KGI DAILY MARKET MOVERS – 29 July 2021
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Market Movers
- Shares of Advanced Micro Devices (AMD US) were up 7.58% on Wednesday, after the company reported second quarter earnings that beat analyst estimates. The semiconductor manufacturer reported a $0.63 earnings per share and sales of $3.85 billion. AMD said it expects sales of chips to data center and gaming businesses will drive growth in the upcoming quarter, and the company plans to maintain its current 48% gross profit for all of 2021 as a whole. Rival Nvidia (NVDA US) also closed higher on Wednesday, responding to the bullish sentiment. Nvidia is set to release its own earnings next month.
- Boeing (BA US) shares soared 4.18% on Wednesday, closing at $231.57 after the aircraft maker released its 2Q report that trumped analyst estimates. Boeing’s 2Q revenue shot up 44% year-on-year to $17 billion, attributed to a surge in commercial deliveries — they delivered 79 commercial planes in Q2 2021, while only delivering 20 in Q2 2020.
- BioNTech (BNTX US) shares climbed on Wednesday, gaining as much as 11% intraday and ending the trading day up 10.3% at $313.45. The biotechnology company co-developed the BNT162b2 COVID-19 vaccine with Pfizer (PFE US) who announced sparkling Q2 figures on Wednesday morning, resulting in the stock price closing 3% higher at $43.45. Sales of the BNT162b2 vaccine generated $7.9 billion, which made up 42% of the company’s revenue, which was most likely what gave the two stocks a boost.
- Spotify Technology (SPOT US) stocks fell as much as 10.1% on Wednesday and ended the day down 5.74% at $223.32 despite having 2Q results that exceeded most of analysts’ expectations. The company pointed to the COVID-19 pandemic affecting performance in several markets, and a user-sign up technical issue that led to unsatisfactory monthly active user (MAU) sign-ups.
Singapore
- OIO Holdings Limited (OIO SP) shares rose by 9.5% yesterday. Moonstake, the second-largest staking business in Asia which is 100% owned by OIO, announced yesterday that the company has integrated its DeFi application partner, Muse Finance into the Web Wallet to bring advanced DeFi connectivity to Moonstake’s platform. The connection with DeFi products, which has been growing strong since last year, will further enhance the user experience on the Moonstake platform. Future product launches by Muse will add liquidity to the staking assets and open the door to innovative DeFi products, all of which will be supported by Moonstake. The company also highlighted that following its full-scale operation launched in August 2020, business has expanded and as of July 2021, total staking assets have exceeded over US$1bn.
- MC Payment Limited (MCPP SP). Shares rose by 8.6% yesterday after the company announced several senior management appointments. Tan Chee Keong was appointed as the company’s new managing director and Ng Kok Peng as its new chief financial officer. Tan Chee Keong was previously Head of Payments Consulting at American Express International and held various positions at Citibank prior to that. Meanwhile, Ng Kok Peng will be joining from another listed company, engineering firm TEE International. This pair of appointments could have given investors more confidence on the strategy of the group going forward after most of the senior management resigned after a board tussle. Read the full news article here.
- Golden Energy & Resources Limited (GER SP) Shares rose by 6.6% and closed at a 3-year high, as investors continued to buy Golden Energy’s shares ahead of its earnings. The company announced positive profit guidance on 25 July. Based on a preliminary assessment of the group’s unaudited financial results for 1H2021, the group expects to report a significant improvement in revenue and earnings for 1H2021 as compared to the 1H2020. This is primarily due to the higher average selling prices arising from an increase in coal prices, as reflected on the Indonesian Coal Index 4. In addition, The Business Times featured Golden Energy in an article yesterday mentioning the renewed interest among the two Singapore-listed coal miners who are set to benefit from the surge in coal prices.
- Geo Energy Resources Limited (GERL SP). Shares rose by 6.6% and closed at its highest since November 2018. Together with Golden Energy, The Business Times featured Geo Energy as the two locally-listed coal miners who are set to benefit from higher demand for thermal coal from China. Coal prices of the Indonesian Coal Index 4 (ICI4) has risen 67% year-to-date to US$65 a tonne, the highest in eight years, as heat waves in Zhejiang, Jiangsu and Guangdong, China’s biggest industrial provinces, pushed electricity consumption to unprecedented levels. Furthermore, as China is currently in a trade spat with Australia, investors are likely to favour the Indonesian coal producers to continue feeding China’s growing demand.
- Metal Component Engineering Limited (MCOM SP). Shares rose by 5.3% yesterday. The company announced that its subsidiary, Metal Precision Services Pte Ltd, has entered into a term sheet to gain an equity stake in MedTel Healthcare Private Limited. MCE intends to invest up to 10% of the issued and paid up share capital of MedTel during its current funding round. MedTel is an India-based Internet of Medical Things company and provides connected care and remote patient monitoring solutions. In addition, the company also announced that it has made partial payment of S$800k cash consideration to Gainhealth Pte Ltd, as mutually agreed by both companies, with the remaining S$700k to be paid in due course.
- Samudera Shipping (SAMU SP). The company’s 1H2021 PATMI surged 413% YoY to US$36.7mn on the back of a 20% YoY increase in revenue to US$209mn. The better performance was mainly on the back of higher freight rates while container volume handled only rose 8% to 715,000 TEUs. The company declared a 0.50 Sing cents dividend for the 1H2021 period; there was no dividend declared in the prior year period. The company currently trades at 0.75x historical P/B.
Hong Kong
- HengTen Networks Group Ltd (136 HK) shares recovered from a 52-week low. There was no company specific news. The overall market recovered from 4 consecutive days’ sell-off. The huge rebound today could be due to short-covering action.
- Country Garden Services Holdings Co Ltd (6098 HK). The property management sector rebounded. Citic Securities issued a report stating that regulations are not to rein in the development but to standardize it. Meanwhile, the company announced a share repurchase program with no more than 307 million shares, accounting for less than 10% of total shares issued.
- Li Ning Co. Ltd. (2331 HK). Shares recovered from a 2-month low. There was no company specific news. The rebound was in line with the broader sportswear sector which recovered due to a technical rebound.
- Jinxin Fertility Group Ltd (1951 HK). Triple-child policy-themed stocks jumped. The company founder, chairman, and CEO increased holdings by 1.5mn shares at an average price of HK$12.5.
- JD Health International Inc (6618 HK). Shares recovered from the low since its IPO. There was no company specific news. The Hong Kong technology sector recovered from a 4 days’ sell-off.
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