Weekly | Why SingPost Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,562.65 points, up 3.13% points last week.

During the last 5 trading days, $SingPost(S08.SI)$, $NIO Inc.(NIO.SI)$, $Sinarmas Land(A26.SI)$, $Kasikorn Bank TH SDR(TKKD.SI)$ and $SEMBCORP INDUSTRIES LTD(U96.SI)$ are the top 5 weekly gainers, up 8.05%, 7.55%, 6.38%, 6.36% and 6.17% respectively.

$t PTTEP TH SDR(TPED.SI)$, $TCIL HK$(T15.SI)$, $Shangri-La HKD(S07.SI)$, $YZJ Fin Hldg(YF8.SI)$ and $AIS TH SDR(TADD.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $SingPost(S08.SI)$

• Last week, Singapore Post Limited, a leading postal and eCommerce logistics provider in the Asia Pacific region, and Cainiao, a global leader in e-commerce logistics, signed a Memorandum of Understanding (MOU) to explore strategic collaborations aimed at fostering the long-term growth of Singapore's cargo and logistics sectors. This collaboration is set to enhance both organizations' logistics networks to capture the expanding eCommerce market in Southeast Asia.

• Recent reports indicate that the courier, express, and parcel (CEP) market is projected to grow at a compound annual growth rate (CAGR) of 7.99% over the forecast period. The market, valued at US$563.751 billion in 2024, is expected to reach US$827.984 billion by 2029.

2. $NIO Inc.(NIO.SI)$

• Nio continued its upward momentum following its earnings report over the past few trading days. Dongwu Securities commented on Nio's Q2 financial results, noting that the company's performance slightly exceeded expectations. Considering the company's comprehensive layout of core technologies and its barrier-building through targeted marketing, the firm has maintained a "Buy" rating on the stock.

• According to the Wall Street Journal, China's electric vehicle (EV) industry is projected to see stronger earnings in the second half of the year, driven by the government’s trade-in policy and lower costs, as stated by Daiwa analysts Kelvin Lau and Louis Luo. They believe that the improved operating margins for major Chinese auto manufacturers in the first half of the year were due to cost reductions, increased market share of EVs and hybrids, and stronger export performance. Daiwa recommends BYD for its cost advantages and as the primary beneficiary of replacement demand. They also support Great Wall Motor for its robust export profitability and suggest that investors should monitor NIO and XPeng for their upcoming product launches.

• Regarding price targets, Morgan Stanley analyst Tim Hsiao recently maintained a Buy rating on Nio with a target price of US$6.10.

3. $Sinarmas Land(A26.SI)$

• 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.

• In an effort to build a skilled workforce for the industry, Sinar Mas Land, through Karawang International Industrial City (KIIC), has collaborated with Yayasan Perguruan Cikini to support the government's initiative by establishing a vocational school named SMK Perguruan Cikini-KIIC.

• Moreover, addressing the demand for nature-inspired living spaces, Sinar Mas Land has launched Belova Classic, the latest cluster in the Terravia area of BSD City, with the concept “Back to Nature, Enriching Future.” This residential development is designed with an open space concept to maximize air circulation and natural light within the homes, while also providing open areas for residents to enjoy the surrounding natural beauty.

4. $Kasikorn Bank TH SDR(TKKD.SI)$

• Last week, the Southeast Asian market followed the global trend upward. Data shows that overseas funds have flowed into the Southeast Asian market for the fifth consecutive week, and the MSCI ASEAN Index is nearing its highest level since April 2022.

• According to the official website, the Kasikorn Bank was established on June 8, 1945. By December 31, 1945, the end of its first accounting period, the Bank had recorded total deposits of 12 million Baht and assets of 15 million Baht.

• Recently, the Kasikorn Bank website disclosed that at its Board of Directors meeting No. 8/2024, held on August 29, 2024, the board approved the establishment of a joint venture between KASIKORN VISION (KVISION), a subsidiary of KASIKORNBANK FINANCIAL CONGLOMERATE, and Bangkok Commercial Asset Management PCL (BAM). The joint venture will focus on managing non-performing assets in accordance with the laws and criteria set by the Bank of Thailand.

5. $SEMBCORP INDUSTRIES LTD(U96.SI)$

• Sembcorp Industries is an energy and urban solutions provider with a balanced energy portfolio of 21.2 GW, which includes 14.4 GW of gross renewable energy capacity, spanning across 10 countries.

• According to reports, Sembcorp Industries is in discussions through its subsidiary, Sembcorp Green Hydrogen India, to establish a joint venture with Bharat Petroleum Corporation Limited. This venture will focus on renewable energy and green hydrogen projects to advance India's energy transition efforts. The collaboration is in line with Sembcorp’s role as a leading renewable energy player in Asia, aiming to support India’s long-term energy development and decarbonization goals.