FSMOne SG - Research Highlights

2021-09-22 08:18:16 FSMOne.com WEBINAR

: China Technology - Are its days of growth over or is there more to discover?

: Join us this evening (22 Sept) at 7pm as our speakers from the iFAST Research team provide an outlook on the sector and suggest some areas of opportunity.

: Register Here Open / Comment

2021-09-21 13:12:29 In this week’s Bond Market Monitor, Ronshine China Holdings’ bonds fell to its lowest levels following a downgrade by Moody’s.

Plus, updates on the People's Bank of China's CNY 100b liquidity injection and Vertex Holdings’ redemption of its preference shares: https://bit.ly/3klWQXI Open / Comment

2021-09-20 12:47:08 While Singaporean real estate company Frasers’ new 7Y SGD bond provides fair value at an FPG of 3%, investors should be mindful of the higher duration risks. Find out more. Open / Comment

2021-09-20 03:31:09 Oxley will be re-opening their 6.9% 2024s for new subscriptions next week. The 3-year bond is the highest yielding SGD note among those maturing in the same year: https://bit.ly/39ePP4K Open / Comment

2021-09-17 13:16:57 Macro Research

US High Yield: Turning cautious on one of the top-performing fixed income segments

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• Credit spread for US high yield bonds has tightened significantly, almost back to its all-time low, given fading credit risk and improving credit quality. We believe this cycle of spread tightening has been overdone and valuation for US high yield bonds has turned expensive.

• In our view, the current spread level is also under-pricing credit risk. It is implying an overly low default rate as compared to credit agencies’ projections. Further, a moderating US growth momentum and an expected asset tapering in early-’22 may re-introduce credit risk further down the road.

• We expect limited upside potential from both income and price return. Yield for US high yield bonds has also plunged to near all-time low and offers no meaningful pickup against other high yield segments. Moreover, we see limited scope for spread tightening as factors that drove the initial compression will likely fade moving ahead.

• The risk-reward for US high yield bonds is increasingly skewed to the downside in our opinion. We caution against taking a large amount of risk in US high yield and recommend lightening exposure by reducing any overweight in the portfolio.

: Read the full article here Open / Comment

2021-09-16 12:56:53 After a stellar performance in 2020, Julius Baer’s 1H21 operating results remain outstanding with an increase of 12% YoY in AUM. Get insights on the Swiss bank’s latest USD perpetual note: https://bit.ly/3nNvrjR Open / Comment

2021-09-16 03:35:06 The easing of domestic and overseas restrictions bring good news for NagaCorp, who saw a loss in 1H21 due to Cambodia’s lockdown. Here’s why we are positive about them: https://bit.ly/3lDHYDN Open / Comment

2021-09-15 14:20:22 Stock Idea

JD.com: A potential winner amidst China’s Big Tech crackdown

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• JD.com to enjoy market share gains as China clamps down on the monopolistic “two choose one (二选一)” exclusivity contracts.

• JD.com is poised for growth in this new regulatory environment as its business philosophy to create value through innovation and infrastructure build, is aligned with government goals.

• Further online retail growth, especially in the luxury segment, will be a growth driver for JD.com as the company’s premium services in supply chain management suit the needs of luxury brands.

• Our 2023 target price for JD.com (HKEX:9618) is 477 HKD, and this translates to an upside potential of 62%, based on the last closing price of HKD 295 on 15 Sep 2021.

: Read the full article here
: JD.com (HKEX:9618) Open / Comment

2021-09-15 03:40:10 ETF Idea

Want to invest in the electric vehicle boom, but unsure how to? Check out this ETF

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• Government policies help to accelerate EV demand, by making them more affordable to the masses through subsidies, and creating the relevant infrastructure to support EVs.

• The surge in EV interest means that battery production must grow substantially to meet the expected demand. This helps to fuel the demand for lithium, a key component of today’s rechargeable batteries.

• Lithium demand is expected to increase by 233% during the next five years, rising from 300,000 megaton in 2020 to one million megaton by 2025.

• The lithium mining industry is unable to keep pace with this demand, and material shortages are expected to emerge, driving the price of lithium up, and benefitting upstream lithium miners in the process.

• Investors looking to tap into this megatrend should consider the Global X Lithium & Battery ETF. Our 2023 target price is USD 102, and this offers investors an upside potential of 22%.

: Read the full article here
: Global X Lithium & Battery ETF (NYSE: LIT) Open / Comment

2021-09-14 13:33:20 Macro Research

US Equities: Q2 Earnings Season Surpasses Expectations – All You Need To Know About It

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• The US Q2 earnings season has been positive, as it has generally shown positive earnings surprise (by 17%) as well as strong earnings growth (by 93.7% QoQ).

• Earnings are also becoming more broad-based, with all sectors showing positive earnings growth, and all but one sector (utilities) showing double-digit earnings growth.

• When comparing to previous bear markets in history, as well as with other DMs in the present, we also find that this earnings season has performed favourably.

• Macro outlook remains strong, but valuations are a major concern – there may be some frontloading of estimates.

• Overall, we are positive on US growth, but think that much of this positivity has already been priced in.

: Read the full article here
: Active approach - JPMorgan Funds - US Small Cap Growth A (dist) USD / Wells Fargo US Large Cap Growth Fund Cl A Acc USD;
Passive approach - Vanguard S&P 500 ETF (NYSE:VOO) Open / Comment