Weekly | Why Sinarmas Land Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,387.99 points, up 1.05% points last week.

During the last 5 trading days, $Sinarmas Land(A26.SI)$, $Sri Trang Gloves(STG.SI)$, $SATS LTD.(S58.SI)$, $HSBC ADR 10(PU6D.SI)$ and $AIS TH SDR(TADD.SI)$ are the top 5 weekly gainers, up 34.62%, 20.00%, 12.62%, 11.37% and 8.31% respectively.

$StarHub(CC3.SI)$, $TJ DaRenTang USD(T14.SI)$, $YZJ Shipbldg SGD(BS6.SI)$, $Emperador Inc.(EMI.SI)$ and $SINGTEL 10(Z77.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $Sinarmas Land(A26.SI)$

• According to the company's official website, Sinar Mas Land is the largest and most diversified property developer in Indonesia, boasting over 50 years of extensive experience in property development.

• Despite a significant increase in its stock price, SimplyWall.st suggests that Sinar Mas Land may still be signaling strong bullish momentum, given its current P/E ratio of 4.4x. This is notably low, considering that nearly half of all companies in Singapore have P/E ratios exceeding 11x, with some even surpassing 19x.

• In mid-August, the company reported a 28.1 percent rise in revenue for the first half of the year, reaching S$766.1 million, up from S$598.1 million in the previous year. This growth was driven by increased sales of industrial and undeveloped land parcels in BSD City and Kota Deltamas, Indonesia, as well as higher revenue recognition from residential units and industrial buildings.

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

• Sri Trang Gloves Public Company Limited, along with its subsidiaries, manufactures and distributes rubber gloves in various countries including Thailand, Turkey, the United States, China, Germany, Brazil, and Japan.

• Shares of glove manufacturers surged last week after monkeypox (mpox) was declared an international health emergency for the second time on 14th August. Recent reports indicate that Thailand became the first country in Asia to detect the new mutated strain of the mpox virus.

• In mid-August, Sri Trang Gloves showed a notable turnaround, with net income for Q2 2024 reaching THB 378.39 million, up from THB 15.18 million the previous year. The company’s earnings per share also improved to THB 0.13 from THB 0.01 a year earlier.

• The improved earnings come as revenue rose 13.9 percent to THB 5.7 billion over the same period, up from five billion baht the year before.

3. $SATS LTD.(S58.SI)$

• SATS Ltd.'s earnings momentum is likely to be driven by growth in global air-cargo volumes and sustained strength in air passenger traffic, DBS Group Research analyst Jason Sum says in a research report. The global air-cargo market has returned to growth, and SATS's ground handling and in-flight catering businesses should benefit from the global rebound in air travel, the analyst notes.

• SATS's FY 2025 earnings are expected to benefit from air-cargo growth and other tailwinds, according to Nomura analysts in a research report. SATS highlighted that its air-cargo business is expanding organically and anticipates positive momentum in the coming quarters, thanks to the acceleration of e-commerce and the shift to air cargo due to seaport congestion, the analysts added.

• Regarding target prices:

1. SATS Ltd.'s target price has been raised to S$4.10 from S$3.60 by DBS Group Research.

2. SATS has an average rating of outperform and price targets ranging from S$2.31 to S$4.26, according to analysts polled by CapitalIQ.

3. Nomura has also raised SATS Ltd.'s target price to S$4.26 from S$3.50.

4. $HSBC ADR 10(PU6D.SI)$

• HSBC Holdings plc has continued its stock buy-back program, acquiring over 3.4 million shares on August 22, 2024, for cancellation. The purchase prices ranged between £6.5120 and £6.5770 in the UK, and HK$66.2500 and HK$66.7500 in Hong Kong. Since the program's inception on August 1, 2024, HSBC has repurchased 81.6 million shares at a total cost of approximately US$673.6 million. This buy-back will reduce the issued ordinary share capital, thereby enhancing value for the remaining shareholders.

• In addition, HSBC is reportedly exploring the sale of its South African businesses as part of a strategic shift toward focusing on its core Asian markets. According to Bloomberg, this potential sale has attracted interest from regional banks and institutions in China and the United Arab Emirates.

5. $AIS TH SDR(TADD.SI)$

• According to a report on Oracle Innovation, “The strategic collaboration between Oracle and AIS will not only accelerate AIS’s transformation from a ‘Telco to a Techco’ but also unlock the immense potential for digital transformation and AI innovation for all organizations,” said Somchai Lertsutiwong, CEO of AIS. It is reported that AIS Cloud will be deployed in two AIS data centers located in Thailand.

• Notably, last Monday, Advanced Info Service Public Company Limited’s stock price on the U.S. OTC market passed above its fifty-day moving average during trading.