Sheffield Green: Building the Renewable Energy Workforce of the Future
Sheffield Green, headquartered in Singapore, is leading the charge in HR solutions for the renewable energy industry. Their strategic focus on providing personnel and ancillary services, such as visa processing and logistics, positions them as a trusted partner in the sector. The company aims to capture the burgeoning demand for skilled workers, driven by an expected boom in the offshore wind market, projected to escalate from US\$46.6 billion in 2024 to US\$325 billion by 2034.
Their recent initiatives, such as launching a training center in Chiayi, Taiwan, exemplify their commitment to expanding their footprint. This center, accredited by the Global Wind Organisation (GWO), offers advanced training programs and supports Taiwan’s renewable energy targets. Sheffield Green is also expanding its training centers to Japan, South Korea, and the Philippines, aligning its growth strategy with market demands.
Financially, Sheffield Green has maintained resilient performance with gross margins at 29.5% in FY24, despite increased expenses from listing costs and headcount expansions. Their strategic acquisitions and training facilities are set to bolster their revenue and solidify their role in workforce development across the Asia-Pacific region.
China/HK Sector: Internet Companies’ Outlook for 1H25
The internet sector in China/HK presents a nuanced outlook shaped by fiscal stimuli and US tariffs. The sector witnessed in-line top-line growth in 3Q24 amidst a lukewarm macro environment, yet experienced an earnings boost due to AI integration. Key focus areas for 2025 include e-commerce growth, ad rate monetization, online gaming, and travel enthusiasm.
E-commerce players like Alibaba and JD.com are expected to regain momentum with high single-digit growth, bolstered by policy developments and home appliance trade-in programs. Online gaming shows potential as a countercyclical play, with innovation in monetization and new formats like simulation and mini-games driving growth. Tencent’s successes with titles like Black Myth: Wu Kong and Dungeon Fighter Mobile highlight the competitive landscape.
Online advertising is set to enhance earnings visibility with ad-tech upgrades improving take rates. Companies like Tencent and Alibaba are prioritizing monetization improvements and profitability through strategic ad-tech enhancements.
Huize Holding: A Turnaround to Profitability
Huize Holding showcased a remarkable turnaround in 3Q24, with a 26% year-over-year revenue growth and a return to profitability. This performance was underpinned by robust demand for long-term savings products, which drove a 66% increase in gross written premiums (GWP).
Despite the positive revenue trend, Huize faced regulatory challenges impacting commission rates. However, the company managed to mitigate these with its omnichannel distribution network. The brokerage income growth was slower due to a narrowed blended commission rate, reflecting industry-wide rationalizations.
Huize’s international expansion is progressing, with revenue contributions from international markets increasing to 19% in 3Q24. The strategic acquisition in Vietnam and plans for further expansion into ASEAN countries and obtaining a broker license in Singapore are part of their growth trajectory. Despite these advancements, Huize’s gross margin experienced a squeeze due to increased cost structures, but the company is optimistic about stabilizing these expenses in the coming quarters.
Investment Recommendations and Market Trends
UOB Kay Hian maintains a “BUY” recommendation for these companies, underscoring their strategic positioning to capitalize on market trends. For Sheffield Green, their niche expertise and expansion efforts are expected to capture the growing demand within the renewable energy sector. In the China/HK internet sector, companies are poised to benefit from e-commerce growth, gaming innovations, and advertising improvements.
Huize Holding’s focus on long-term savings products and international market expansion positions it well for sustained growth. The company’s strategic adjustments in commission structures and operational efficiencies are expected to bolster its financial performance moving forward.
Overall, these companies are strategically aligned with market trends and poised for significant growth, with UOB Kay Hian’s insights providing a comprehensive guide for investors navigating these sectors.
