Weekly | Why HPH Trust Lead the Market this Week?

SGX_Stars
12-20 19:13

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,719.93 points, down 2.37% points last week.

During the last 5 trading days, $HPH Trust SGD(P7VU.SI)$, $Frasers HTrust(ACV.SI)$, $Riverstone(AP4.SI)$, $Tencent HK SDR 10to1(HTCD.SI)$ and $TJ DaRenTang USD(T14.SI)$ are the top 5 weekly gainers, up 12.20%, , 5.00%, 4.81%, 4.35% and 3.81% respectively.

$CP All NVDR(TCPD.SI)$, $Golden Agri-Res(E5H.SI)$, $JMH USD(J36.SI)$, $Top Glove(BVA.SI)$ and $Sri Trang Agro(NC2.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $HPH Trust SGD(P7VU.SI)$

  • Improved Earnings Performance: Investors might be optimistic about HPH Trust's earnings growth, which can drive up the stock price.

  • Attractive Dividend Yield: As of December 18, 2024, HPH Trust offers a forward dividend yield of 11.57%, which is appealing to income-focused investors.

  • Market Sentiment: Positive market sentiment and increased investor confidence in the port and shipping industry could also be contributing to the stock's rise.

2. $Frasers HTrust(ACV.SI)$

  • Improved Financial Performance: In the second half of the fiscal year 2024, Frasers Hospitality Trust reported a distribution per stapled security (DPS) of 1.1682 cents, which is only a 0.8% decrease year-over-year.

  • Attractive Valuation: As of December 20, 2024, the relative valuation of Frasers Hospitality Trust is 0.21 SGD, based on P/E multiples. With the latest stock price at 0.50 SGD, this suggests a potential upside, making the stock appealing to value investors.

  • Positive Market Sentiment: The hospitality sector has been showing signs of recovery, leading to increased investor confidence in hospitality trusts like Frasers.

3. $Riverstone(AP4.SI)$

  • Industry Recovery: The company is expected to benefit from the ongoing recovery in the consumer electronics and cleanroom glove industries. Management has indicated that demand for cleanroom gloves is likely to continue its rebound in 2024, driven by the semiconductor industry's recovery. Additionally, Riverstone is upgrading production lines to produce higher-margin customized gloves, positioning the company to capture increased demand in specialized markets.

  • Attractive Valuation: Analyses suggest that Riverstone Holdings may be undervalued. For instance, one assessment indicates that the company's intrinsic value is at a 48% discount to the current share price, implying potential upside for investors.

  • Dividend Appeal: The company has a history of paying dividends, with a trailing yield of 6.2% based on the current stock price. This dividend yield may attract income-focused investors, contributing to increased demand for the stock.

  • Positive Financial Indicators: Riverstone Holdings has demonstrated strong financial performance, with earnings per share growing at an annual rate of 17% over the past five years. This growth, coupled with a high return on equity, reflects the company's efficient use of profits and may boost investor confidence.

4. $Tencent HK SDR 10to1(HTCD.SI)$

  • Strategic Discussions with Apple: Reports indicate that Apple is in early talks with Chinese tech firms, including Tencent, to integrate their AI models into iPhones for the Chinese market. This development has positively impacted Tencent's stock, reflecting investor optimism about potential collaborations.

  • Robust Financial Performance: Tencent's recent financial results have been strong, with an 8% increase in third-quarter revenue, driven largely by a rebound in its gaming segment. Domestic gaming revenue increased by 14% to 37.3 billion yuan, with international gaming revenue up 9% to 14.5 billion yuan.

  • Positive Market Sentiment Towards Chinese Assets: There is growing optimism around Chinese assets, driven by expectations of major fiscal stimulus measures. This sentiment has spilled over into markets like Hong Kong and Singapore, benefiting companies like Tencent.

  • Gaming Sector Growth: Tencent's gaming division has shown significant growth, with domestic game revenue soaring by 14% year-on-year, driven by popular titles like "Dungeon & Fighter Mobile" and "Valorant." This robust performance has contributed to a one-third increase in quarterly adjusted earnings, totaling $8 billion.

5. $TJ DaRenTang USD(T14.SI)$

  • Recent Financial Performance: In the third quarter of the fiscal year 2024, the company reported earnings of RMB146.14 million (approximately $27.1 million), marking an 8% increase year-over-year.

  • Strategic Divestment: The company approved the sale of a 13% stake in Tianjin TSKF Pharma, which led to a 10% surge in its share price at the time of the announcement.

  • Leadership Changes: On November 26, 2024, the company announced the resignation of Chairman Zhang Mingrui, with Wang Lei appointed as the new Chairman. Such leadership transitions can influence investor sentiment and impact stock performance.


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