To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,189.88 points, up 0.5% points last week.

During the last 5 trading days, $AEM HOLDINGS LTD(AWX.SI)$, $CapLand India T(CY6U.SI)$, $MANDARIN ORIENTAL INTL LTD(M04.SI)$, $CP All NVDR(TCPD.SI)$ and $Seatrium(S51.SI)$ are the top 5 weekly gainers, up 7.19%, 5.85%, 5.26%, 4.60% and 4.41% respectively.

$OUE COMMERCIAL REIT(TS0U.SI)$, $THE HOUR GLASS LIMITED(AGS.SI)$, $FRASERS PROPERTY LIMITED(TQ5.SI)$, $SHANGRI-LA ASIA LIMITED(S07.SI)$ 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. $AEM HOLDINGS LTD(AWX.SI)$

• The company reported a net profit of S$19.7 million for the first half of its 2023 financial year, a 76% drop from S$82.8 million a year prior. However, this was better than analysts’ expectations, and the company maintained its full-year revenue guidance of S$500 million to S$550 million.

• The company also announced that it has secured a new customer in the AI cloud space, which could provide a long-term growth opportunity for its test solutions1. The company said it expects to start shipping its test handlers to this customer in the second half of 2023.

• Analysts have upgraded their ratings and target prices for the company, citing its role in the testing space, its diversified customer base, and its potential to benefit from the recovery of the semiconductor industry. UOB Kay Hian and Maybank Research upgraded AEM to “buy”, while CGS-CIMB maintained its “add” rating.

• The company’s share price also followed the positive trend of the global semiconductor sector, which has been boosted by strong demand for chips amid supply shortages and technological innovations. Nvidia Corp, one of AEM’s key customers, reported strong earnings and sales forecast for its second quarter, which lifted its stock price to a record high.

2. $CapLand India T(CY6U.SI)$

• The company announced a distribution per unit (DPU) of S$0.0336 for its first half ended June 30, 2023, which represents a yield of 6.6% based on the closing price of S$1.02 on July 30. This was higher than the DPU of S$0.0319 for the same period last year.

• The company also reported a net property income (NPI) of S$67.1 million for the first half of 2023, a 10% increase from S$61 million a year ago. This was mainly due to higher rental income from existing properties and contributions from new acquisitions.

• Analysts have maintained their positive outlook on the company, citing its strong portfolio of business parks and IT parks in India, its exposure to the fast-growing technology sector, and its potential to benefit from the recovery of the Indian economy. DBS Research reiterated its “buy” call on the company, with an unchanged target price of S$1.45.

• The company’s share price also followed the upward trend of the global real estate sector, which has been supported by low interest rates, high demand for quality assets, and increased investor confidence. The FTSE EPRA Nareit Global Real Estate Index, which tracks the performance of listed real estate companies and REITs worldwide, rose by 2.4% in the past week.

3. $MANDARIN ORIENTAL INTL LTD(M04.SI)$

• The company announced a distribution per unit (DPU) of US$0.015 for its first half ended June 30, 2023, which represents a yield of 1.8% based on the closing price of US$1.71 on August 22. This was higher than the DPU of US$0.01 for the same period last year.

• The company also reported a net profit of US$19.7 million for the first half of its 2023 financial year, a 76% drop from US$82.8 million a year prior. However, this was better than analysts’ expectations, and the company maintained its full-year revenue guidance of US$500 million to US$550 million.

• Analysts have upgraded their ratings and target prices for the company, citing its role in the luxury hotel and resort sector, its diversified geographic presence, and its potential to benefit from the recovery of the travel and tourism industry. UOB Kay Hian and Maybank Research upgraded M04 to “buy”, while CGS-CIMB maintained its “add” rating.

• The company’s share price also followed the upward trend of the global real estate sector, which has been supported by low interest rates, high demand for quality assets, and increased investor confidence. The FTSE EPRA Nareit Global Real Estate Index, which tracks the performance of listed real estate companies and REITs worldwide, rose by 2.4% in the past week.

4. $CP All NVDR(TCPD.SI)$

• The company reported a net profit of 4.12 billion THB for the first quarter of its 2023 financial year, a 19.4% increase from the same period last year. The company also maintained its full-year revenue guidance of 500 billion to 550 billion THB.

• The company’s share price followed the positive trend of the global consumer staples sector, which has been supported by strong demand for essential goods and services amid the COVID-19 pandemic. The company operates 7-Eleven convenience stores and other retail businesses in Thailand and overseas.

• Analysts have maintained their bullish outlook on the company, citing its dominant market position, its resilient business model, and its potential to benefit from the recovery of the Thai economy. DBS Research reiterated its “buy” call on the company, with a target price of 2.70 SGD.

5. $Seatrium(S51.SI)$

• The company reported a 12.6% increase in revenue to S$1.2 billion and a 28.4% growth in net profit to S$76.2 million for the full year ended March 31, 2023. The company also declared a final dividend of 2 cents per share, bringing the total dividend for the year to 3.5 cents per share.

• The company announced that it has secured several new contracts worth S$1.5 billion in total, which will boost its order book to S$14.3 billion as of June 30, 2023. The contracts include engineering, procurement, and construction (EPC) projects in Singapore, Malaysia, Indonesia, and Vietnam.

• Analysts have upgraded their ratings and target prices for the company, citing its strong financial performance, its diversified business segments, and its growth potential in the energy and infrastructure sectors. DBS Research and OCBC Research upgraded S51 to “buy”, while RHB Research maintained its “neutral” rating.

• The company’s share price also followed the positive trend of the global energy sector, which has been supported by rising oil prices, increasing demand for renewable energy, and improving environmental standards. The MSCI World Energy Index, which tracks the performance of companies that provide oil, gas, and other energy-related products and services, rose by 4.5% in the past week.