FSMOne SG - Research Highlights

2022-01-04 12:46:57 China Digital Economy 2022 Outlook

Expecting a strong turnaround in 2022

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• Although 2021 was a tough year for Chinese tech stocks, fundamentals remained strong, with continued revenue growth as the pandemic has accelerated the adoption of technology.

• The regulatory crackdown is not intended to deter the growth of tech companies, but rather to safeguard consumer interests and ensure sustainable growth of the sector.

• There are recent signs that regulatory pressures are easing as most rectifications by internet companies have been implemented. And since 2022 is an important political year, the government will likely prioritise social and economic stability.

• Most recently, another concern by investors is the delisting of US-listed Chinese stocks. We think it should not be a major concern now as the earliest delisting will not happen till three years later.

• Using a fair PE ratio of 30X on 2023 earnings, we get a target price of HKD 21.50 for the iShares Hang Seng Tech ETF, giving investors an attractive upside potential of 85.0%.

: Read the full article here
: iShares Hang Seng Tech ETF (HKEX: 3067) Open / Comment

2022-01-04 03:59:48 In this week’s Bond Market Monitor, China to allow ailing property developers to sell their assets to financially strong companies, and use proceeds to repay debt.

Inflation in Singapore may remain high with the increase in electricity and gas tariffs in 1Q22.

Plus, updates on Shimao, Lippo Malls and Ezion: https://bit.ly/34gSXhj Open / Comment

2022-01-03 13:10:54 ETF Q&A Series: NikkoAM-StraitsTrading MSCI China Electric Vehicles And Future Mobility ETF

Electric vehicles, autonomous driving, and smart transport have been gaining attention recently as the industry takes off.

Gain access to this fast-growing industry through the newly launched NikkoAM-StraitsTrading China Electric Vehicles and Future Mobility ETF (SGX: EVS/EVD)!


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The global electric vehicle (EV) industry is currently worth USD 250 billion and is expected to triple to USD 800 billion by 2027.

Alongside the growth in EVs, technology such as 5G, battery storage capabilities, and artificial intelligence has been advancing. These developments have opened up doors to a new era in the global transport industry.

A unique feature of this ETF is that it will be the first China EV ETF that will be listed on the SGX and the ETF is available in two currencies – SGD and USD.

Hence, Singaporean investors can gain access to the electric vehicle and future mobility industry in local currency.

: Read the full article here
: NikkoAM-StraitsTrading China Electric Vehicles and Future Mobility ETF (SGX: EVS/EVD)
Click here to subscribe! Open / Comment

2022-01-03 03:46:53 Enter the new year with this cheat sheet detailing the opportunities for SGD bonds: https://bit.ly/32KAhFU Open / Comment

2021-12-31 03:32:49 Stock Idea

Alibaba: Time to scoop up shares as valuations hit rock bottom

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• Alibaba’s shares have been extremely volatile over the past few weeks, caused by a combination of factors such as missed earnings, slowing economic growth, and the threat of delistings.

• Although the domestic commerce segment is likely to face headwinds in the near future, the growth momentum of other segments such as cloud computing is expected to accelerate.

• With China’s economic recovery showing signs of losing momentum, regulatory pressures may start to ease as China’s adopts a softer stance to bolster its economy.

• Based on the sum-of-the-parts methodology, we arrive at a target price of HKD 257 for Alibaba which translates to an upside potential of approximately 125%.

: Read the full article here
: Alibaba (HKEX:9988) Open / Comment

2021-12-29 14:12:11 ETF Idea

ETF Insights – Want to invest in the sustainable revolution? Check out these new ETFs (Dec 2021)

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• ARK’s version of an ESG ETF makes its debut.

• VanEck launches a new actively managed ETF focusing on the future of food.

• A trio of ETFs by Global X made their debut on HKEX.

• Direxion introduces a first of its kind mRNA technology-focused ETF.

• A new artificial intelligence ETF by Wisdom Tree debuts. Discover the latest happenings in the ETF industry.

: Read the full article here Open / Comment

2021-12-23 14:06:12 Stock Idea

Cheniere Energy’s transition into a cash flow machine amidst the global energy supply crunch

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• Natural gas prices have seen the largest increase against the current backdrop of strong energy demand growth and tighter supply. 

• Given the surge in the spot market prices relative to the US Henry Hub benchmark, we believe this will encourage more countries to sign long-term contracts with the US LNG providers.

• Cheniere Energy will also see an increase in total production capacity which paints a positive for its future revenue and earnings growth outlook.

• At this point, Cheniere energy has reached an inflexion point in its cash flow generation capabilities, which will support both its deleveraging and capital return plans. 

• We arrived at a target price of USD 143.0, which translates to an upside potential of almost 40% in the next two years. 

: Read the full article here
: Cheniere Energy (NYSA:LNG) Open / Comment

2021-12-23 03:24:11 Stock Idea

Q&M Dental Group is still a buy after its record breaking third quarter

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• Q&M Dental Group is a leading private dental healthcare group in Asia. It has the largest network of private dental outlets in Singapore, and an expanding presence in Malaysia and China.

• Q&M recorded an impressive third quarter. Total revenue in 3Q21 experienced a 47.6% YoY increase, while net profit saw a 57.0% YoY increase.

• The Group witnessed higher revenue coming from its dental outlets, as well as significant contribution from its Covid-19 medical laboratory/testing business.

• Q&M is a major shareholder of Aoxin, who is acquiring 49% of Acumen Diagnostics.

• The PCR tests developed by Q&M’s subsidiary, Acumen Diagnostics is able to detect the new Omicron variant.

• Our 2023 target price for Q&M is SGD 0.83. This represents an upside potential of 41%.

: Read the full article here
: Q&M Dental Group (SGX:QC7) Open / Comment

2021-12-22 14:25:42 S-REIT 2022 Outlook

S-REITs aren't all the same, here are some names to look out for in 2022

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• Supported by favourable trends, industrial REITs are a resilient sub-segment. Frasers Logistics & Commercial Trust (SGX:BUOU) and Ascendas REIT (SGX:A17U) are our top picks.

• Data centres have emerged as a bright spot among real estate asset classes during the pandemic. We think the newly listed Digital Core REIT (SGX:DCRU) offers strong growth potential at an attractive relative valuation.

•For office, Keppel Pacific Oak US REIT (SGX:CMOU) remains as our pick due to its significant tech exposure as well as attractive distribution yield.

• With the rise in e-commerce, we are less optimistic about retail REITs. Also, we see a lack of near-term catalysts that can drive a re-rating across hospitality REITs due to uncertainties over the travel recovery.

: Read the full article here Open / Comment

2021-12-17 03:23:22 Have you done your Christmas shopping? As the festive season calls for more shopping, higher retail sales could provide a boost for property developer Metro Holdings: https://bit.ly/3F2sNMM Open / Comment