Latest news with #Sum
Business Times
16-05-2025
- Business
- Business Times
DBS Group Research upgrades SIA Engineering to a buy on ‘compelling growth,' raises target price
[SINGAPORE] DBS Group Research upgraded SIA Engineering's (SIAEC) stock to a 'buy' from a 'hold', citing limited exposure to tariff-related factors, growth ahead, among other factors. The group's price target was increased to S$2.80 from S$2.50. '(The upgrade reflects) SIA contract repricing upside, compelling growth narrative, and limited exposure to trade-related disruptions,' the research house said its note on Thursday (May 15). Given its parent company's strategy to maintain a young, technologically advanced fleet of airplanes, SIAEC is usually quick to gain expertise in maintaining new aircraft types and can win third-party business relating to these new age aircraft, DBS Group Research noted. It has the 'technology edge and strong captive business volumes owing to SIA parentage; (and is) well-positioned for long-term MRO (maintenance, repair and operations) demand growth, given its established partnerships with leading OEMs (original equipment manufacturers)', analyst Jason Sum wrote. The group's strategic partnerships with leading OEMs such as Safran and Rolls-Royce position it favourably for long-term growth in services, the note added. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For the full financial year 2024/25, SIAEC's net profit grew 43.8 per cent to S$139.6 million. It said the increase was supported by stable growth in the demand for aircraft MRO. The group's total revenue for the year increased by 13.8 per cent to S$1.2 billion, from S$1.1 billion. While group expenditure also grew, it rose at a slower pace of 12.7 per cent, with the increase largely due to higher manpower costs and increased material consumption. SIAEC is poised to capitalise on burgeoning air travel demand in the region, said Sum. In addition to its own operations in Singapore, Japan and the Philippines, SIAEC's broader network of associates and joint ventures is primarily concentrated in Asia, positioning the group's earnings for growth alongside the normalisation of traffic in the region. Furthermore, the group's facilities are better suited to servicing widebody aircraft used for longer distance international flights. Over the next few years, SIAEC has multiple levers in place to drive growth, including developing new engine capabilities and base maintenance operations in Subang this year, according to the note. Additionally, the group was recently selected to be Air India's strategic MRO partner and is poised to capitalise on the promising long-term growth outlook of the Indian aviation market. 'This reflects our upward earnings revision and greater conviction in the group's trajectory toward stronger core operating performance,' said Sum. 'We also favour its relative insulation from tariff-related risks, which reinforces the quality of its earnings outlook,' he added. SIAEC shares were trading at S$2.44 at 4 pm on Friday, up 1.3 per cent or S$0.03.
Business Insider
15-05-2025
- Business
- Business Insider
Genting Singapore (GIGNF) Receives a Buy from DBS
DBS analyst Jason Sum maintained a Buy rating on Genting Singapore (GIGNF – Research Report) today and set a price target of S$0.95. The company's shares closed last Friday at $0.52. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Sum is a 4-star analyst with an average return of 9.4% and a 57.69% success rate. Sum covers the Industrials sector, focusing on stocks such as ST Engineering, COSCO SHIPPING Holdings Co, and Airbus Group SE. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Genting Singapore with a $0.78 average price target. GIGNF market cap is currently $6.86B and has a P/E ratio of 14.50.
Borneo Post
13-05-2025
- Business
- Borneo Post
Session highlights growing role of Sarawak SMEs in driving state's sustainability, hydrogen ambitions
Dr Aaron Sum KUCHING (May 13): Sarawak's small and medium enterprises (SMEs) are playing a growing role in driving the state's sustainability and hydrogen ambitions, with two-thirds already implementing environmental, social, and governance (ESG) practices. Alliance Bank Malaysia Berhad group chief strategy and transformation officer Dr Aaron Sum said 62 per cent of SMEs surveyed indicated familiarity with ESG principles, signalling growing awareness and recognition of sustainable business practices. 'This is the first time we've had concrete data to gauge ESG maturity among Sarawak SMEs, and the momentum is very encouraging,' he said during a plenary session at the Hydrogen Economy Forum (H2EF) here today. The research, conducted in collaboration with Alliance Bank, UN Global Compact, and Monash University, found that 44 per cent of SMEs have integrated ESG into their business strategies, while another 22 per cent have begun implementing ESG on an ad hoc basis. Among non-adopters, 60 per cent plan to begin within two years, many driven by innovation and customer demand from overseas markets. Sum underscored that Sarawak's hydrogen strategy is not only an energy transition but a broader ESG-led transformation. 'With 70,000 SMEs forming the economic backbone of the state, their participation is critical in ensuring a just and inclusive transition.' However, he shared that key challenges remain as many SMEs still face obstacles such as limited funding, lack of technical expertise, and unclear or fragmented sustainability guidelines. To address this, Alliance Bank has launched a simplified online ESG diagnostic tool in collaboration with UN Global Compact, providing tailored action plans and peer benchmarks for SMEs. In addition, the bank has linked financing rates to a company's ESG maturity profile, offering more favourable terms to businesses demonstrating stronger climate performance. 'We've already deployed 50 per cent of our RM1 billion climate-inclusive financing allocation for Sarawak SMEs,' said Sum. The study also identified key ESG focus areas for local SMEs, including waste management, resource efficiency, and digital governance. He added that nearly half of respondents are also prioritising social responsibility efforts, and emphasised the importance of continued support, training, and capacity building to sustain the current momentum. 'This puts Sarawak on strong footing as we align economic growth with sustainable development,' he said. Alliance Bank Dr Aaron Sum hydrogen economy small and medium enterprises
Business Times
09-05-2025
- Business
- Business Times
Weakening greenback to boost Singapore firms with US-dollar debt and costs
[SINGAPORE] Asian currencies have rallied against the US dollar on the back of concerns that US President Donald Trump's tariff war will hurt the world's largest economy. But market watchers warn that the Singapore dollar's strength against the greenback could cut both ways for companies here. This week, the Singapore dollar rose to trade at above 1.29 against the greenback for the first time since September 2024. In the year to date up to May 7, the Singapore currency has appreciated about 5.4 per cent against the US dollar. This would typically be positive for Singapore companies with major expenditures priced in US dollars, as they would enjoy lower costs. For example, airlines could benefit most from a weaker greenback, said DBS Group Research analyst Jason Sum. This is because their major cost components – such as fuel, aircraft leases, and third-party maintenance, repair and overhaul – are US dollar-denominated. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For airlines, fuel is the top cost item and typically accounts for about 30 per cent of their expenditures. However, Singapore Airlines (SIA) is not expected to benefit from a stronger Singapore dollar. Citing the group's FY2024 annual report, Sum said that SIA's hedging policies would result in a negative S$1.6 million impact on its pre-tax profit for every 1 per cent strengthening of the Singapore dollar against the US currency. The national carrier will post its financial results for FY2025 ended March on May 15. Meanwhile, freight handler Sats could report a boost in its pre-tax profit arising from an exchange rate in Singapore's favour because it borrowed in US dollars. Sats, which generates about a third of its business from the Americas, counts the US as its largest contributor after it acquired air cargo handler Worldwide Flight Services. Although natural hedges are in place for Sats as costs offsets revenue in the same currency, for every 1 per cent rise in the Singapore dollar against the greenback, the group's pre-tax profit would still rise by S$4.3 million, based on the group's FY2024 annual report. This is primarily due to translation gains on the US dollar-denominated debt for Sats, Sum noted. Sats' FY2025 results are slated to be published on May 23. Sats issued US$100 million of 4.578 per cent fixed-rate notes in April under its US$3 billion multi-currency debt issuance programme. Other companies, such as ST Engineering , are not expected to see a significant impact from foreign exchange movement, even as about 30 per cent of its order book is denominated in the currency. Around 25 per cent of ST Engineering revenue is from the United States, noted Paul Chew, head of research at Phillip Securities. According to Chew, a weaker US dollar will be a marginal negative for the company, especially with their consistent use of hedging. 'ST Engineering does not even disclose foreign exchange sensitivity. A reasonable change in the exchange rates would not result in any significant impact on its results.' Shekhar Jaiswal, head of the equity research at RHB, noted that ST Engineering's earnings impact is likely to be insignificant, as its currency exposure is managed actively through its treasury in addition to natural hedges. ST Engineering will deliver its update for FY2025 first quarter ended March on May 9. Christopher Wong, strategist for foreign exchange at OCBC, said that the US dollar continues to trade near recent lows to Singapore dollar as markets re-assess the tariff developments and a softer greenback. 'We project USD/SGD to trade towards 1.2890 at end-2025 and 1.2820 by mid-2026,' Wong pointed out.
Business Times
08-05-2025
- Business
- Business Times
Weakening greenback to benefit Singapore firms with significant exposure to debts, costs in US dollar
[SINGAPORE] Asian currencies have rallied against the US dollar on the back of concerns that US President Donald Trump's tariff war will hurt the world's largest economy. But market watchers warn that the Singapore dollar's strength against the greenback could cut both ways for companies here. This week, the Singapore dollar rose to trade at above 1.29 against the greenback for the first time since September 2024. In the year to date up to May 7, the Singapore currency has appreciated about 5.4 per cent against the US dollar. This would typically be positive for Singapore companies with major expenditures priced in US dollars, as they would enjoy lower costs. For example, airlines could benefit most from a weaker greenback, said DBS Group Research analyst Jason Sum. This is because their major cost components – such as fuel, aircraft leases, and third-party maintenance, repair and overhaul – are US dollar-denominated. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For airlines, fuel is the top cost item and typically accounts for about 30 per cent of their expenditures. However, Singapore Airlines (SIA) is not expected to benefit from a stronger Singapore dollar. Citing the group's FY2024 annual report, Sum said that SIA's hedging policies would result in a negative S$1.6 million impact on its pre-tax profit for every 1 per cent strengthening of the Singapore dollar against the US currency. The national carrier will post its financial results for FY2025 ended March on May 15. Meanwhile, freight handler Sats could report a boost in its pre-tax profit arising from an exchange rate in Singapore's favour because it borrowed in US dollars. Sats, which generates about a third of its business from the Americas, counts the US as its largest contributor after it acquired air cargo handler Worldwide Flight Services. Although natural hedges are in place for Sats as costs offsets revenue in the same currency, for every 1 per cent rise in the Singapore dollar against the greenback, the group's pre-tax profit would still rise by S$4.3 million, based on the group's FY2024 annual report. This is primarily due to translation gains on the US dollar-denominated debt for Sats, Sum noted. Sats' FY2025 results are slated to be published on May 23. Sats issued US$100 million of 4.578 per cent fixed-rate notes in April under its US$3 billion multi-currency debt issuance programme. Other companies, such as ST Engineering , are not expected to see a significant impact from foreign exchange movement, even as about 30 per cent of its order book is denominated in the currency. Around 25 per cent of ST Engineering revenue is from the United States, noted Paul Chew, head of research at Phillip Securities. According to Chew, a weaker US dollar will be a marginal negative for the company, especially with their consistent use of hedging. 'ST Engineering does not even disclose foreign exchange sensitivity. A reasonable change in the exchange rates would not result in any significant impact on its results.' Shekhar Jaiswal, head of the equity research at RHB, noted that ST Engineering's earnings impact is likely to be insignificant, as its currency exposure is managed actively through its treasury in addition to natural hedges. ST Engineering will deliver its update for FY2025 first quarter ended March on May 9. Christopher Wong, strategist for foreign exchange at OCBC, said that the US dollar continues to trade near recent lows to Singapore dollar as markets re-assess the tariff developments and a softer greenback. 'We project USD/SGD to trade towards 1.2890 at end-2025 and 1.2820 by mid-2026,' Wong pointed out.
