To The Moon

As of the close on Friday,  $Straits Times Index(STI.SI)$ closed at 3,336.59 points, up 0.60% points last week.

During the last 5 trading days, $YZJ Shipbldg SGD(BS6.SI)$, $Sri Trang Agro(NC2.SI)$, $Seatrium Ltd(5E2.SI)$, $NIO Inc.(NIO.SI)$ and $SATS LTD.(S58.SI)$ are the top 5 weekly gainers, up 20.00%, 17.78%, 14.29%, 10.14% and 9.02% respectively.

$TJ DaRenTang USD(T14.SI)$, $Siam Cement TH SDR(TSCD.SI)$, $CityDev(C09.SI)$, $Shangri-La HKD(S07.SI)$ and $Top Glove(BVA.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $YZJ Shipbldg SGD(BS6.SI)$

• As of 24 May, the order book for maritime vessel maker Yangzijiang Shipbuilding has reached a record value of US$16.1 billion.

• In a quarterly business update on Monday, 27 May, the mainboard-listed shipbuilder announced that it now has 193 vessels in its backlog, set to be delivered by 2028, with a total compensated gross tonnage of 7.45 million.

• Container ships represent the largest segment with 66 vessels valued at US$9.3 billion, followed by oil tankers with 58 vessels worth US$2.8 billion, bulk carriers with 47 vessels valued at US$1.9 billion, and gas and ethane carriers with 22 vessels worth US$2.1 billion.

• Regarding the target price, CGS International has adjusted Yangzijiang Shipbuilding Holdings' price target from S$1.96 to S$2.35, maintaining an "Add" rating. Additionally, Citi Research has raised the target price for Yangzijiang Shipbuilding from S$1.84 to S$2.45.

2. $Sri Trang Agro(NC2.SI)$

• Sri Trang Agro-Industry Public Company Limited is a fully integrated natural rubber company. It provides a variety of natural rubber products to meet the diverse needs of its customers, including technically specified rubber (TSR), ribbed smoked sheets (RSS), and concentrated latex. The company has a production capacity of approximately 3.18 million tons per year.

• In its earnings presentation on Wednesday, Sri Trang Agro-Industry reported a net loss of THB 329.7 million for Q1, a stark contrast to the profit of THB 287.9 million in the same period last year. The company's total revenue decreased by 3% year over year, falling to THB 23.68 billion from THB 24.43 billion.

• The company continues to maintain its dividend, recently confirming a total payout of THB 1.54 billion. With a forecasted return to profitability within three years, the company's annual revenue growth of 14.2% is expected to exceed Thailand's market average of 6.6%.

3. $Seatrium Ltd(5E2.SI)$

• Offshore and marine specialist Seatrium has secured S$11 billion in contracts to build two new floating production storage and offloading vessels (FPSOs) for Brazil’s national oil company, Petrobras.

• Named P-84 and P-85, these FPSOs will be deployed in the Atapu and Sepia fields in the Santos Basin, offshore from the Brazilian city of Rio de Janeiro, as announced by Seatrium in a bourse filing on Saturday, May 25.

• Construction will begin in the first quarter of 2025, with final delivery expected in 2029. Seatrium’s facilities in Brazil, China, and Singapore will produce 60,000 tonnes of modules for the FPSOs, with integration and commissioning to take place in Singapore.

• In terms of the target price, UOB Kay Hian has raised Seatrium's target price from S$3.02 to S$3.23. Additionally, Citi has adjusted Seatrium's price target from S$1.96 to S$2.16, maintaining a "Buy" rating.

4. $NIO Inc.(NIO.SI)$

• Nio's shares surged significantly in Singapore amid expectations that the Chinese electric vehicle manufacturer would achieve a record-high number of deliveries in May. Analysts anticipate that Nio could surpass 20,000 vehicle units in May, surpassing the previous monthly sales record of 20,462 units set in July last year.

• The robust sales performance is attributed to ongoing discounts on car prices and batteries, as noted by BOCOM International auto analyst Angus Chan.

• In addition, Nio has announced that its Energy Investment Unit has received a strategic investment of CNY 1.5 billion from external investors. The proceeds from this investment will be allocated towards technology research and development, particularly in areas such as charging infrastructure, battery swapping technology, energy storage solutions, and other related fields.

5. $SATS LTD.(S58.SI)$

• SATS shares experienced an increase this week following the release of their financial results, which showed a significant rise in net profit. This growth was attributed to the recovery of the aviation sector and SATS's acquisition of Worldwide Flight Services, a global air cargo logistics provider.

• According to an investor presentation released on Wednesday, SATS aims to achieve revenue exceeding S$8 billion by 2028, with a compound annual growth rate of more than 6%.

• "We've started fulfilling our goals of restoring profitability, optimizing capital structure, and boosting free cash flow in FY24," stated Chief Executive Kerry Mok. "We remain committed to working tirelessly, globally, to leverage further synergies from the ongoing SATS-WFS integration, streamline our portfolio, and decrease debt," he emphasized.

• According to DBS Group Research analysts, SATS's fourth-quarter results exceeded consensus expectations, with net profit increasing from the previous quarter despite a seasonally slower period that saw sequential revenue decline. DBS maintains a buy rating on the stock, setting a target price of S$3.40.