KGI Securities Singapore

2021-08-31 03:30:01 Here's What's Hot Today in SG
31 August 2021

Silverlake Axis (SILV SP) shares rose by 7.7% yesterday, near its previous six month high of S$0.285, after the company announced 27 Aug that it has secured contracts during the fourth quarter for the financial year ended 30 June 2021.

Frencken Group (FRKN SP) shares continued to rise since last Thursday, with total gains of 9.5% as of yesterday’s closing price.

UG Healthcare Corporation (UGHC SP) shares rose by 5.7% yesterday, rebounding from its 52-week low after the company reported positive FY21 results.

Olam International (OLAM SP) shares rose by 4.6% yesterday to close at S$1.60, near the previous one-month resistance levels.

UMS Holdings (UMS SP) shares rose by 2.4% yesterday, even though there was no company specific news. The rise in share price could be due to an industry spillover effect in the semiconductor space.


Read more: https://www.kgieworld.sg/research/31augsg
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@kgisg Open / Comment

2021-08-30 04:30:07 Initiation: Geo Energy Resources (GERL SP), 30 August 2021
Cash machine

GEO is set to have a record year ahead as coal prices remain resilient. ICI 4 prices (4,200 kcal) are at more than 10-year highs. While we expect coal prices to soften in 2H2021, dynamics favour coal miners given the buoyant demand from India and China.

GEO’s two key mines have a total estimated coal reserve of 84 million tonnes, based on a Joint Reserves Committee (JORC) Compliant report issued in December 2020.

Our DCF calculation (13.5% WACC and no terminal value) estimates a fair value of S$0.42 based on a conservative 6-year mine life and 66mn tonnes production.

Upgrade to Outperform as we raise our fair value to S$0.42. We forecast GEO will generate US$247mn of free cash flows in 2021 and 2022, more than its current market cap. It currently trades at only 2.0x 2021F P/E and offers an above-industry 9% forward div yield.



Read More: https://www.kgieworld.sg/research/geo-energy/
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@kgisg Open / Comment

2021-08-30 03:50:02 Top Stories, 30 August 2021

1. Gold Price Forecast: Bulls seeking a break of $1,834 while above $1,805
https://www.kgieworld.sg/research/czg5

2. HKEX’s MSCI China Free Net (USD) Index Futures contract provides a tool for investors to trade and manage their exposure in the Chinese equity market.
The MSCI China Free Index includes large and mid-cap Chinese companies listed globally such as Alibaba, Tencent, Meituan Dianping etc. Find out more: https://www.kgieworld.sg/research/hkexmcf

3. US dollar: More stability with Fed tapering plans priced in – Goldman Sachs
https://www.kgieworld.sg/research/od7i

4. U.S. Gasoline Prices Jump After Hurricane Ida Disrupts Supplies
https://www.kgieworld.sg/research/nu7w

5. China targets jobs, wages and training in new 5-year economic blueprint
https://www.kgieworld.sg/research/8ny5

6. Stocks Set to Climb on Powell’s Dovish Fed Stance: Markets Wrap
https://www.kgieworld.sg/research/18ed
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@kgisg Open / Comment

2021-08-30 03:45:04 TRADING IDEAS: HONG KONG
30 August 2021

CNOOC Limited (883 HK): A dirt cheap stock at 6x PE and 10% dividend yield
BUY Entry – 7.7 Target – 8.5 Stop Loss – 7.5

Nexteer Automotive Group Limited (1316 HK): A value stock for a weak market
BUY Entry – 8.4 Target – 9.4 Stop Loss – 7.9


Read More: https://www.kgieworld.sg/research/30aughk
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@kgisg Open / Comment

2021-08-30 03:30:05 TRADING IDEAS: SINGAPORE
30 August 2021

Geo Energy (GERL SP): Cash generating machine
BUY Entry – 0.22 Target – 0.42 Stop Loss – 0.20

Fortress Minerals Limited (FMIL SP): Rebounding in tandem with iron ore
BUY Entry – 0.50 Target –0.59 Stop Loss – 0.46


Read More: https://www.kgieworld.sg/research/30augsg
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@kgisg Open / Comment