Latest news with #KayHian
Yahoo
29-05-2025
- Business
- Yahoo
With US backing down and $5 billion from MAS to be deployed, UOB Kay Hian raises end-2025 target for STI to 4,054 points
'It will be critical for the authorities to ensure that the $5 billion is not a one-off' With trade tensions easing somewhat, and with the central bank likely to shortlist managers for the $5 billion fund to boost the local bourse, things are looking cheerier for the Singapore market, which is marked by "quality defensive names" with valuations not quite "stretched". "In light of the US backing down from a full-scale tariff war with China, as well as the injection of liquidity from the MAS in 2H25, we have become more bullish on the Singapore market," suggests a team of UOB Kay Hian analysts led by Adrian Loh. As such, UOB Kay Hian has raised its year-end Straits Times Index forecast from 3,720 points to 4,054 points, based on 1.2% earnings growth for the index stocks and implies a PE multiple of 13.4x. Top large caps favoured by UOB Kay Hian include CapitaLand Ascott REIT, CapitaLand Integrated Commercial Trust C38u, First Resources Eb5, Keppel, Oversea-Chinese Banking Corp, SATS, Sea, Sembcorp Industries U96, Singapore Telecommunications Z74 and Yangzijiang Shipbuilding. Now, what might be of equal interest is that of smaller cap counters. UOB Kay Hian figures that fund managers given their share of the $5 billion mandate will start to deploy in the last quarter of the year. The list of smaller cap names flagged by UOB Kay Hian includes: Centurion Corp, for its inelastic demand for its accommodation assets, backed by construction spending tailwinds in Singapore. ChinaSunsine Market, the global leader in producing rubber accelerator, whose net cash is equivalent to 72% of its market cap. ComfortDelGro, which operates a defensive business model with strong overseas growth while giving an attractive yield of 6.1%. CSE Global, whose strong order book of $616 million provides healthy forecast revenue growth to 2027. Food Empire, which is expanding strongly in its various key markets including Vietnam and Central Asia while keeping good cost control. Frencken Group, for its stable to higher revenue forecasts in all segments, amid a brighter outlook for the semiconductor market. Hong Leong Asia, which is riding stronger construction demand across Singapore & Malaysia. Oiltek International, for its asset-light business model with high ROE, while capturing exposure to sustainable aviation fuel PropNex, which is seeing a favourable property market outlook this year, with prospects of a special dividend and "strong" upcoming 1HFY2025 earnings. Sheng Siong Group, which is generating volume growth via six new outlet openings in 2025. SIA Engineering, which is seeing limited impact from the trade war, benefiting from strong demand and trading at a level with net cash equal to 23% of its market cap. Valuetronics, with net cash at more than 73% of its market cap while capturing the AI boom. However, UOB Kay Hian warns that despite the impending moves, there are some issues that got to be addressed. For one, there was an absence of any role for market makers which UOB Kay Hian says is integral in maintaining liquidity and efficiency in a well-functioning stock market. "Going forward, it will be critical for the authorities to ensure that the $5 billion is not a one-off and that as the market grows, it will be able and willing to continue to lend its support," says UOB Kay Hian. See Also: Click here to stay updated with the Latest Business & Investment News in Singapore Brokers' Digest: CSE Global, Geo Energy, Venture Corp, Prime US REIT Singapore maintains previously lowered full-year GDP forecast at 0 - 2% on 'significant uncertainty' ahead Analysts increase DBS's TPs, issue upgrades after 1QFY2025 earnings surpass estimates Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
Business Times
06-05-2025
- Business
- Business Times
Malaysia gains US glove share as China hit by tariffs; Top Glove to benefit
[KUALA LUMPUR] Malaysia is poised to claim more than half of the US' rubber glove market this year, with its share expected to rise to 55 per cent – up from just over 47 per cent in 2024 – on the back of fresh US tariffs on Chinese-made gloves, said a top official. Investment, Trade and Industry Minister Tengku Zafrul Aziz said on Tuesday (May 6) that the change is opening doors for Malaysian exporters, as US buyers pivot to tariff-free and cost-competitive suppliers. Speaking at a quarterly briefing, he said that the country's glove industry – already the world's largest – stands to gain significantly from ongoing trade realignments. Washington's higher tariffs on Chinese products are also creating opportunities for other Malaysian exports, he added. Malaysia exported RM15.4 billion (S$4.7 billion) worth of rubber gloves in 2024, and its industry players are 'competitive and ready to meet increased demand', the minister noted. Its shipments to the US amounted to more than RM7.4 billion, making Malaysia one of the top five rubber exporters to the country. The US glove market is expected to reach nearly US$4.2 billion by 2030, said Malaysia's Ministry of Investment, Trade and Industry. UOB Kay Hian estimates that as at December 2024, Chinese gloves made up 42 per cent of US medical glove imports, just behind Malaysia's 44 per cent share. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up With US glove consumption projected to climb to between 90 billion and 100 billion pieces in 2025 – up from 70 billion to 75 billion in 2023 – the gap is expected to widen in Malaysia's favour as tariffs push demand away from China. According to an earlier report by The Straits Times, China-made gloves were priced around US$15 per 1,000-piece carton. Meanwhile, Malaysian gloves were sold at a range between US$17 and US$18 per carton. On Apr 2, the US imposed a 24 per cent tariff targeting Malaysian goods, alongside a broader 10 percent duty on imports from all countries. While the Malaysia-specific tariff is under a 90-day suspension for negotiations, the global levy continues. In contrast, tariffs on Chinese goods remained at 145 per cent. Malaysia is home to some of the world's largest rubber glove manufacturers, including Top Glove, Hartalega, Kossan Rubber Industries, and Supermax Corp. Top Glove commands a substantial global market share, estimated at around 25 per cent. Meanwhile, Tengku Zafrul said that a government support package for industries affected by global trade shifts and reciprocal tariffs was being finalised and would be announced by July. 'The priority now is to engage with affected companies to assess the supply chain impact,' he noted. The package, announced in part by Prime Minister Anwar Ibrahim on Monday, includes an additional RM1 billion in guarantees under the Business Financing Guarantee Scheme to help small and medium-sized exporters access commercial loans.
