Automobile Weekly: EV companies’ sales up 111% yoy and 38% mom in February, in line with estimates. Maintain UNDERWEIGHT. Top picks: BYD, CATL and Zhongsheng. Results Budweiser APAC (1876 HK/BUY/HK$24.65/Target: HK$29.00) 4Q22: Below expectations; having an edge from channel reopening. INDONESIA Strategy Alpha Picks: Portfolio Overhaul After Gains in Feb 23 Our picks: HMSP, ROTI, BBYB, BMRI, BUKA, SMGR, EXCL, KLBF and MAPI. Results Astra International (ASII IJ/HOLD/Rp6,150/Target: Rp6,600) 2022: Net profit up 43.3% yoy; in line with expectations.
UNITED OVERSEAS BANK LTD (UOB SP)Fair Value : SGD 36.50FY21 RESULTS BEAT.• FY21 net profit of SGD4.08bn grew 40% yoy.• Confident of maintaining 50% dividend payout ratio, given healthy balance sheet and recovery of regional economies expected.• New sustainable financing goal of SGD30bn by 2025, following prior target achieved two years ahead.• Fair value is raised to SGD36.50. Since our “Buy” reiteration this year, the share price has gained ~21%, outperforming the sector, underscoring our prior recommendations to add positions.
DBS GROUP HOLDINGS LTD (DBS SP)Recommendation : HOLDFair Value : SGD 40.004Q21 DIVIDENDS RAISED.• FY2021 net profit of SGD6.8bn grew 44% yoy, reflecting continued recovery in business momentum.• 4Q21 quarterly dividend per share was increased 9% to 36 cents, surprising positively and signaling management confidence in the bank’s growth outlook.• 2022 guidance reflects a constructive outlook ahead, driven by mid to high single-digit loan growth, double-digit fee income growth and improvement in NIMs, which should help mitigate higher expense and potential uptick in credit risks amid a rising rate and inflationary environment.
FAANGM declined 7.7% while the S&P 500 fell 5.9% in January.AMZN and NFLX were the laggards, slumping 12.2% and 28.3% respectively.We remain OVERWEIGHT on FAANGM. We raised our target prices for Apple, Microsoft and Alphabet after better-than-expected earnings. We modestly trimmed Amazon’s target price as sales slow after a pandemic-induced surge, but remain positive and see easing labour costs as the next share price catalyst. Meta and Netflix, however, face growth headwinds from increasing competition in their respective industries. We have cut their target prices, but they remain a buy after their sharp share price corrections.