KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

KGI DAILY MARKET MOVERS – 27 April 2021

IPO WATCH

Endeavor Group (EDR US): High-growth premium entertainment enters the public market ring

  • EDR provides talent management services, live events and related content for its media intellectual property, and is known for owning the Ultimate Fighting Championship (UFC) and Miss Universe organisation brands.
  • EDR saw 2020 sales fall by 24% as the pandemic crippled its live events and representation business. However, the business maintains positive operating cash flow and saw an increase in adjusted EBITDA margins for FY20.
  • We see EDR as the growth play on sports entertainment in contrast to WWE, which grows sales at a slower rate but is profitable from its media rights.
  • Initial IPO price of US$23-24/share indicates 2.9x Price/Sales at the midpoint, for a US$10 billion initial market cap. We see potential for 4-5x Price/Sales trading range (US$33-41/share) as WWE currently trades at around 4.4x.
  • EDR is expected to price on 28 April and trade on 29 April, Thursday.

MARKET MOVERS


United States

  • Tesla Inc (TSLA US) reversed its gain today in after-hours trading despite beating analyst estimates for 1Q21. Sales of US$10.4 billion met estimates, while EPS of US$0.93/share is more than 3x year-on-year and exceeded estimates by 15%. Tesla reaffirmed vehicle delivery forecast of about 50% average annual growth, with close to 185,000 delivered in 1Q21, a 109% year-on-year growth.
  • Seagate Technology (STX US) soared past the US$90 mark, a new record high for the company supported by an improved management guidance during 1Q21 results.
  • Relx Technology (RLX US) maintained upward momentum behind the World Health Organisation’s (WHO) proposal for China to have a separate government body independent of tobacco incumbents to regulate their e-cigarette industry. 
  • MicroVision (MVIS US) maintained its parabolic uptrend and shot to a new high, leading other meme stocks such as Gamestop, AMC, Koss Corp, and Naked Brand higher. 
  • Playboy Group (PLBY US) hit a new high and led NFT stocks higher, which are now seeing a return in momentum after 2-3 weeks of market weakness. Another worthy mention would be Takung Art (TKAT US), which is up over 70% from the recent low.
  • Trading Dashboard: Adjust Lululemon’s and Aptiv’s stop loss to US$319 and US$136 respectively, to protect against downside. 

Earnings Watch: 3M, BP, AMD, Microsoft, Alphabet, Visa, Pinterest, JetBlue Airways, Eli Lilly, Starbucks and Yum China are key stocks to watch for Tuesday.


Singapore

  • Yoma Strategic (YOMA SP) shares surged 15% to close at S$0.161 on higher-than-average trading volumes after Myanmar leaders and heads of state from ASEAN agreed in a special meeting, urging an end to violence and calling for constructive dialogue among all parties concerned. Shares of YOMA have dropped by as much as 50% since the Myanmar coup on 1 February 2021, but likely found a key support level at around S$0.14. 
  • Aztech Global (AZTECH SP). Shares rose to a post-IPO high yesterday after DBS, UOB, CGS-CIMB and MAYBANK initiated coverage on the counter with BUY recommendations and target prices ranging between S$1.85 and S$1.91.
  • Jiutian Chemical (JIUC SP). The company will report its first quarter results this week, and expectations are high for healthy earnings driven by favourable tailwinds in its key markets. 
  • Yangzijiang (YZJSGD SP) shares rose 2% yesterday. The company has been on a winning streak. Last week, Yangzijiang announced new contracts for another 15 vessels worth US$0.97bn. Year-to-date, it has secured 75 new shipbuilding contracts worth US$4bn, on track to beat its record of US$5bn set in the last supercycle in 2007. 
  • Riverstone (RSTON SP) will go ex-dividend this Friday (30 April).  Share price tends to rally ahead of big dividend payouts. The company has declared a final and special dividend of RM 16 sen and RM 4 sen, respectively, which is equivalent to around 6.5 SG cents (based on RMB3.09 per SGD). This is an implied 4.3% dividend yield based on its last closing price of S$1.51. 
  • Highest Net Institutional Fund Inflows (16-22 April): Within the STI, Singtel, DBS, OCBC, SGX and Sembcorp Industries received the highest net institutional inflows during the period. Outside the STI, SPH, Top Glove, Nanofilm Technologies, JEP Holdings and Yanlord Land saw the highest net institutional inflows for five trading sessions.

Hong Kong

  • Kintor Pharmaceutical Ltd (9939 HK) Pharmaceutical sector jumped as global COVID-19 cases continue to surge. The company announced that the phase III clinical trial of Proxalutamide for the treatment of male patients with mild or moderate COVID-19 symptoms in the United States has completed first patient enrolment and dosing.
  • Huabao International Holdings Limited (336 HK) E-cigarette sector jumped as the World Health Organization suggested China should regulate e-cigarette under a new and independent department and regulations rather than under the existing tobacco regulations.   
  • Shanghai Henlius Biotech Inc. (2696 HK) Previously, the company announced that the new drug application of Serplulimab injection (recombinant humanised anti-PD-1 monoclonal antibody injection, original project code: HLX10) independently developed by the Company has been accepted by the Centre for Drug Evaluation of the National Medical Products Administration for the treatment of unresectable or metastatic microsatellite instability-high solid tumours that fail to respond to the standard therapy and entered the publicity period of procedure for proposed priority review.
  • Kuaishou Technology (1024 HK) Shares went up for three consecutive days. Video streaming sector recovered due to technical rebound. 
  • Great Wall Motor Company Limited (2333 HK) Automobile sector dipped as concerns over the chip shortage still remain. While the company denied any suspension of production, it has admitted to the issue of chip shortage.

TRADING DASHBOARD


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