OCBC Investment Research: In-Depth Company Analysis
Date: 12 Dec 2024
Bumitama Agri Ltd: Ending the Year on a High Note
Bumitama Agri Ltd, symbolized as BAL SP, is marked with a ‘Hold’ rating and a fair value of SGD 0.915. The company is poised to conclude the year on a positive trajectory, reflecting its strategic initiatives and market positioning. Investors are advised to maintain current holdings while assessing future market conditions that could enhance its valuation.
Riverstone Holdings Ltd: Wearing Success
Riverstone Holdings Ltd is recommended with a ‘Buy’ status and has a fair value pegged at SGD 1.16. Known for its significant presence in the glove manufacturing sector, the company is riding high on its operational efficiencies and market demand. Potential investors are encouraged to consider this opportunity for substantial returns.
China Longyuan Power: Balancing Solar Growth and Wind Efficiency
China Longyuan Power is analyzed with a dual rating: ‘Buy’ for its Hong Kong listing (916 HK) and ‘Hold’ for its China listing (001289 CH), with respective fair values of HKD 8.40 and CNY 18.00. The company is strategically balancing its solar and wind energy portfolios, making it a formidable player in the renewable energy sector.
Bank of China (Hong Kong): Solid Earnings Growth
Bank of China (Hong Kong), trading under 2388 HK, is rated ‘Buy’ with a fair value of HKD 30.50. The bank showcases robust earnings growth, making it a compelling choice for investors seeking stability and growth in the financial sector.
Singapore Post: Proposed Divestment of Australia Business
Singapore Post, identified as SPOST SP, holds a ‘Hold’ rating with a fair value of SGD 0.58. The company’s strategic decision to divest its Australian business could reshape its operational focus and streamline its core competencies.
Singapore REITs: Loosening of Leverage and Interest Coverage Ratio Requirements Enacted
The report highlights Singapore REITs without a specific stock ticker, noting recent regulatory changes that could impact leverage and interest coverage ratios. These adjustments are pivotal for investors focusing on yield and stability in the REIT sector.
Nanofilm Technologies International Ltd: A Thawing Winter
Nanofilm Technologies, trading as NANO SP, is assigned a ‘Hold’ rating with a fair value of SGD 0.760. The company is navigating through challenging market conditions, with potential for growth as it leverages its technological innovations.
Shanghai Pharmaceuticals Co. Ltd.: Distribution Business Outperformed
Shanghai Pharmaceuticals, with listings 2607 HK and 601607 CH, both carry a ‘Buy’ rating with fair values of HKD 18.15 and CNY 25.29 respectively. The company’s distribution arm has shown remarkable performance, highlighting its strength in the pharmaceutical industry.
CNOOC Ltd: Steadfast Commitment to Growth and Efficiency
CNOOC Ltd, under the ticker 883 HK, is recommended as a ‘Buy’ with a valuation of HKD 23.44. The company remains committed to growth and operational efficiency, positioning itself as a leader in the energy sector.
KE Holdings Inc: Subdued 3Q24 Results but Expect Strong Sequential Improvement Ahead
KE Holdings, with tickers 2423 HK and BEKE US, is marked as a ‘Buy’ with fair values of HKD 78.25 and USD 30.10. Despite muted third-quarter results, the company is anticipated to experience significant improvements, making it an attractive investment.
Thai Beverage: Signs of Improvement for a Better FY25
Thai Beverage, identified as THBEV SP, receives a ‘Buy’ rating and a fair value of SGD 0.69. The company shows promising signs of recovery, which could lead to improved financial performance in the upcoming fiscal year.
Alphabet Inc: Remedy Proposals by DOJ Likely More Aggressive Than Expected
Alphabet Inc, trading as GOOGL US and GOOG US, is rated ‘Buy’ with a fair value of USD 211.00. The company is navigating regulatory challenges with potential aggressive proposals from the DOJ, yet remains a strong investment due to its market dominance.
CapitaLand Investment Ltd: Investor Day a Showcase of Building Blocks for Future Growth
CapitaLand Investment Ltd, symbolized as CLI SP, is recommended as a ‘Buy’ with a fair value of SGD 3.93. The company’s recent Investor Day highlighted its strategic initiatives for sustainable growth, making it a noteworthy player in the real estate sector.
PropNex Ltd: A Stronger 2H24 Indeed
PropNex Ltd, trading as PROP SP, is rated ‘Hold’ with a fair value of SGD 0.960. The company has demonstrated resilience in the second half of 2024, showcasing its adaptability and market strength.
First Solar Inc: Mixed Prospects Under New Administration but Structural Drivers Remain
First Solar Inc, identified as FSLR US, carries a ‘Buy’ rating with a valuation of USD 297.00. While navigating a changing political landscape, the company’s structural growth drivers remain intact, making it a viable long-term investment.
Xiaomi Corp: Strong 3Q24; EV Margin Another Beat
Xiaomi Corp, under the ticker 1810 HK, receives a ‘Buy’ recommendation with a fair value of HKD 35.50. The company’s third-quarter performance and EV margin exceed expectations, highlighting its innovation and market leadership.
Frencken Group: Cultivating Growth Levers to Position for a Turnaround
Frencken Group, trading as FRKN SP, is marked as a ‘Buy’ with a fair value of SGD 1.42. The company is strategically positioning itself for a turnaround by leveraging growth opportunities across its business units.
PetroChina Co Ltd: Gas Pricing Reform Continues
PetroChina Co Ltd, with listings 857 HK and 601857 CH, both carry a ‘Buy’ rating with fair values of HKD 8.51 and CNY 11.10. The ongoing gas pricing reforms are pivotal for the company’s future prospects, enhancing its competitiveness in the energy market.
Singapore Exchange Ltd: Strong Derivatives Momentum to Sustain Earnings Growth
Singapore Exchange Ltd, symbolized as SGX SP, is rated ‘Hold’ with a fair value of SGD 12.21. The company’s derivatives segment is a key growth driver, sustaining its earnings momentum and providing stability to investors.
Trip.com: Travel Momentum Continues
Trip.com, trading as 9961 HK and TCOM US, holds a ‘Buy’ rating with valuations of HKD 677.00 and USD 87.00. The company benefits from the ongoing recovery in the travel industry, offering substantial growth potential.
