To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,497.78 points, up 2.55% points last week.

During the last 5 trading days, $SATS LTD.(S58.SI)$, $ThaiBev(Y92.SI)$, $Keppel DC Reit(AJBU.SI)$, $Mapletree PanAsia Com Tr(N2IU.SI)$ and $TJ DaRenTang USD(T14.SI)$ are the top 5 weekly gainers, up 11.53%, 10.23%, 9.94%, 8.94% and 8.85% respectively.

$Cromwell Reit SGD(CWCU.SI)$, $NIO Inc.(NIO.SI)$, $Jardine C&C(C07.SI)$, $TCIL HK$(T15.SI)$ and $YZJ Shipbldg SGD(BS6.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

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

• With the onset of the profit season, bank stocks are showing signs of recovery in Singapore, with analysts predicting a potential six-year high in the stock market. Aletheia Capital analyst Nirgunan Tiruchelvam noted, "STI offers one of the best dividend yields in Asia. As interest rates decline, many companies in real estate investment trusts and Temasek Holdings' portfolio are poised to shine, providing stable income."

• In a recent development, SATS has restructured its gateway services capabilities, as per a filing made with the Singapore Exchange on Wednesday. Bob Chi is set to transition from his current role as CEO to the chief executive officer of Gateway Services Asia-Pacific, while Henry Low, presently serving as the chief operating officer, will take over as the CEO of Singapore Hub. These appointments are scheduled to take effect from October 1.

• As for the target price, Citi Research has raised SATS' target price from S$3.01 to S$3.76.

2. $ThaiBev(Y92.SI)$

• RHB Bank Singapore maintains an overweight rating on the food and beverage sector, citing favorable long-term GDP outlooks, as reported by The Edge Singapore last week. Analyst Alfie Yeo has slightly adjusted subsector earnings projections due to a rise in commodity prices, emphasizing the sector's growth strategies focused on boosting sales volumes and expanding market reach. Yeo's top picks include Thai Beverage, Delfi, and Food Empire.

• Last week, Thai Beverage announced its approval for its subsidiary, So Water, to launch a tender offer to acquire all remaining shares of Sermsuk for the purpose of delisting Sermsuk from the Stock Exchange of Thailand, according to a filing submitted to the Singapore Stock Exchange. So Water proposes a price of 63 baht per share for the residual 35.33% stake in Sermsuk, which totals 93.9 million shares. The delisting initiative aims to streamline Sermsuk's operations and enhance shareholder liquidity amidst low trading volumes.

3. $Keppel DC Reit(AJBU.SI)$

• Keppel DC REIT Management Pte. Ltd, the manager of Keppel DC REIT, has recently concluded a deal with Keppel Ltd. for the acquisition of a shell and core data center located in Tokyo, Japan, for JPY 23.4 billion ($201 million).

• As reported by the WSJ, this acquisition marks Keppel DC REIT's venture into Japan, recognized as Asia's second-largest data center hub, with projected annual growth exceeding 10% from 2024 to 2028. Tokyo, boasting an operational IT load surpassing 1,000 megawatts, contributes over 80% to Japan's total operational capacity.

• Commenting on the milestone, Loh Hwee Long, CEO of the Manager, stated, "Our inaugural acquisition in Japan, a prominent and rapidly expanding data center market in Asia, underscores our proficiency in acquiring premium assets in crucial data center hubs." After its anticipated finalization in Q3 2024, Keppel DC REIT's assets under management will climb to $3.8 billion, encompassing a total of 23 data centers spread across 10 nations in Asia Pacific and Europe.

• DBS analyst Dale Lai reiterated a Buy recommendation on Keppel DC REIT (KPDCF – Research Report) recently and assigned a price target of S$2.20.

4. $Mapletree PanAsia Com Tr(N2IU.SI)$

• Paul Chew, the head of research at Phillip Securities Research, notes that Singapore REITs are gaining attractiveness as potential investments. He anticipates that the challenges posed by higher interest rates and hedging unwinds will likely diminish this year, allowing REITs' rental growth to surpass interest expenses. Chew suggests that the Federal Reserve's initial rate reduction could indicate a peak in interest rates, providing clarity for real estate investors and boosting transaction activities.

• In a research report, UOB Kay Hian analyst Jonathan Koh highlights that Mapletree Pan Asia Commercial Trust stands to benefit from the resilience and growth of its Singapore properties, particularly citing the positive developments at VivoCity mall and the favorable trends in tourism and Resorts World Sentosa's expansion.

• Regarding target prices, CGS International has adjusted Mapletree Pan Asia Commercial Trust's target price to S$1.58 from S$1.59, while UOB Kay Hian revised it to S$1.68 from S$1.72. Analysts surveyed by CapitalIQ maintain an overall outperform rating for Mapletree Pan Asia Commercial Trust, with price targets ranging from S$1.30 to S$1.75.

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

• Last week, Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited experienced a significant surge of nearly 9%, breaking free from the recent downward trend in its stock price over the past four weeks.

• During the week, the company made a crucial announcement regarding the lifting of the freeze on 70 million shares held by its major shareholder, Tianjin Pharmaceutical Holdings Co., Ltd. This release encompasses about 21.14% of the shares held by TPH and represents 9.09% of the company's total share capital. With the removal of this freeze, Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited now has unrestricted access to all of its shares previously under restriction.