Americana’s Saudi-UAE IPO draws US$105b in Orders | 25 November 2022 | Daily Morning Note

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The Middle Eastern operator of KFC and Pizza Hut outlets drew orders worth US$105 billion for its initial public offering (IPO), raising US$1.8 billion for its shareholders in the first-ever dual-listing in Riyadh and Abu Dhabi.

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Key takeaways


Singapore stocks declined modestly on Thursday, even as regional indices rose after Federal Reserve officials showed support for slowing downthe pace of interest rate hikes. The Straits Times Index ended the day down 0.1per cent, or 3.11 points, at 3,252.88.

Singapore News

Integrated marine logistics company Marco Polo Marine on Thursday reported a net profit of S$10.5 million for the second half of the fiscal year ended September, a 19 per cent increase from earnings of S$8.8 million in the year-ago period. No dividend was declared for the period under review, unchanged from the corresponding year-ago period.

Kopernik Global Investors LLC – an investment management company headquartered in Tampa, Florida – has ceased to be a substantial shareholder of local palm oil player Golden Agri-Resources. In a bourse filing on Thursday, the company announced that Kopernik Global Investors had sold some37.3 million shares of Golden Agri via a market transaction at a price ofS$0.2934 apiece on Nov 3.

Keppel Corporation’s offshore and marine arm, Keppel O&M, has received a payment of about US$160 million following the delivery of the first of three jack up rigs to ADNOC Drilling Company. In a press statement on Thursday, Keppel said the three rigs were part of a series of five rigs that Keppel Fels – Keppel O&M’s wholly-owned subsidiary – had been building for Borr Drilling.

US News

Benchmark Brent oil edged lower on Thursday while West Texas Intermediate(WTI) crude held steady, hovering in sight of two-month lows as the level of a proposed G7 cap on the price of Russian oil raised doubts about how much it would limit supply. A bigger-than-expected build in US petrol inventories and widening Covid-19 controls in China also added downward pressure on crude prices.

Gold prices bounced above the key $1,750 an ounce level on Thursday, consolidating gains after minutes of the US Federal Reserve’s latest meeting signalled slower interest rate hikes. Spot gold rose 0.4% to$1,755.73 per ounce by 0321 GMT. U.S. gold futures advanced 0.6% to$1,755.90. Lower rates tend to lift the appeal for bullion in comparison with other interest-bearing assets.

Travelers get a bit of break over the Thanksgiving holiday, since gas prices dropped by 16 cents in the past week, bringing the average price of a gallon in the U.S. to $3.61. That’s well below the summer peak of over $5 for a regular gallon of gas, although as of Wednesday, prices are still 21 cents higher than a year ago, according to the American Automobile Association.

In our recommendation section...

In the recommendation section, Analyst: Jonathan Woo  maintains a BUY on TDCX. Our target price is lowered to US$15.50, and the last close was US$10.52.

We cut our FY23e revenue growth forecasts by 5% due to macroeconomic uncertainty and a pullback in spending by tech companies


TDCX Inc. – Muted by macro uncertainty

Recommendation : BUY (Maintained); TP: US$15.50, Last Close: US$10.52

Analyst: Jonathan Woo

• 9M22 revenue was in line at 73% of our FY22e forecasts. PATMI was above expectations, at 84% of our FY22e forecasts due to higher interest and other operating income.

• The travel and hospitality vertical continues to provide growth tailwinds, returning to pre-pandemic levels with 29% YoY growth for 3Q22.

• We raised our FY22e PATMI by 12% to S$108mn primarily from higher-than-expected interest and other operating income, while keeping FY22e revenue unchanged. However, we cut our FY23e revenue growth forecasts by ~5% due to macroeconomic uncertainty and pullback in spending by tech companies. We maintain a BUY recommendation with a reduced DCF target price of US$15.50 (prev. US$16.39), a WACC of 10.4%, and a terminal growth rate of 3.0%.

For PropertyGuru, Analyst: Maximilian Koeswoyo  downgrades to Accumulate. Our target price is lowered to US$5.30, and the last close was US$4.99.

We cut our FY22e revenue by 6% and PATMI by 24% to account following management guidance of macroeconomic headwinds and increased cost assumptions.

PropertyGuru Group Ltd. - Cooling measures to affect growth

Recommendation: ACCUMULATE (Downgraded); TP: US$5.30, Last Close: US$4.99

Analyst: Maximilian Koeswoyo

• Revenue in line with expectation while earnings missed. 9M22 revenue at 66% of FY22e forecast. 9M22 Adj. EBITDA/net loss came in at 30%/125% of forecasts due to higher than expected employee compensation and other expenses.  

• Vietnam revenue spiked 161% YoY while Malaysia grew 49%. Singapore remains the largest market, growing 28%. ARPA/ARPL increased by 24%/2.5% and achieved ~87% renewal rate. Government cooling measures are expected to pose headwinds in 4Q22.

• We cut our FY22e revenue by 6% and PATMI by 24% to account following management guidance of macroeconomic headwinds and increased cost assumptions. Downgrade to ACCUMULATE with a lowered DCF target price of US$5.30 (prev. US$5.73), with a WACC of 10.1% and g of 3%.


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