Market Insights and Company Analysis

Broker: Maybank Research Pte Ltd

Date: 19 February 2025

Heeton Holdings: A Positive Turnaround

Heeton Holdings is poised to report a significant improvement in its profit after tax for the FY24 results, marking a notable shift from a net loss recorded in the same timeframe the previous year. This upswing is attributed to improved business performance alongside one-off gains from the disposal of subsidiaries and property, plant, and equipment. Analysts view this as a positive sign for the company’s future performance.

NoonTalk Media: New Contracts to Boost Earnings

NoonTalk Media has recently secured a SGD0.9 million contract with an independent third party to provide stage and programme management services. The completion of this contract is anticipated on or before the end of April 2025, which is expected to positively influence the company’s earnings for the current FY25. This development signifies the company’s growing footprint in its sector.

Soon Lian Holdings: A Strong Recovery in Profitability

Soon Lian Holdings is set to pivot from a net loss to profitability, primarily driven by a surge in revenue and gross profit. The company has reported robust demand for its products within the precision engineering segment since the beginning of 2024, a trend spurred by the global recovery of the semiconductor industry. This resurgence is fueled by increasing demand for artificial intelligence applications, high-performance computing, and inventory replenishment. The outlook for Soon Lian Holdings is overwhelmingly positive, with analysts expressing confidence in its recovery trajectory.

DBS: Leadership Changes and Strategic Reorganization

DBS has announced further leadership appointments, following a series of changes initiated the previous week. Chen Ze Ling will take over as Group Head of Corporate and SME Banking effective 1 April, succeeding Koh Kar Siong, who has been appointed the new Head of Group Audit. Chen, with over 20 years of experience at DBS, previously held senior roles in the Institutional Banking division. Additionally, Welson Jamin will be stepping in as Group Head of Operations, also effective 1 April. Jamin brings with him 25 years of experience, having led operations across 14 locations. These strategic appointments are seen as steps towards enhancing the bank’s operational effectiveness and customer service capabilities.

Q&M Dental: Governance Challenges Ahead

Q&M Dental has convened an extraordinary general meeting (EGM) for its associate company, Aoxin Q&M Dental, aiming to remove executive director Dr Ong Siew Hwa. This decision arises from the fact that Acumen Diagnostics, managed by Dr Ong, has ceased operations due to an expired clinical laboratory license. Q&M has indicated that Dr Ong has not resigned from her position as a director of Aoxin, despite obligations under her service agreement. This governance challenge reflects broader issues within the company that stakeholders will be watching closely.

ASEAN Food Delivery Market: Shifting Dynamics

The food delivery landscape in ASEAN is witnessing notable shifts. According to Momentum Works, the gross merchandise value (GMV) growth for food delivery in 2024 has accelerated to 13% year-on-year, a significant increase compared to the modest 5% growth in 2022/23. Vietnam leads the growth at 26%, followed by Indonesia at 16%. ShopeeFood has gained market share, increasing by 2 percentage points to 12%, while competitors Grab and Gojek have seen declines in their market shares. In light of these trends, analysts predict that Grab may not meet expected GMV targets for the fourth quarter.

Singapore Post Ltd: Optimism Amidst Transition

Singapore Post Ltd appears to be stabilizing following the appointment of a new COO and CFO. The company has affirmed its ongoing strategy, and anticipation builds around an upcoming extraordinary general meeting (EGM) to approve the sale of its Australian business. Following this, approval from the Australian government is expected, alongside the sale of Famous Holdings. Analysts forecast a significant special dividend during the FY25 results in May, maintaining a BUY recommendation with a target price of SGD0.77.