Crystal International (Greater China)
The outlook for Crystal International remains positive with stronger order visibility extending into 2025. We reiterate our BUY rating and have raised the target price to HK\$5.12. Trading at 6.8x one-year forward PE, Crystal International is about 0.3SD below its historical mean of 8.0x during 2018-2024.
Revenue forecasts have been updated with new projections for 2024F, 2025F, and 2026F at US\$2,466m, US\$2,736m, and US\$3,020m respectively. The company’s diverse product lines including Lifestyle Wear, Denim, Intimate, Sweater, and Sportswear and Outdoor Apparel are expected to contribute significantly to revenue growth. The capacity distribution across regions shows Vietnam leading with 60%, followed by China at 15%, Cambodia at 10%, Bangladesh at 10%, and Sri Lanka at 5%.
Indofood Sukses Makmur (Indonesia)
Indofood Sukses Makmur (INDF) posted a strong 3Q24 core NPAT of Rp2,627b, up 9.2% yoy and 6.4% qoq. The 9M24 core NPAT stood at Rp8,296b, reflecting a 17.4% yoy increase. Indofood CBP, a key subsidiary, also reported robust performance with a 2.8% EBIT growth in 3Q24. With La Nina likely to continue, the agribusiness segment is expected to maintain its strong performance into the second half of the year.
Operating profit is projected to grow significantly from a reported loss in previous years to positive figures in the future. The company’s revenue forecast for 2024 and 2025 stands at Rp112,265b and Rp123,384b respectively, with net profits expected to follow suit. The target price has been set at Rp12,000, indicating a potential upside of 52.4% from the current level.
Indofood CBP (Indonesia)
Indofood CBP (ICBP) reported a 3Q24 core NPAT of Rp2,407b, marking a 5.1% yoy increase. The 9M24 core NPAT grew by 15.3%, driven by strong volume growth in noodles both domestically and internationally. The company’s performance is bolstered by stable prices and declining raw material costs, which have allowed for margin expansion.
Key financials project a steady increase in revenue, EBITDA, and net profit over the next few years, with 2024F revenue expected at Rp74,168b. The target price for ICBP has been pegged at Rp15,000, suggesting a 23.0% upside. The company remains a BUY due to its attractive valuations and growth potential.
Fraser & Neave Holdings (Malaysia)
Fraser & Neave Holdings (FNH) faced a challenging 4QFY24 with earnings falling short of expectations. Despite lackluster sales and a contraction in Thailand margins, the company remains optimistic about its future, particularly with the upcoming dairy project. FNH reported a 4QFY24 core net profit of RM89.2m, down 28.8% qoq and 33.7% yoy.
The company’s revenue for FY24 stood at RM5,245.6m with projections for future growth. Despite the recent setbacks, FNH’s attractive valuations and potential growth from its dairy project keep it a BUY with a revised target price of RM36.30.
CapitaLand Integrated Commercial Trust (Singapore)
CapitaLand Integrated Commercial Trust (CICT) is consolidating its dominance in Singapore’s retail scene. The company reported stable performance in 3Q24 with a positive rental reversion of 7.8% for its retail portfolio. The office portfolio also maintained stable occupancy with a positive rental reversion of 11.7% in 9M24.
CICT’s key financials show a steady increase in net turnover and EBITDA over the next few years, with 2024F revenue projected at S\$1,600m. The company remains a strong BUY with a target price of S\$2.59, indicating its potential for growth and dominance in the market.
NetLink NBN Trust (Singapore)
NetLink NBN Trust reported higher 2QFY25 revenue (+2.5% yoy) but lower EBITDA and PATMI, slightly missing expectations. The softer bottom-line results were due to higher operating costs and one-off expenses. Despite this, NetLink remains a high-yielding, safe-haven stock with stable revenue streams and operating cash flows.
The company declared a higher 1HFY25 final dividend of 2.68 S cents/share, implying an annualized dividend yield of around 5.9%. With a stable financial outlook and potential for growth, NetLink maintains a BUY rating with a target price of S\$0.98.
Wilmar International (Singapore)
Wilmar International is poised for a better 4Q24, though lower yoy. The company expects gradual growth in its food products segment, driven by improved sales volumes and lower raw material costs. The feed and industrial products segment is also expected to see better performance with improved refining margins and positive soybean crushing margins.
Wilmar’s key financials show a steady increase in revenue and EBITDA over the next few years, with 2024F revenue projected at US\$69,216m. Despite the challenges, the company remains a HOLD with a target price of S\$3.00, reflecting its potential for recovery and growth.
IRPC (Thailand)
IRPC reported a significant net loss of Bt4.9b in 3Q24, in line with expectations. Despite maintaining a healthy utilisation rate of 92%, the company’s market gross integrated margin remained below breakeven. The weak performance was due to softer gasoline spreads and lower demand from China.
Looking ahead, IRPC’s performance is expected to recover in 4Q24, driven by higher diesel and fuel oil spreads. The company’s financial outlook shows potential for recovery with a target price of Bt1.70, indicating a BUY recommendation.
I-TAIL Corporation (Thailand)
I-TAIL Corporation reported 3Q24 core earnings of Bt1,029m, up 57.6% yoy, but flattish qoq. The impressive earnings growth was driven by top-line and gross margin improvements. The company’s financial outlook for 2024 shows potential for significant growth with projected revenue of Bt18,563m and core profit of Bt4,181m.
Despite a less exciting 4Q24, I-TAIL remains a strong BUY with a target price of Bt28.00, reflecting its potential for growth and strong market position.
