AmEquities

🏬 *REIT Watch - Larger S-REITs rank among those with highest net retail inflows in 2024*

Retail investors have been net buyers of S-REITs in 2024. These investors net bought some S$1.6 billion across the sector, and the S-REITs with the highest inflows were mostly large counters. All seven S-REITs on the STI had positive net retail inflows, while CapitaLand Ascott Trust and Keppel Reit, which are currently on the STI reserve list, also ranked among the top 10. Across the broader Singapore market, the REIT sector was also the sector with the highest net retail inflows in 2024, followed by Real Estate (excluding REITs), which saw around S$400 million in net inflows.

🏢 *REIT Watch - S-REITs Navigate a Challenging 2024 with Mixed Returns*

After a challenging year for the Singapore real estate investment trusts (S-REITs) sector, S-REITs ended 2024 in the red, with the iEdge S-REIT Index generating a total return of -6.1 per cent inclusive of distributions. The S-REIT sector is now trading at a price-to-book ratio of 0.84 times, which represents a discount of around 16 per cent as compared to its longer-term average.

🏙️ SGX Research: SREITs & Property Trusts Chartbook – 4Q 2024

Retail investors net bought S$557.3m of S-REITs between Sep to Nov 2024. S-REIT managers have also been active in their acquisition activities during the quarter, as they eye growth opportunities.

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Note: Open to Public

⌨️ *Stock of The Week: Grand Venture Technology (SGX: JLB)*

- GVT provides solutions and services for the manufacture of ultra-precision machining, sheet metal components and complex mechatronics modules.

- GVT is collaborating with major tech companies on solutions for next generation accelerators that are essential for AI application, and has been expanding its front-end semiconductor customer base with a new facility in Penang, Malaysia, positioning it for industry growth and demand recovery.

- GVT's revenue rose by 35.8% from S$82.4m in 9MFY23 to S$111.9m in 9MFY24 with growth across all key businesses, most prominently in the semiconductor segment with a y-o-y revenue growth of 50.8%. According to Refinitiv, GVT commands a healthy valuation with a P/E close to 30x, and the stock has doubled its share price since listing in Jan 2019.

*All data as of 9 Dec 2024

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🎙️BFM Market Watch: Singapore STI, A Sleeper Hit

The Singapore Straits Times Index (STI) is proving to be the sleeper hit in Asia with a return of 19% on a year-to-date basis. We ask Geoff Howie, Market Strategist, Singapore Exchange as to whether the markets will continue to rally in 2025 and what are the potential themes that will outperform.

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📈 *Interested in the top 5 performing ETFs YTD?* Here are the highlights:

• *CSOP iEdge Southeast Asia+ TECH ETF:* Thrived due to strong performance in Southeast Asia’s tech sector, driven by increased digital adoption and innovation.
• *SPDR®️ Gold Shares:* Excelled as a safe haven amid economic uncertainties and geopolitical tensions, effectively hedging against inflation.
• *SPDRs®️ S&P 500®️ ETF:* Benefited from US exceptionalism and a favorable rate-easing environment, providing strong support for large-cap companies.

🇪🇺 *REIT Watch - European-focused S-REITs broaden their mandate, confident that continent has moved beyond the market trough*

Market conditions in the European property sector are showing signs of improvement, which is expected to positively impact S-REITs with exposure to this segment. Global investment firm KKR noted that recovery for the European real estate market has started, after the market experienced one of the largest repricings over the past two years. This was driven by rising interest rates and inflation - similar but unlike the global financial crisis where the repricing was driven by an economic downturn.

💶 *Navigating Opportunities in European S-REITs*

Did you know that Singapore-listed REITs have substantial overseas exposure, with over 90% of their assets held abroad? Among them, three European S-REITs provide exposure to various sectors of the economy, offering investors a chance to diversify their portfolios.

Discover more about these European S-REITs in an insightful article by Beansprout. Learn how interest rate cuts by European central banks could impact these REITs and why this might be a great investment opportunity for you.

📈 *Latest Highlights of REIT ETFs on SGX*

• *Bond Yields & Fed Rate Cut:* Post-Trump’s election victory, the 10-year UST yield rose to 4.48%. The Fed’s 25 bps rate cut on Nov 7 lowered the federal funds rate to 4.50%-4.75%, boosting REIT valuations.
• *Impact on REITs:* Higher bond yields have pressured REIT prices due to increased borrowing costs and risk-free rates.
• *Performance Highlights:* The CSOP iEdge S-REIT Index ETF achieved a 6.1% dividend yield and a 3-month return of 5.01% in Oct 2024, showcasing strong performance among major S-REITs.

*Daily Trade Statistics*
AmBank Retail Research

21 November 2024, Thursday,
Trade Statistics | Participation:
Volume traded 3.4bil
Value traded RM2.5bil
Local Retail: RM12.7m | 20.2%
Local Insti: RM121.8m | 42.6%
Foreign: -RM134.5m | 37.2%

22 November 2024, Friday,
Trade Statistics | Participation:
Volume traded 2.6bil
Value traded RM2.3bil
Local Retail: -RM14.0m | 19.4%
Local Insti: RM53.6m | 43.1%
Foreign: -RM39.6m | 37.6%

25 November 2024, Monday,
Trade Statistics | Participation:
Volume traded 3.0bil
Value traded RM5.4bil
Local Retail: -RM64.0m | 8.6%
Local Insti: RM277.3m | 23.8%
Foreign: -RM213.3m | 67.6%

*AmBreakfast Note*
26 November 2024
AmBank Retail Research

*Market Overview*

*FBM KLCI* up 7.7pts or 0.5% to close at 1,597.45. We maintained the resistance level at *1,700* and change the support level at *1,580*. Trading volume increased to 3.0bn (2.6bn previously), while trading value was at RM5.4bn (RM2.3bn previously). Market breadth remained negative (501 Vs 540). Gainers were seen in technology (+2.0%), utilities (+1.5%), and financial services (+1.3%); while losers were seen in consumer (-0.8%), telecommunications (-0.6%), and construction (-0.5%).

*Asian Equities* ended mixed. Hang Seng index declined 0.4% due to looming new export restrictions on China. Japan Nikkei 225 rose 1.3%. *European STOXX 600* up 0.1%. *US stocks* ended higher on Monday as markets weighed President-elect Donald Trump's planned nomination of Scott Bessent as Treasury secretary. Dow added 1.0%, while Nasdaq gained 0.3% as traders looked ahead to the minutes from the Federal Reserve's most recent policy-setting meeting as well as a key inflation metric due for release later in the week.

*Future market* indicate a *Positive* opening for Asian equities today.
*AmBank Equity Research reports:*

*SOLARVEST HOLDINGS* (HOLD Maintained, FV: RM1.70) LSS4 assets are contributing

*Stock on Radar*: SFP TECH HOLDINGS

*Malaysia*
KLCI: 1,597.45 (+7.7, +0.5%)
FBM Small Cap: 17,116.46 (+0.2%)
Gainers: 501 | Unch: 479 | Losers:540

*Global Markets*
Dow: 44,736.58 (+440.1, +1.0%)
NASDAQ: 19,054.84 (+0.3%)
Europe STOXX 600: 508.79 (+0.1%)
Hang Seng: 19,150.99 (-0.4%)
Nikkei: 38,779.92 (+1.3%)
Straits Times: 3,731.40 (-0.4%)
Oil (Brent): 69.01 (-3.0%)
CPO: 4,699.00 (+1.2%)
USD/MYR: 4.4480 (-0.4%)


_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message._

*Corporate News* (Source: The Edge)
26 November 2024
AmBank Retail Research

*IJM Corp Bhd* is buying a 50% stake in UK-based construction firm JRL Group Holdings Ltd for £50 million (RM283 million) to expand into the UK and strengthen its core construction capabilities. The transaction involves its subscription to 50% of the enlarged equity interest in JRL.


*RHB Bank Bhd* will be divesting its entire 99.95% stake in RHB Securities (Thailand) Public Company Ltd to Singapore-based stock brokerage firm Phillip Brokerage Pte Ltd for THB1,253.77 million (RM161.81 million), marking its exit from Thailand's stockbroking and securities market.

Some 647.13 million shares in *Affin Bank Bhd* representing a 26.96% stake were traded off-market on Monday. Bloomberg data showed that the shares were sold in eight tranches for RM1.78 billion.

The Indonesian sister company of *Mr DIY Group (M) Bhd* will list shares in Jakarta through an initial public offering (IPO) that seeks to raise as much as 4.7 trillion rupiah (US$297 million or RM1.32 billion), in what would be the nation’s biggest listing in more than a year.

*Petronas Dagangan Bhd*’s net profit jumped 81.4% year-on-year to RM335.13 million for the third quarter ended Sept 30, 2024 (3QFY2024) from RM184.72 million previously, on the back of strong margins supported by favourable price trends, coupled with a decrease in overall product costs due to lower purchase premium.

*KLCCP Stapled Group*’s 3QFY2024n et profit rose 11.44% year-on-year to RM206.53 million from RM185.34 million, driven by strong performances across its business segments, particularly the retail and hotel division.

Property developer *S P Setia Bhd*’s reported a 93% year-on-year surge in its 3QFY2024 net profit of RM100.02 million, up from RM51.82 million, driven by higher profit from land sales which offset losses from the Battersea Power Station project and lower contributions from its Australian operations.

*IOI Properties Group Bhd*’s net profit fell 60.3% to RM69.17 million in the first quarter ended Sept 30, 2024 (1QFY2025), to RM174.45 million a year ago, no thanks to higher interest expense.

Semiconductor packaging and testing services provider *Malaysian Pacific Industries Bhd* a unit of Hong Leong Group, said it is anticipating a challenging operating environment ahead, even as it reported a near doubling of its net profit for its first quarter spanning July to September this year.

*Hong Leong Industries Bhd*’s net profit rose 60.3% to RM140.56 million in the first quarter ended Sept 30, 2024 (1QFY2025), from RM87.67 million a year ago, m

*Gas Malaysia Bhd*’s net profit rose 34.6% year-on-year to RM115.99 million in 3QFY2024, from RM86.16 million a year ago, driven by higher volume of natural gas sold, average natural gas selling prices and tolling fees.

*Solarvest Holdings Bhd* posted a 28.1% rise in net profit to RM9.2 million for its second quarter ended Sept 30, 2024 (2QFY2025), from RM7.2 million a year earlier, driven by improved margins from its commercial and industrial segment, supported by a reduction in solar panel costs.

*Ho Hup Construction Company Bhd* has resolved a winding-up petition filed by its supplier, Joterix Sdn Bhd, over an alleged unpaid sum of RM184,438.80.

*Haily Group Bhd* has secured a RM115.1 million contract, its largest this year, for the construction of residential units in Johor Bahru. Awarded by Permas Jaya Sdn Bhd, a subsidiary of Bandar Raya Developments Bhd.

_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message. The information herein constitutes our findings as of this date and is subject to change without notice._

*STOCK ON RADAR*
26 November 2024
AmBank Retail Research

*SFP TECH HOLDINGS* (0251)
Shariah Compliant: Yes
Entry : RM0.67–0.685
Target : RM0.75, RM0.80
Exit : RM0.62


_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message. The information herein constitutes our findings as of this date and is subject to change without notice._

Morning here today video

*STOCK ON RADAR*
21 November 2024
AmBank Retail Research

*AGX GROUP* (0299)
Shariah Compliant: Yes
Entry : RM0.60–0.615
Target : RM0.70, RM0.75
Exit : RM0.53


_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message. The information herein constitutes our findings as of this date and is subject to change without notice._

*Corporate News* (Source: The Edge)
21 November 2024
AmBank Retail Research

*Petronas Chemicals Group Bhd* sank into the red for the first time ever since its listing more than a decade ago in the third quarter ended Sept 30, 2024 (3QFY2024).


*SD Guthrie Bhd*, formerly known as Sime Darby Plantation Bhd, saw its net profit for 3QFY2024 fell 36.75% to RM766 million from RM1.21 billion due to the absence of a gain on land disposal, despite higher crude palm oil (CPO) prices.

*Perdana Petroleum Bhd*’s net profit jumped threefold for 3QFY2024 to RM75.8 million from RM22.75 million a year earlier thanks to better charter rates, vessel utilisation and forex gain.

*Hap Seng Plantations Holdings Bhd*’s net profit for 3QFY2024 rose 46% to RM55.43 million — its highest in nearly three years — from RM37.85 million a year ago, boosted by strong palm oil prices and lower operating expenses.

*RCE Capital Bhd*’s net profit for the second quarter ended Sept 30, 2024 (2QFY2024) dropped 27.25% to RM27.83 million from RM38.25 million a year ago.

*MyEG Services Bhd*’s net profit for 3QFY2024 increased 62.55% to RM195.05 million from RM120 million in the same quarter last year.

*Pos Malaysia Bhd*’s recorded 49.6% higher net loss for 3QFY2024 to RM49.89 million from RM33.34 million in the same quarter a year earlier on lower postal and freight volume, and higher other and tax expenses.

*UOA Development Bhd*’s net profit for 3QFY2024 dropped 5.2% to RM48.34 million compared with RM50.86 million a year ago, despite revenue rising 32% to RM141.36 million from RM107.04 million on higher progressive recognition of ongoing development projects.

*Amway (Malaysia) Holdings Bhd*’s net profit for 3QFY2024 dropped to RM32.9 million from RM46.2 million a year earlier.

*Formosa Prosonic Industries Bhd*’s incurred a net loss of RM18.1 million for the third quarter ended Sept 30, 2024 (3QFY2024) — its first losses since 2015 — versus a net profit of RM48.87 million in 3QFY2023 on forex loss.


*Hextar Industries Bhd*’s net profit for 3QFY2024 dropped 12.59% to RM11.47 million from RM13.12 million in the same quarter a year earlier, on impairment loss and higher administrative expenses.


*Thong Guan Industries Bhd*’s net profit for 3QFY2024 shrank nearly one-third to RM15 million from RM21.9 million a year ago, dragged by lower contribution from its plastic packaging products' segment.


*Kawan Food Bhd*’s net profit for 3QFY2024 fell 87.5% to RM960,000 from RM7.69 million in the same quarter last year, dragged by unrealised forex losses and a higher tax charge.

*RHB Bank Bhd* aid the Kuala Lumpur High Court has sided with Tokio Marine Life Insurance Malaysia Bhd in the dispute over their bancassurance business, ruling the insurer’s right to first refusal is still in effect.

*IFCA MSC Bhd* is targeting RM440 million in new sales over the next three years mainly through new customers arising from its property management system solutions, optimising pricing and growing its distributors programme.

*Sapura Energy Bhd* has secured a contract to provide pan-Malaysia services, involving offshore maintenance, construction, and modification as well as hook-up and commissioning services, from Petronas Carigali Sdn Bhd.

*Reservoir Link Energy Bhd*’s unit has been appointed as a panel contractor for integrated well continuity services by national oil-and-gas company Petroliam Nasional Bhd (Petronas).

*Velesto Energy Bhd* is collaborating with Petronas, through the Malaysia Petroleum Management and the National Oilwell Varco LP.

*Zelan Bhd*’s chief executive officer Mohd Ariff Abd Samat has resigned from the post three months after his appointment “to pursue other career opportunities”.

*Sarawak Cable Bhd*’s trading is to resume on Thursday as Bursa Malaysia has filed an application to the High Court seeking clarifications on the legal implications of the court's appointment of an interim judicial manager.

_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party.

It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message. The information herein constitutes our findings as of this date and is subject to change without notice._

*AmBreakfast Note*
21 November 2024
AmBank Retail Research

*Market Overview*

*FBM KLCI* down 4.2pts or 0.3% to close at 1,598.18. We maintained the resistance level at *1,700* and change the support level at *1,580*. Trading volume decreased to 2.7bn (2.8bn previously), while trading value was at RM2.4bn (RM2.1bn previously). Market breadth remained negative (457 Vs 546). Gainers were seen in construction (+0.9%), health care (+0.9%), and telecommunications (+0.5%); while losers were seen in utilities (-0.6%), financial services (-0.5%), and property (-0.5%).

*Asian Equities* ended mixed. Hang Seng index gained 0.2% as investors remained cautious amid steady lending rates. Japan Nikkei 225 eased 0.2%. *European STOXX 600* closed flat. *US stocks* ended mixed on Wednesday. Dow added 0.3% as traders evaluated the latest corporate earnings and remarks by Federal Reserve officials. Nasdaq slid 0.1% as investors parsed the latest corporate earnings and awaited Nvidia's (NVDA) results.

*Future market* indicate a *Mixed* opening for Asian equities today.
*AmBank Equity Research reports:*

*PETRONAS CHEMICALS* (HOLD Maintained, FV: RM5.10) Closing in to floor on multi-year low foreign holdings

*SD GUTHRIE* (HOLD Maintained, FV: RM5.00) Boosted by Malaysia upstream division

*Stock on Radar*: AGX GROUP

*Malaysia*
KLCI: 1,598.18 (-4.2, -0.3%)
FBM Small Cap: 17,184.84 (0.0%)
Gainers: 457 | Unch: 527 | Losers:546

*Global Markets*
Dow: 43,408.48 (+139.5, +0.3%)
NASDAQ: 18,966.14 (-0.1%)
Europe STOXX 600: 500.50 (0.0%)
Hang Seng: 19,705.01 (+0.2%)
Nikkei: 38,352.27 (-0.2%)
Straits Times: 3,743.65 (-0.4%)
Oil (Brent): 68.99 (-0.4%)
CPO: 4,815.00 (-2.2%)
USD/MYR: 4.4710 (-0.2%)


_Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message._

18 November 2024, Monday,
Trade Statistics | Participation:
Volume traded 3.0bil
Value traded RM2.2bil
Local Retail: -RM6.0m | 18.5%
Local Insti: RM16.6m | 40.9%
Foreign: -RM10.6m | 40.6%

19 November 2024, Tuesday,
Trade Statistics | Participation:
Volume traded 2.8bil
Value traded RM2.1bil
Local Retail: -RM46.8m | 19.3%
Local Insti: -RM19.6m | 40.5%
Foreign: RM66.3m | 40.2%

20 November 2024, Wednesday,
Trade Statistics | Participation:
Volume traded 2.7bil
Value traded RM2.4bil
Local Retail: -RM31.2m | 19.2%
Local Insti: RM78.3m | 47.0%
Foreign: -RM47.1m | 33.9%