To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,330.77 points, down 0.17% points last week.

During the last 5 trading days, $Sri Trang Agro(NC2.SI)$, $Top Glove(BVA.SI)$, $TJ DaRenTang USD(T14.SI)$, $SATS LTD.(S58.SI)$ and $YZJ Shipbldg SGD(BS6.SI)$ are the top 5 weekly gainers, up 8.18%, 6.78%, 6.58%, 6.12% and 5.70% respectively.

$Seatrium Ltd(5E2.SI)$, $Bumitama Agri(P8Z.SI)$, $CapLand India T(CY6U.SI)$, $Airports of Thailand NVDR(TATD.SI)$ 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. $Sri Trang Agro(NC2.SI)$

• Sri Trang Gloves Public Company Limited is a Thailand-based glove manufacturer and fully integrated rubber company. After surging more than 17% in the previous week, Sri Trang Agro continued its upward trend last week, with a cumulative increase of over 8%.

• Last week, the Bank of Canada and the European Central Bank both cut interest rates, further increasing market attention on potential rate cuts by the Federal Reserve and a general shift towards monetary easing. Additionally, rubber-related stocks performed very well in the Singapore market last week. On the news front, rubber-related stocks continue to be boosted by the imposition of higher tariffs by the United States on rubber gloves manufactured in China.

2. $Top Glove(BVA.SI)$

• Rubber glove stocks regained an upward trend this week, with Top Glove rising more than 6%.

• According to a report by the Public Security research analyst, starting from 2026, the US will impose higher tariffs on surgical and medical gloves from China, increasing from 7.5% to 25%. This will lead to more orders from China shifting to Malaysia. As a result, the ratings for Top Glove, Hartalega, and Kossan have been upgraded from “Underperform” to “Neutral,” and the glove sector rating has also been raised from “Reduce” to “Neutral.”

• The analyst stated that the performance of the three glove manufacturers tracked by the firm, namely Top Glove, Hartalega, and Kossan, has shown growth, primarily due to increased sales volumes and higher capacity utilization rates, resulting in quarter-on-quarter revenue growth.

• The analyst observed that the overall glove sales volume has increased, leading to higher quarterly revenues. Additionally, data shows that the capacity utilization rates of the three glove manufacturers have improved in the recent quarter. The capacity utilization rates of Top Glove reached 50%, an annual increase of 25%.

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

• After a brief pullback the previous week, Tianjin Pharmaceutical Da Ren Tang regained an upward trend last week, with a cumulative increase of over 6%.

• Last Tuesday, the main board of the Shanghai Stock Exchange held a performance briefing session focused on "Big Health". During the session, Wang Lei, the director and general manager of Tianjin Pharmaceutical Da Ren Tang, stated that the company is currently promoting the integration of the innovation chain, industrial chain, capital chain, and talent chain to drive traditional Chinese medicine (TCM) innovation. Strategically, the company will advance TCM innovation development in three areas: "strategic categories, heritage research, and innovative TCM research."

• She explained that in the secondary development of strategic categories, the company will promote secondary development through material basis, mechanism of action, toxicology, and clinical evidence; simultaneously, it will optimize drug delivery methods, improve formulations, and add new indications. Additionally, the company is vigorously strengthening digital empowerment by launching the Jin Yao Da Ren Tang Digital Information Strategy 1.0, continuously consolidating the data foundations of ERP and SCRM systems.

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

• According to the Edge Singapore, SATS has completed the acquisition of Terminal & Transporttjänst i Sigtuna AB (TT) and APH Logistics AB (APH) that was first announced on March 15.

• Regarding target prices, SATS received an upward revision after announcing its earnings the previous week. DBS Group Research raised SATS Ltd.'s target price to S$3.60 from S$3.40. SATS has an average rating of outperform, with price targets ranging from S$2.31 to S$3.60, according to analysts polled by CapitalIQ.

• However, Simply Wall St provided a different perspective in their research. They stated, "As expected, our analysis of SATS' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S ratio. Shareholders' pessimism about the company's revenue prospects seems to be the main factor behind the depressed P/S ratio. Unless these conditions improve, they will continue to form a barrier for the share price at these levels."

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

• Daiwa Capital Markets analysts, in a research report, indicate that Yangzijiang Shipbuilding is likely to benefit from robust ship orders. Consequently, they have raised the stock's target price from S$2.15 to S$2.80 while maintaining a buy rating. The shipbuilder secured US$3.32 billion in orders during the first quarter, which accounts for 74% of its annual target, driven by strong demand for alternative-fuel ships and oil tankers.

• As a result, the brokerage has increased its order-win forecasts for the Singapore-listed company to US$5.5 billion from US$5 billion for 2024 and to US$3.5 billion from US$3 billion for 2025. Daiwa continues to see potential upside for the company's share price as the ship-order upcycle persists.