FSMOne SG - Research Highlights

2022-04-13 09:40:10 Stock Idea

Why investors should set their sights beyond short-term headwinds for Sunny Optical

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• Despite its poor share price performance, we believe that Sunny Optical remains fundamentally sound and we still see a long runway of growth ahead for the company.

• The trend of specifications downgrade in smartphones is likely to continue in 1H22, but may start to improve in 2H22 based on customer feedback. 

• Sunny Optical will benefit from the strong growth in its vehicle-related shipments as more ADAS solutions are commercialised and adopted by car manufacturers.

• We believe there is a clear mismatch in fundamentals and valuations at this current share price level.

• Based on a fair PE of 25X, our revised target price of HKD 190 still commands a tremendous upside potential of over 60%.

: Read the full article here
: Sunny Optical (HKEX:2382) Open / Comment

2022-04-12 04:20:08 Join us tonight at 7pm where we share strategies, sectors and products we believe you can utilise in positioning your portfolio when faced with inflation and rate hikes.

Find Out More and Register - https://secure.fundsupermart.com/fsm/article/view/rcms251860/webinar-position-your-portfolio-to-rise-above-inflation-rate-hikes Open / Comment

2022-04-08 06:45:06 Stock Idea

Meituan: Impact of new guidelines only temporary, and are not expected to derail long-term growth

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• On 18 Feb, Chinese regulators issued guidelines calling for food delivery platforms to temporarily lower fees for merchants in pandemic affected areas, causing Meituan’s shares to plunge by more than -15%. 

• Meituan has previously lowered fees but on a much larger scale compared to today, but the impact on the company’s revenue was relatively insignificant. 

• All three segments of Meituan beat estimates in 4Q21 and also improved over the previous quarter, a sign that the underlying demand for online services in China remains robust.  

• Valuations remain attractive. Our target price for Meituan is HKD 298. This translates to an upside potential of 78%.

: Read the full article here
: Meituan (HKEX:3690) Open / Comment

2022-04-05 13:00:40 ETF Idea

IPAY: An integral part of our day-to-day lives in today’s “e-conomy”

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• We believe that the driving force of the payments industry is still intact and the expansion of the digital payment industry seems to be inexorable.

• Growth in consumer spending is one of the main drivers that will support the earnings of the global digital payments providers.

• Rising e-commerce and smartphone penetration rate will continue to drive digital payments adoption as well.

• In the face of rising competition, we believe that the large players have a better chance to safeguard their market share. Coupled with their strong free cash flow generating capabilities, we believe they are also likely to continue making accretive acquisitions to accelerate their capabilities.

• We arrived at our target price of USD 81.0 for ETFMG Prime Mobile Payments ETF, which translates to an upside potential of over 50% by 2023E.

: Read the full article here
: ETFMG Prime Mobile Payments ETF (NYSE:IPAY) Open / Comment

2022-04-01 04:58:43 The FSMOne Investment Academy is back for 2022!

Our first session is open to everyone, so take this opportunity to come along and learn!

Our iFAST Research Team will be sharing with you about the basics of ETFs, as well as the opportunity for investing in China which you can tap into via ETFs here at FSMOne.com

[101 Mondays] Investing in China with ETFs
Date: Monday, 4th Apr 2022
Time: 7pm

Click here to Register! Open / Comment

2022-03-31 07:28:57 Cash Management Portfolios

Make your idle cash work harder for you. DIY your cash management portfolio to get higher yields.

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• With today’s high level of inflation, holding tons of cash simply in bank accounts would mean that the real value of your savings are being eroded quickly.

• A cash management portfolio serves as an alternative to traditional bank deposits, with higher yields whilst still providing investors with a good amount of liquidity.

• With a plethora of products available on the market, investors can formulate a portfolio that is tailor-made to fit unique yield requirements.

• We have constructed model cash management portfolios that can serve as a starting point for investors. Across three distinct risk profiles (Conservative, Moderate, Aggressive), the portfolios are able to offer a net yield of up to 2.1%.

: Read the full article here Open / Comment

2022-03-29 06:40:38 Macro Research

Taiwan: Upgrade to 4.0 Stars “Very Attractive” on the back of undemanding valuations

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• Taiwan was the top performing equity market among the four Asian Tigers, with the TWSE Index rising by more than 50% over 2020-2021, surpassing its pre-pandemic level by a significant margin.

• Strong exports were among the key growth drivers of Taiwan’s economy. Exports have risen by 30% compared to the year before to USD 446 billion as the trade surplus continues to widen.

• Export growth will moderate this year due to the high base effect and greater inflationary pressures across the globe, but may be offset by the strong demand from China.

• The outlook for TSMC (the largest constituent of the TWSE Index) remains bright as more companies go fabless.

• The estimated upside potential for Taiwan is 42%. We have upgraded our rating for Taiwan by a notch to 4 Stars “Very Attractive”, from the previous rating of 3.5 Stars “Attractive”.

: Read the full article here
: iShares MSCI Taiwan ETF (NYSE:EWT) Open / Comment

2022-03-25 14:46:04 Fund Idea

Four fixed income strategies that can protect your portfolio against rising interest rates

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• Although bonds are negatively impacted by rising rates, an exposure to fixed income is still relevant as they provide diversification benefits. The question here is how investors can get the optimal fixed income exposure.

• Short duration bond funds are one great diversification option, as they carry lower interest rate risk while still providing a reasonable yield. Such funds include the Nikko AM Shenton Short Term Bond SGD.

• The divergent monetary policy between China and several major economies has created a positive backdrop for Chinese government bonds, which investors can seek shelter from. Our recommended product is the ICBC CSOP FTSE Chinese Government Bond Index ETF (SGX:CYC).

• Unconstrained bond funds, with their ability to adjust duration exposure, can act as a complement to traditional bond funds in a well-diversified portfolio. We like the Allianz Global Opportunistic Bond Cl AMg Dis USD.

• Investors who want higher yields but are comfortable with greater volatility can consider Asian high yield bonds, which provide the most attractive yield in relation to duration exposure. Our recommended fund is the Eastspring Investments – Asian High Yield Bond ASDM SGD-H.

: Read the full article here Open / Comment

2022-03-24 14:39:44 Join us on Instagram for more investing tips and updates on our latest articles!

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2022-03-24 09:06:14 Open / Comment