Weekly | Why Delta TH SDR Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,640.19 points, up 1.86% points last week.

During the last 5 trading days, $Delta TH SDR(TDED.SI)$, $Gulf TH SDR(TGED.SI)$, $Sinarmas Land(A26.SI)$, $AIS TH SDR(TADD.SI)$ and $TheHourGlass(AGS.SI)$ are the top 5 weekly gainers, up 11.52%, 7.48%, 7.02%, 6.60% and 5.63% respectively.

$t PTTEP TH SDR(TPED.SI)$, $Advent Technologies Holdings, Inc.(ADN)$, $Yanlord Land(Z25.SI)$, $Siam Cement TH SDR(TSCD.SI)$ and $NIO Inc.(NIO.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $Delta TH SDR(TDED.SI)$

• According to a report from Nikkei Asia, Delta Electronics, the leading provider of power management solutions globally and a supplier for Nvidia, is planning to establish its own energy facilities in India and Thailand as part of its commitment to decarbonizing its worldwide supply chain.

• In addition to being a crucial supplier of power and thermal management systems for Nvidia’s GB200 server systems, the company is also working on advancing hydrogen fuel cell technologies with the goal of commencing mass production by 2026.

• According to Krungsri Securities, the agency has expressed a positive outlook for Thailand’s electronic component exports, which are expected to mirror this growth trend. This data provides a favorable sentiment for Thai electronics stocks, including HANA, KCE, and DELTA. Meanwhile, InnovestX Securities reported that Delta Electronics (Thailand) is expected to see profit growth in the second half of the year, both on a half-on-half and year-on-year basis.

• Additionally, in an interview with TimesTech, Niranjan Nayak, MD of Delta Electronics India, discusses the company’s new Bengaluru headquarters and R&D facility.

2. $Gulf TH SDR(TGED.SI)$

• The stock price of GULF soared by more than 60% over the past three months, following the company’s announcement of a merger with INTUCH to form a new entity, NewCo. Brokers anticipate the value of NewCo will surpass 1 trillion baht.

• Kittiphat Wongmetta, Head of Fundamental Analysis for the Energy and Technology Group at Bualuang Securities, projected that the new company's market value could exceed 1 trillion baht, positioning it as Thailand’s second-largest company by market capitalization, trailing only Delta Electronics (Thailand) Public Company Limited (DELTA), which currently holds a market cap of around 1.5 trillion baht.

• As a result of the surge, GULF’s CEO, Sarath Ratanavadi, saw his net worth rise by approximately US$7 billion in just three months, pushing his total wealth to over US$16 billion, according to the Bloomberg Billionaires Index.

3. $Sinarmas Land(A26.SI)$

• CNBC Indonesia and REPNAS 2024 hosted the REPNAS National Conference & Awarding Night titled "Independent Energy, Self-Reliant Economy" with the theme "Entrepreneurs' Collaboration Towards 8% Economic Growth." Sinarmas Land received the award for Most Excellence Sustainable in Property Design Project.

• Sinar Mas Land reinforced its commitment to modern, eco-friendly urban infrastructure at the Urban Jakarta Festival, Southgate Residence. The company also opened a pedestrian bridge (JPO) for easier access between Tanjung Barat Station and the TransJakarta stop.

• According to a recent article from Simply Wall.st, despite a significant increase in price, Sinarmas Land may still be signaling strong bullish potential with its price-to-earnings (P/E) ratio of 5.2x. This is particularly noteworthy considering that nearly half of all companies in Singapore have P/E ratios exceeding 12x, and P/E ratios above 22x are not uncommon.

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

• Analysts anticipate that the Monetary Policy Committee (MPC) will maintain interest rates at 2.5% during the meeting on October 16. Kasikorn Securities predicts a signal of relaxation that could pave the way for a rate cut in December, which would benefit value stocks. Asia Plus Securities identifies five sectors likely to gain from lower interest rates: hire purchase, small banks, high-dividend real estate, power plant groups, and Advanced Info Service Public Company Limited (AIS).

• Last week, it was reported that AIS continues to advance its network as a Cognitive Tech-Co, demonstrating its success by winning the prestigious "Customer Experience Award" at the FutureNet Asia Awards 2024.

• On 14th October, AIS became the first Thai organization to join the WEEE Forum (Waste Electrical and Electronic Equipment), an international organization that compiles data on electronic waste and includes members from various agencies worldwide. AIS is committed to leading efforts by mobilizing over 220 green partners from both the public and private sectors in Thailand. The aim is to enhance the operations of the HUB OF E-WASTE, a smart electronic waste management center.

5. $TheHourGlass(AGS.SI)$

• The Hour Glass Limited is an investment holding company engaged in the retail and distribution of watches, jewelry, and luxury products across multiple countries, including Singapore,Japan, Australia, and New Zealand, with a market cap of SG$ 1.10 billion.

• According to a recent article from Simply Wall.st, Hour Glass's dividend payments are well-supported by earnings and cash flows, with payout ratios of 33.5% and 46.2%, reflecting financial prudence. However, its dividends have been volatile over the past decade, affecting reliability despite recent growth. The dividend yield of 4.71% is below Singapore's top quartile payers at 5.92%. A recent AGM approved a final dividend of S$0.06 per share for FY2024, alongside ongoing share repurchase activities that enhance shareholder value perception.

• The Hour Glass's recent activities have garnered market attention. From Watches and Wonders to LVMH Watch Week, and Dubai Watch Week to Geneva Watch Days, horology fairs are thriving. Now, The Hour Glass unveils IAMWATCH 2024, a four-day community-centered horology event occurring from 17th October to 20th October.

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