FSMOne SG - Research Highlights

2022-02-15 03:23:25 Stock Idea

Meta Platforms: Recent share price wipeout is likely a knee-jerk reaction

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• Share prices tumbled over -30% post its 4Q21 earnings results, as investor sentiment was dampened by the earnings miss, slowing user growth, and weak guidance for 1Q22.

• However, it was not all bad news. Revenue did not miss estimates and grew fairly decently at 20% year-over-year (YoY), and management announced that good progress was made on working around the privacy changes.

• Other positives included progress on Instagram reels, with Instagram reaching the 2 billion user mark. This gives us added confidence in the potential of Instagram Reels in rising to compete against TikTok and drive user growth for Meta.

• We keep to our view that Meta’s moat in digital advertising cannot be so easily overthrown and that headwinds from the rising competition and Apple privacy changes will be overcome.

• Trading at 14X PE based on 2023 earnings, as of 11 February 2022, the upside potential of 65% to target price of USD 380 for Meta Platforms (NASDAQ: FB) is attractive.

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: Meta Platforms (NASDAQ: FB) Open / Comment

2022-02-15 03:22:27 FSMOne SG - Research Highlights pinned « Apart from popular shows like Squid Game, Korea produces cars as well. The second largest Korean car manufacturer has strong credit metrics and is issuing two bonds to finance their green projects: https://bit.ly/3ot0cKc» Open / Comment

2022-02-09 05:24:47 Apart from popular shows like Squid Game, Korea produces cars as well. The second largest Korean car manufacturer has strong credit metrics and is issuing two bonds to finance their green projects: https://bit.ly/3ot0cKc Open / Comment

2022-02-07 03:30:18 Stock Idea

TSMC: One chipmaker that has serious potential to outperform its peers

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• TSMC capped off 2021 with a record USD 56 billion in revenue – 25% higher than the year before as all six platforms experienced positive growth.

• The company has budgeted up to USD 44 billion in capex this year, most of which will be used to develop advanced technologies, where demand remains robust.

• Given its focus on advanced technologies, TSMC is in a much better position to weather any future slowdowns compared to its smaller peers.

• Based on a fair PE multiple of 24X, we arrive at a target price of USD 148 for TSMC. This implies an upside potential of close to 25% based on its last traded price of USD 119.84 (as of 3 Feb 2022).

: Read the full article here
: Taiwan Semiconductor Manufacturing Company (NYSE:TSM) Open / Comment

2022-02-05 06:46:48 In the business of supplying water to over 30 million people, China Water Affairs operates through a Transfer-Own-Operate strategy, essentially holding the ability to operate its water utility assets perpetually.

Its bond due 2026 is now yielding 5.67% on Bond Express: https://bit.ly/3GsiDVJ Open / Comment

2022-02-04 15:02:29 With a merger underway to leapfrog a new entity - Mapletree Pan Asia Commercial Trust into the top 10 REITs in Asia, here's what investors need to know: https://bit.ly/3J7ejgh Open / Comment

2022-02-04 12:26:11 ETF Q&A Series: KraneShares CSI China Internet ETF


Q&A Series: Invest in China’s Internet sector through the KraneShares CSI China Internet ETF


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With the regulatory crackdown, the question investors have been asking throughout 2021 is when will the worst be over for Chinese Internet companies? Here we discuss the key questions regarding the fate of China’s Internet sector with KraneShares.

: Read the full article here
: KraneShares CSI China Internet ETF (NYSE: KWEB) Open / Comment

2022-01-27 15:39:04 Updates on Evergrande’s first offshore investor call, assessment of the developer’s current situation and what investors can look out for next: https://bit.ly/34foAaM

"Green light" developer Sino-Ocean Group has a healthier credit profile compared to its peers. Based on its IPG of 6.5%, the Group’s retap issue offers a much higher yield than other BBB-rated bonds with similar maturities. https://bit.ly/3FZyAm1 Open / Comment

2022-01-26 05:29:03 In this week’s Bond Market Monitor, we see the yield of 2-year US Treasuries increase by 3 bps while China cut its Loan Prime Rate for the second straight month, and other updates: https://bit.ly/3KwvGZr

Olam will be spinning off its OFI Business on the London Stock Exchange, calling for a consent solicitation exercise and an exchange offer: https://bit.ly/3qK6WVz Open / Comment

2022-01-24 15:19:15 Global Financials 2022 Outlook

Global financials: Uptrend to continue on the back of rosier economic outlook and higher rates

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• Economic growth will be the main driver for the different business lines in the financials sector, particularly the banks and insurance companies.

• We believe the prospect of higher interest rates this year will be the biggest catalyst for the major banks across the globe.

• The major banks have also proven to be resilient during market downturns and are likely to remain so despite potential risks from the Omicron variant.

• The global insurance industry is expected to deliver an average growth of about 3.9% in life premium and 3.3% in non-life premium moving into 2022.

• We expect to see uneven performance across the diversified financials moving into 2022. Based on our fair PB of 1.3X, investors can expect double-digit upside potential by end-2023. We maintain our star rating for the global financials sector at 3.5 Stars “Attractive”.

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: Active approach - Blackrock World Financials; Passive approach - iShares Global Financials ETF (NYSE:IXG) Open / Comment