Comprehensive Company Analysis by UOB Kay Hian – December 3, 2024

Delve into an in-depth exploration of the key players in the market as analyzed by UOB Kay Hian. This comprehensive analysis covers a wide array of companies, providing insights and recommendations to guide investment decisions.

Singapore Post (SPOST)

Singapore Post has announced a strategic move to divest its Australian business, aiming to enhance shareholder value. The divestment, involving assets such as Freight Management Holdings and CouriersPlease, is valued at an enterprise value of A\$1.02 billion. This transaction is expected to generate significant interest cost savings and potentially lead to a net cash position for SPOST. The cash proceeds are anticipated to deleverage the balance sheet, with half being used to repay Australian Dollar-denominated debt. Despite the surprise full divestment, the transaction exceeded valuation expectations. Looking forward, SPOST plans to utilize the remaining cash for M&A opportunities, although there might be lesser cash available for debt repayment or a special dividend. The company maintains a BUY recommendation with a target price of S\$0.72, based on an SOTP valuation.

CR Mixc Lifestyle

CR Mixc Lifestyle has demonstrated strong management capabilities through successful operations and innovative models in projects like the Shenzhen Talent Park and Shenzhen Universiade Sports Centre. Despite facing macroeconomic uncertainties, the company has seen an improvement in same-store sales growth in 4Q24. External expansion of non-commercial third-party projects is expected to bring substantial annualized order value. However, a cautious approach is maintained towards M&A activities. The company is trading at 14.7x 2025F PE, with a target price of HK\$32.15. The recommendation remains a BUY.

China Resources Land (CR Land)

China Resources Land continues to show positive growth in property sales and same-store retail sales. The Dream City Project in Guangming is a testament to its robust sales performance. Management remains optimistic about property sales margins in 2025, especially for new projects in core cities. Same-store sales growth for CR Mixc malls rebounded in October 2024, outperforming national retail sales. Despite a cautious outlook on China’s consumption growth, CR Land maintains a BUY recommendation with a target price of Rmb32.40, derived from an SOTP valuation model.

Regina Miracle

Regina Miracle, a leader in the intimate wear manufacturing industry, continues to innovate with technologies like milling, moulding, and bonding. The company has expanded its production in Vietnam, contributing significantly to its revenue. The ongoing capacity relocation to Zhaoqing aims to improve production efficiency. Regina Miracle expects revenue growth in FY25, driven by innovation and order growth in sports products. The company maintains a dividend policy of no less than 30% payout. Trading at 9.3x one-year forward PE, Regina Miracle is positioned for growth.

Crystal International

Crystal International targets record-high revenue in 2024 and anticipates solid growth in 2025. The company focuses on vertical integration, strong R&D capabilities, and enhanced automation to drive wallet share gains from key customers. Despite potential risks from US tariffs, Crystal is exploring expansion opportunities in Asia. The company maintains a BUY recommendation with a target price of HK\$5.12, based on 9.2x 2024F PE.

CSCEC

CSCEC is set to benefit from a Rmb10 trillion debt swap plan approved by the NPC. This fiscal support is expected to drive infrastructure orders, with a forecasted growth of 15-20% yoy. The company is also optimistic about its property business in 2025, with expectations of single-digit growth in housing construction orders. CSCEC maintains a BUY recommendation with a target price of Rmb6.61, based on the SOTP valuation method.

Desay SV

Desay SV’s earnings are poised for growth driven by the intelligentisation of vehicles. The company boasts a strong portfolio of smart cockpit domain controllers and ADAS solutions. It maintains a BUY recommendation with a target price of Rmb190.00, based on 40x 2025F PE.

Geely Automobile

Geely is on the cusp of an earnings escalation due to robust product line-ups and export growth. New EV models have received strong market reception. Geely retains a BUY recommendation with a target price of HK\$23.00, pegged to a 20x three-year historic mean one-year forward PE.

Hansoh Pharma

Hansoh Pharma continues its growth trajectory, supported by innovative product expansion. The company’s revenue is bolstered by a strong pipeline of innovative drugs, including Ameile, which targets significant sales growth by 2026. Hansoh Pharma is recommended as a BUY with a target price of HK\$29.00, based on SOTP valuation.

Meituan

Meituan is positioned to benefit from easing competition and increased market share in the FD segment. The company is expected to see substantial revenue growth and improved EBIT margins. Meituan maintains a BUY recommendation with a target price of HK\$222.00, implying a 22.5x 2025F PE.

China Mengniu Dairy

China Mengniu Dairy is expected to benefit from a recovery in liquid milk sales. The company focuses on operational efficiency, targeting a higher dividend payout within two years. The target price for Mengniu is HK\$23.50, with a BUY recommendation.

Sands China

Sands China expects its GGR recovery to accelerate post-property renovations. The company plans to resume dividend payouts in 2025. Sands China holds a BUY recommendation with a target price of HK\$28.60, based on 12.0x 2024F EV/EBITDA.

Tencent

Tencent is poised for growth with its strong pipeline of games and advertising revenue from the WeChat ecosystem. The company is trading below its historical mean, making it an attractive buy. Tencent retains a BUY recommendation with a target price of HK\$570.00.

Trip.com

Trip.com is set to capitalize on strong international travel demand. The company anticipates revenue growth driven by outbound tourism and international travel. Trip.com is recommended as a BUY with a target price of HK\$640.00, implying a 26.4x 2025F PE.

Sinopharm

Sinopharm faces challenges with weaker-than-expected results and policy uncertainties. Despite potential cost reductions due to a lower interest rate environment, the company maintains a SELL recommendation with a target price of HK\$18.00.