Retail Market Monitor: Comprehensive Analysis of Listed Companies

UOB Kay Hian Private Limited – November 4, 2024

Market Overview

US stocks closed higher on Friday, driven by gains in the consumer discretionary, information technology, and healthcare sectors. The Dow Jones gained 0.69%, the S&P 500 rose 0.41%, and the NASDAQ Composite advanced 0.80%. However, falling stocks outnumbered advancing ones on the NYSE and Nasdaq Stock Exchange. In Singapore, the FSSTI index fell 3.45 points to 3,555.43 with mixed performances among the top active stocks.

Singapore Company Results

Far East Hospitality Trust (FEHT SP)

3Q24: Healthy Seasonal Strength Driven by Chinese Tourists

Far East Hospitality Trust (FEHT) reported a positive 3Q24 performance, driven by an influx of Chinese tourists. The RevPAR for FEHT’s hotels grew by 2.8% year-on-year (yoy) and 10.8% quarter-on-quarter (qoq) to S\$154. This growth was attributed to a higher volume of Chinese tourists and improved performance from hotels that exited government contracts.

The serviced residences segment also showed stable contributions with RevPAR rising 2.5% yoy and 6.1% qoq to S\$245. FEHT’s low aggregate leverage of 30.8% provides ample debt headroom for acquisitions both locally and in gateway cities overseas, with a 2024 distribution yield of 6.6%.

Key Financial Metrics:

• Gross Revenue: S\$28.7 million, down 4.8% yoy.
• Hotels Revenue: S\$21.4 million, down 8.2% yoy, with RevPAR at S\$154.
• Serviced Residences Revenue: S\$3.0 million, up 3.0% yoy, with RevPAR at S\$245.
• Commercial Premises Revenue: S\$4.3 million, up 9.9% yoy.
• Net Property Income (NPI): S\$26.2 million, down 6.8% yoy.

The growth in the serviced residences segment was fueled by a higher mix of short-stay guests, resulting in a 3.3% yoy increase in ADR to S\$278. Demand was mainly from the services, banking & finance, electronics & manufacturing, and oil & gas industries. Commercial premises also saw a 9.9% yoy increase in revenue due to higher retail occupancies and rental rates.

FEHT is completing early refinancing of term loans of S\$157 million ahead of maturity in 2025 and stands to benefit from anticipated rate cuts. The average cost of debt remained stable at 4.1%, with 40% of total debt hedged to fixed interest rates.

The Singapore Tourism Board (STB) expects international visitor arrivals to reach 15-16 million in 2024, with tourism receipts projected to be S\$26.0-27.5 billion. FEHT is well-positioned to benefit from this recovery, with debt headroom of S\$415 million for acquisitions.

Valuation and Recommendation: Maintain BUY with a target price of S\$0.82 based on DDM (cost of equity: 7.25%, terminal growth: 2.8%).

Singapore Technical Analysis

SATS (SATS SP)

Trading Buy

SATS is trading above the cloud, maintaining its uptrend. The conversion and base lines remain in a bullish crossover, and the MACD is bullish and rising, suggesting a potential upside target of S\$4.30. The protective stop is set at S\$3.85. This trade idea should be initiated if the stock hits the entry price range of S\$3.95-3.96 within three trading days.

Top Glove Corp (TOPG SP)

Trading Buy

Top Glove Corp continues to show a bullish outlook as it trades above the cloud. The bullish conversion and base lines crossover, along with a rising MACD, suggest a potential upside target of S\$0.365. The protective stop is set at S\$0.310. This trade idea should be initiated if the stock hits the entry price range of S\$0.320-0.325 within three trading days.

Top Gainers and Losers

Top Gainers

• Olam Group: Price rose by 14.0% to S\$1.22 with a 5-day average daily turnover (ADT) of S\$1.2 million.
• Bumitama Agri: Price increased by 7.1% to S\$0.83 with a 5-day ADT of S\$0.6 million.
• First Resources: Price up by 4.1% to S\$1.52 with a 5-day ADT of S\$2.1 million.
• Hongkong Land Holdings: Price grew by 3.9% to S\$4.48 with a 5-day ADT of S\$40.4 million.
• Top Glove Corp: Price advanced by 3.2% to S\$0.33 with a 5-day ADT of S\$0.4 million.

Top Losers

• Thai Beverage: Price dropped by 5.7% to S\$0.50 with a 5-day ADT of S\$12.7 million.
• Nio Inc-Class A: Price fell by 4.5% to S\$5.25 with a 5-day ADT of S\$2.2 million.
• Wilmar International: Price declined by 3.8% to S\$3.08 with a 5-day ADT of S\$11.5 million.
• Digital Core REIT Management: Price decreased by 3.2% to S\$0.61 with a 5-day ADT of S\$3.9 million.
• iFAST Corp: Price down by 2.1% to S\$7.34 with a 5-day ADT of S\$7.0 million.

Key Indices Performance

Key Indices:

• DJIA: 42,052.2, down 0.7% for the month, up 11.6% year-to-date (YTD).
• S&P 500: 5,728.8, down 0.4% for the month, up 20.1% YTD.
• FTSE 100: 8,177.2, down 1.2% for the month, up 5.7% YTD.
• AS30: 8,379.7, down 0.4% for the month, up 7.0% YTD.
• CSI 300: 3,890.0, down 3.2% for the month, up 13.4% YTD.
• FSSTI: 3,555.4, down 0.9% for the month, up 9.7% YTD.
• HSCEI: 7,342.7, down 10.0% for the month, up 27.3% YTD.
• HSI: 20,506.4, down 9.8% for the month, up 20.3% YTD.
• JCI: 7,505.3, up 0.1% for the month, up 3.2% YTD.
• KLCI: 1,604.0, down 1.6% for the month, up 10.3% YTD.
• KOSPI: 2,542.4, down 1.1% for the month, down 4.3% YTD.
• Nikkei 225: 38,053.7, down 1.5% for the month, up 13.7% YTD.
• SET: 1,464.2, up 1.4% for the month, up 3.4% YTD.
• TWSE: 22,780.1, up 2.1% for the month, up 27.0% YTD.
• BDI: 1,378, down 28.5% for the month, down 34.2% YTD.
• CPO (RM/mt): 4,735, up 13.8% for the month, up 27.4% YTD.
• Brent Crude (US\$/bbl): 73, down 0.6% for the month, down 5.1% YTD.

Top Trading Turnover Companies

• DBS Group Holdings: Price S\$38.75, up 0.2%, with a 5-day ADT of S\$156.0 million.
• Oversea-Chinese Banking Corp: Price S\$15.18, down 0.1%, with a 5-day ADT of S\$76.3 million.
• United Overseas Bank: Price S\$32.10, down 0.2%, with a 5-day ADT of S\$72.1 million.
• CapitaLand Integrated Commer: Price S\$2.03, up 0.5%, with a 5-day ADT of S\$62.3 million.
• Singapore Telecommunications: Price S\$3.10, down 1.0%, with a 5-day ADT of S\$60.5 million.