SG Morning Highlights | CGS-CIMB Raises SATS' Target Price and Expects Improvement in Profitability
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Wednesday; STI down 0.55%
●Experts Expect Private Home Sales Rebound in Singapore in January
●Nearly Half of Singaporeans Expect Inflation to Decline, According to DBS-SMU Survey
●Stocks to watch: SATS, Amara
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG$ dropped 0.55 percent to 3,167.42 as at 9.04 am.
Advancers / Decliners is 30 to 74, with 60.58 million securities worth S$56.18 million changing hands.
Breaking News
Experts Expect Private Home Sales Rebound in Singapore in January
After a significant plunge in new home sales in December, property analysts are expecting a rebound in Singapore's private residential market this month, with the launch of three major projects in the next two weeks. The projects include the 172-unit The Arcady at Boon Keng, the 341-unit Hillhaven at Hillview Rise, and City Developments Ltd's Lumina Grand EC project in Bukit Batok. While home buying sentiment is expected to remain muted for the first half of 2024, analysts predict a significant rebound in sales this month due to the scheduled project launches. More than 20 new condo projects, with around 10,000 new units, are expected to be placed on the market throughout 2024, boosting housing supply and resulting in slower price growth.
Nearly Half of Singaporeans Expect Inflation to Decline, According to DBS-SMU Survey
Data from the Singapore Index of Inflation Expectations Survey (SinDEx) by DBS and Singapore Management University (SMU) showed that nearly half of Singaporeans (48.6%) expect inflation to decline in the next 12 months. This percentage slightly declined compared to the September 2023 results of 49.5%. The percentage of Singaporeans who expect inflation to increase has also dipped from 44% in September 2023 to 42.2% in December 2023.
Factors that are expected to drive further price decline includethe slowdown of global growth (42%), an increase in interest rates by major central banks (33%), and resolution of supply chain disruptions (17.6%). Meanwhile, those who expect inflation to increase cited geopolitical uncertainties (28%), central banks in major economies raising interest rates (37%), high demand due to the easing of COVID-19 restrictions (20%), and supply chain disruptions (15%) as factors that will increase price levels. Overall, Singaporeans' one-year-ahead inflation expectations have decreased from 4.5% in September 2022 to 4.2% in December 2023.
Stocks to Watch
$SATS(S58.SG$: CGS-CIMB has raised its target price on Sats to S$3.44 from S$3 and expects the inflight caterer and ground handler's profitability to improve. The research team's new target price is 25 times its predicted earnings for SATS in FY2026 ending March, which is one standard deviation above SATS' 2013-2018 average. CGS-CIMB believes this valuation is justified given the group's improving EBIT. The team has kept its earnings estimates for FY2024-26 unchanged and expects SATS to report a 7% quarter-on-quarter growth in revenue of S$1.4 billion for Q3 2024 ending March, supported by cargo demand and higher international visitor arrivals. It foresees an EBIT growth of 22.7% quarter-on-quarter to S$80.5 million for the same period and a 70% quarter-on-quarter growth in profit after tax and minority interests of S$28 million.
$Amara(A34.SG$: The voluntary cash offer for Amara Holdings has closed on Jan 16, with offeror Amethyst Assets securing 88.39% in shareholding interest, falling short of the 90% threshold for acceptances. This means the offeror will not be able to buy over the shares of shareholders who did not accept the offer. In November 2023, Amethyst Assets made the privatisation offer, citing low trading liquidity and a challenging growth outlook. The offer price of S$0.60 was deemed "fair and reasonable" by independent financial adviser Xandar Capital. Amara's hotel portfolio comprises its flagship Amara Singapore in Tanjong Pagar, Amara Sanctuary Resort Sentosa, Amara Signature Shanghai (China), and Amara Bangkok (Thailand).
Share Buy Back Transactions
Source: Business Times, SG investors
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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