FSMOne SG - Research Highlights

2021-12-02 12:39:55 Stock Idea

Medtronic: The world’s largest medical device company is an excellent re-opening play

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• Medtronic is the largest pure-play global medical device company in the world.

• The company’s past year underperformance can be attributed primarily to the deferment of elective surgeries, impacting the demand for Medtronic’s devices and consumables.

•Amidst increasing vaccination rates, the Covid-19 situation has been improving. Elective procedures have started to pick back up, driving an earnings recovery.

•We are looking forward to the launch of Medtronic's robotic-assisted surgery platform, seeing that the global surgical robotics market is set to benefit from much growth ahead.

• Our 2023 target price for Medtronic is USD 155, and this translates to an upside potential of 47%.

: Read the full article here
: Medtronic PLC (NYSE:MDT) Open / Comment

2021-12-01 13:08:05 Stock Idea

Cromwell European REIT is yielding at 7%, and logistics will be a key driver for growth

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• On the back of its strengthening light industrial / logistics portfolio, Cromwell European REIT (CEREIT) has been delivering a resilience performance.

• Light industrial / logistics properties are expected to account for 50% of the REIT’s portfolio eventually, up from the current 39%.

• Looking ahead, we believe that the light industrial / logistics portfolio can drive sustainable growth for CEREIT. Growth in logistics rents is underpinned by shortage of supply and robust demand from e-commerce and manufacturers.

• We maintain our target price of EUR 2.65, which translates into an upside potential of 3%. While CEREIT seems about fairly valued, investors can continue to look forward to a strong stream of recurring income, with a yield of 7.3% in FY2022.

: Read the full article here
: Cromwell European REIT (SGX:CWBU) Open / Comment

2021-12-01 03:26:09 In this week’s Bond Market Monitor, the Reserve Bank of New Zealand increased its official cash rate while China kept its loan prime rate unchanged.

Plus, the 2021 list of global systemically important banks is out, and KWG Group’s outlook has been lowered to negative: https://bit.ly/32J2hd1 Open / Comment

2021-11-26 13:23:03 The biggest business trust listed on the SGX, Keppel Infrastructure Trust, has introduced a new 5-year bond issue at a FPG of 3%: https://bit.ly/3DQ8mBY Open / Comment

2021-11-23 12:49:19 In this week’s Bond Market Monitor, Evergrande raised HKD 2.1b through its sale of HengTen Network shares.

Plus, updates on Ascendas REIT’s joint venture with CapitaLand Limited and Hyflux’s liquidation FAQs: https://bit.ly/3DG14Rn Open / Comment

2021-11-22 13:56:01 Stock Idea

LONGi Green Energy: The world's biggest solar company could reach new highs

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• LONGi Green Energy is the world’s largest manufacturer of solar wafers and modules, which are products in the solar photovoltaic (PV) manufacturing value chain.

• The company is a prime beneficiary of the long-term growth in the global solar PV market. Demand for solar remains strong due to green initiatives driven by Asia, the US, and the EU.

• What sets LONGi apart from competitors is its strong profitability. We expect the company to maintain its cost leadership position due to its cutting-edge technology as well as large production scale.

• Our target price for LONGi is CNY 130, derived based on a 38X fair PE ratio to the estimated 2023 earnings per share. This translates into an upside potential of 41%.

: Read the full article here
: LONGi Green Energy (SSE:601012) Open / Comment

2021-11-18 12:46:27 Singapore’s first publicly listed REIT with a European portfolio has announced a perpetual note offering with an FPG of 5%: https://bit.ly/32eFqWF Open / Comment

2021-11-17 03:31:10 ETF Idea

Amidst China’s regulatory crackdowns, these sectors could benefit from policy tailwinds

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• China’s regulatory actions have put investors on high alert, as they fear that the crackdown on the nation’s tech and education sectors could expand to other sectors of the economy.

• However, opportunities remain in areas that are fundamental to the longer term competitiveness of the country. Investors would do well to invest in companies that align with China’s strategic goals.

• Semiconductors, renewables, and EVs are sectors which have been identified to be crucial to China’s long-term economic future, and are areas of opportunity.

• Investors seeking exposure to China’s semiconductor industry can consider the Global X China Semiconductor ETF.

• Investors seeking to benefit from China’s clean energy transition can consider the Global X China Clean Energy ETF and the Global X China Electric Vehicle and Battery ETF.


: Read the full article here
: Global X China Semiconductor ETF (HKEX:3191), Global X China Clean Energy ETF (HKEX:2809), Global X China Electric Vehicle and Battery ETF (HKEX:2845) Open / Comment

2021-11-16 13:13:18 Stock Idea

HKEX will be the prime beneficiary as China opens up its capital markets to the world

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• Hong Kong Exchanges and Clearing Group is currently one of the largest exchanges in the world. It remains a key capital-raising and financial hub in Asia and is needed to facilitate cross-border capital flows between China and international markets.

• Thanks to the close ties between Mainland China and Hong Kong, HKEX will continue to be the preferred gateway between Mainland China and the rest of the world.

• With rising US-China tensions and a more conducive listing environment in Hong Kong, more Chinese companies are choosing HKEX as their preferred listing location. An increasing number of US-listed Chinese companies are also seeking secondary listings on HKEX.

• Besides its equity business, HKEX’s derivatives business will be another growth engine for HKEX.

• Based on its 2023E earnings, we arrived at a target price of HKD 565 and an upside potential of 22.0%.

: Read the full article here
: Hong Kong Exchanges and Clearing Group (HKEX:388) Open / Comment

2021-11-16 03:30:59 In this week’s Bond Market Monitor, MAS uploaded its SGS issuance calendar for 2022.

Plus, updates on Asia High Yield Bond Index’s 1.50% gain, SPH’s transfer of Media business, and Zhongliang Holdings’ repurchase of two bonds: https://bit.ly/3HjugQt Open / Comment