with a dividend of 0.035 USD per share.

• Last week, DFI Retail Group (DFI) published its Sustainability Report 2023, which highlights the group's ongoing commitment to environmental sustainability and community service.

• According to an analysis by SimplyWall.st, there is some ambivalence regarding DFI Retail Group Holdings' performance. While the company enjoys a high rate of return, its low earnings retention might be hindering its earnings growth.

4. $DBS Group Holdings(D05.SI)$

• Supported by an increase in their net interest income (NII), Singapore's banks posted strong earnings in the second quarter of the year, according to a report by Singapore Business Review on Monday, which cited UOB-Kay Hian. DBS recorded the highest NII growth at 4.7% year over year, as noted by UOBKH analyst Jonathan Koh.

• DBS Group Holdings Ltd has recently been upgraded to a Zacks Rank #1 (Strong Buy). This upgrade reflects a positive trend in earnings estimates, which is one of the most influential factors affecting stock prices.

• Additionally, DBS has introduced DBS Treasury Tokens, a blockchain-powered treasury and liquidity management solution, in collaboration with Ant International. With these tokens, Ant International can manage its multi-currency treasury and liquidity instantly on DBS’s permissioned blockchain for its entities across various markets.

5. $CapLand India T(CY6U.SI)$

• By industry standards, July marked the second-highest monthly sales in 2024. Developers' sales more than doubled to 571 units in July, as reported by the Urban Redevelopment Authority (URA).

• CapitaLand India Trust has announced the issuance of over 1.85 million new units to its Trustee-Manager, CLINTMPL, as partial payment for the management base fee for the second quarter of 2024. Half of the fee was settled through these new units, each priced at S$1.0111, with the remainder paid in cash. This transaction has increased CLINTMPL’s total holdings to approximately 97.33 million units.