Sasseur REIT (SASSR SP): REIT-vitalisation of China’s economy
BUY Entry – 0.67 Target– 0.73 Stop Loss – 0.64
Sasseur Real Estate Investment Trust operates as a real estate investment trust. The Company invests in a diversified portfolio of retail real estate assets. Sasseur Real Estate Investment Trust serves customers in Asia.
Record high portfolio occupancy and resilient leasing demand. Sasseur REIT achieved a record-high occupancy rate of 98.9% in 4Q24, demonstrating strong tenant demand and effective asset management. While 2H24 outlet sales in RMB declined 3.9% YoY, the REIT has continued optimizing its tenant mix to sustain footfall and enhance rental revenue.
Strategic asset enhancements driving value. Recent asset enhancement initiatives (AEIs) at the Kunming and Hefei outlets, including improving retail layouts and adding parking spaces, have enhanced the shopping experience and increased foot traffic. Plans to install energy-efficient air-conditioning systems at the Chongqing Liangjiang Outlet between 2025-2027 are expected to improve operational efficiency and cost savings.
Favourable market positioning in China’s outlet mall industry. China’s recent fiscal stimulus measures, including the expansion of consumer trade-in schemes and increased government spending, aim to bolster domestic consumption and economic growth. These initiatives are expected to enhance consumer purchasing power, potentially leading to increased retail sales. For Sasseur REIT, which operates retail outlet malls in China, such measures could translate into higher foot traffic and sales, thereby positively impacting rental income and overall financial performance. However, the actual benefits will depend on the effective implementation of these policies and the broader economic environment.
2H24 financial results. Sasseur REIT’s EMA rental income remained stable at RMB 335.1 million, reflecting 0.8% YoY growth despite macroeconomic headwinds. In SGD terms, EMA rental income stood at S$62.2 million, with a slight 0.3% YoY decline due to unfavorable foreign exchange rates. Distributable income per unit (DPU) for 2H24 rose by 0.1% YoY to 2.929 Scts, primarily supported by the resilient EMA rental income.
We have fundamental coverage with a BUY recommendation and a TP of S$0.90. Please read the full report here.
Market consensus
(Source: Bloomberg)
CSE Global Ltd (CSE SP): Fundamentals still strong
CSE Global Limited provides systems integration and information technology solutions, computer network systems, and industrial automation. The Company also designs, manufactures, and installs management information systems. CSE Global develops, manufactures, and sells electronic and micro processor monitoring equipment.
Strong top-line growth in the electrification business. CSE Global reported strong topline growth for its electrification business in FY24, rising from S$334.5mn in FY23, to S$434.8mn in FY24, representing a 30.0% YoY growth. The company’s automation business saw growth of 14.3% YoY, while its communications business saw a growth of 5.2% YoY. The ongoing AI trend is likely to positively impact demand for data centres and continue contributing to strong demand for the company’s electrification business.
Continued stable order books. CSE Global’s order book remained stable at S$672.6mn in FY24,which will be robust to drive revenue growth in FY25. On the other hand, order intake declined by 19.1% YoY, largely due to lower new projects orders in 2H24, as the U.S. Presidential Election approached. While uncertainties still remains in the United States, which is CSE Global’s largest market, the company still expects strong orders to come in amidst ongoing global trends, pushing demand for energy and communication services higher.
Recurring businesses to sustain growth. In addition to providing clients with engineering solutions across different industries and different markets, CSE Global also provides their existing clients with other services, such as routine checks and maintenance for their infrastructures. This business model creates a layer of revenue drivers for the company, allowing it to derive recurring revenue from each project with their clients through maintenance and checks after the initial projects are completed, while simultaneously maintaining stable cash flow. The company’s recurring business makes up 68.9% of the company’s revenue.
FY24 financial results. The company reported total revenue of S$861.2mn for FY24, increasing by 18.8% YoY, compared to S$725.1mn in FY23. The growth was mainly attributed to strong growth in its electrification business, which experienced a growth of 30.0%. Net profit attributable to equity owners increased by 16.9% YoY to S$26.3mn, despite a one-time exceptional loss of S$10.4mn, compared to S$22.5mn in FY23. The group’s EPS was 3.91 Scents in FY24, compared to 3.66 Singapore cents in FY23. CSE Global announced a final dividend of 1.15 Scents for 2H24, a decline from the previous years’ final dividends of 1.5 Scents. This brings the company’s FY24 dividend to 2.4 Scents, lower than FY23 total dividend of 2.75 Scents.
We have fundamental coverage with a BUY recommendation and a TP of S$0.60. Please read the full report here.
Market consensus
(Source: Bloomberg)
PICC Property and Casualty Co Ltd. (2328 HK): Benefitting from strong EV sales
BUY Entry – 14.5 Target – 16.5 Stop Loss – 13.5
PICC Property and Casualty Co Ltd is a China-based company mainly engaged in property and casualty insurance business. The Company operates its businesses through six segments. The Motor Vehicle segment provides insurance products covering motor vehicles. The Accidental Injury and Health segment provides insurance products covering accidental injuries and medical expenses. The Agriculture segment provides insurance products covering agriculture business. The Liability segment provides insurance products covering policyholders’ liabilities. The Commercial Property segment provides insurance products covering commercial properties. The Others segment mainly represents insurance products related to cargo, credit and surety, household property, special risks, marine hull and construction. The Company mainly conducts its businesses in the domestic market.
EV Sales Growth Driving Auto Insurance Demand. China’s EV market saw strong momentum in February, accounting for nearly three-quarters of the 1.2 million EVs and hybrids sold globally. Despite rising import barriers in Europe and the U.S. to curb the dominance of Chinese automakers, China’s battery EV sales surged 46%, driven by new model launches from BYD, Xiaomi, Xpeng, and Zeekr. As more consumers shift away from petrol-electric hybrids in favor of full EVs, demand for auto insurance is expected to rise, benefiting insurers like PICC Property and Casualty.
Expanding Auto Insurance in Hong Kong. Earlier this year, PICC Property and Casualty, alongside two other Chinese insurers, signed a Memorandum of Understanding (MoU) under the Green Action Global initiative to expand the auto insurance market in Hong Kong. The partnership aims to leverage shared resources, technical expertise, and industry experience to support the growth of insurance products tailored for Chinese new energy vehicles in the region.
Strategic Partnership for Medical Insurance. PICC Property and Casualty has also entered into a strategic partnership with Zhibao Technology Inc. and Munich Re Beijing to introduce a next-generation private medical insurance product in China. The collaboration focuses on providing Chinese consumers access to high-quality medical services beyond the scope of public insurance. By combining the strengths of all three partners, the initiative aims to offer a comprehensive and innovative solution tailored to China’s growing middle class. The first product under this partnership is expected to launch in the coming months.
9M24 results review. Operating income increased by 7.9% YoY to RMB392.3bn in 9M24, compared with RMB363.4bn in 9M23. Net profit increased by 38.0% to RMB26.8bn in 9M24, compared to RMB19.4bn in 9M23.
Market consensus.
(Source: Bloomberg)
Weilong Delicious Global Holdings Ltd. (9985 HK): Plans to boost consumption
Weilong Delicious Global Holdings Ltd is a China-based holding company principally engaged in the production and sales of spicy snack foods. The Company operates in three segments: Seasoned Flour Products segment, Vegetable Products segment and Bean-based and Other Products segment. The Seasoned Flour Products segment mainly includes Big Latiao, Mini Latiao, Spicy Hot Stick, Mini Hot Stick and Kiss Burn. The Vegetable Products segment mainly includes Konjac Shuang and Fengchi Kelp. The Bean-based and Other Products segment mainly includes Soft Tofu Skin, 78° Braised egg and meat products.
Plans to Boost Consumption. China has unveiled a “Special Action Plan to Boost Consumption”, reinforcing its commitment to stimulating domestic demand. The plan aims to drive consumption growth, expand household spending power, and enhance purchasing capacity by raising incomes and reducing financial burdens. This follows Premier Li Qiang’s recent government work report, which identified consumption growth as the country’s top economic priority for the year. Key measures include employment support initiatives, enhanced unemployment benefits, and targeted income-boosting efforts for both urban and rural residents, including farmers. Beyond short-term stimulus, the plan signals China’s resolve to tackle structural challenges such as stagnant wage growth, negative wealth effects from property and stock market downturns, and an inadequate social safety net. The expected rise in consumer spending could have a positive impact on Weilong Delicious Global Holdings, as stronger domestic demand may support the company’s growth.
Partnership with KFC. Earlier this year, Weilong Delicious has partnered with KFC to launch a co-branded “Spicy Strip Flavor Large Chicken Strips,” capitalizing on the fast-food chain’s popular “Crazy Four” promotion to engage young consumers. This collaboration follows previous partnerships with Pizza Hut and Xiaolongkan Hotpot, reinforcing Weilong’s strategy of leveraging fast-food platforms to enhance brand visibility and product appeal. By prioritizing genuine product innovation and aligning with fast-food consumption trends, Weilong aims to translate marketing buzz into sustained consumer engagement. This approach reflects shifting dynamics in China’s consumer market, where brands must focus on core customer segments and product differentiation rather than broad, awareness-driven marketing campaigns to drive long-term growth.
1H24 results review. Revenue increased by 26.3% YoY to RMB2.94bn in 1H24, compared with RMB2.33bn in 1H23. Net profit increased by 38.9% to RMB621.2mn in 1H24, compared to RMB447.1mn in 1H23. EPS rose from RMB0.19 in 1H23 to RMB0.27 in 1H24.
Market consensus.
(Source: Bloomberg)
Nebius Group NV (NBIS US): Rise of AI infrastructure
BUY Entry – 26 Target – 30 Stop Loss – 24
Nebius Group is a technology company providing infrastructure and services to AI builders globally. The group’s core business, Nebius, is an AI-centric cloud platform built for AI workloads. Nebius Group serves customers worldwide.
Inference computing power drives demand for data centers and AI factories. At NVIDIA’s 2025 GTC conference, the AI scaling law was reiterated, emphasizing that inference will be the core driving force of the next stage of AI training. The computing power demand for inference has grown more than 100 times compared to last year. Future investments in data centers and AI factories are expected to reach $1 trillion by 2028.
Expansion in Europe and the United States. Nebius currently has data center facilities in Finland and France and is about to open a new facility in Iceland. The company plans to invest $1 billion in Europe and recently launched an Nvidia H200-powered GPU cluster in Paris. Additionally, Nebius plans to triple its computing power in Finland, with the potential for up to 60,000 GPUs in the future, which alone could generate $1 billion in revenue when fully operational. Nebius has just opened a data center in Kansas City and plans to build a super-large data center in New Jersey, expected to provide up to 300 megawatts of power capacity. The company’s revenue for fiscal year 2024 was $117.5 million and is projected to grow to $750 million to $1 billion in fiscal year 2025.
NVIDIA concept stock. As of the end of 2024, NVIDIA held 1.19 million shares of the company. The company recently announced that it has become an early cloud service provider adopting the NVIDIA Blackwell Ultra platform and is expected to provide computing instances powered by NVIDIA GB300 NVL72 by the end of 2025. In addition, the company has been selected as an ecosystem partner for NVIDIA Dynamo Inference Engine.
4Q24 results. Revenue rose 466% YoY to $37.9 million, missing expectations by $19.81 million, driven primarily by the core AI infrastructure. Adjusted EBITDA loss was $75.5 million and net loss from continuing operations was $136.6 million.
SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.
Improving automation process. SAP SE announced new generative AI features and an expanded partnership with American Express at SAP Concur Fusion. Joule, SAP’s AI copilot, will be integrated into Concur solutions to automate travel and expense management. Additionally, SAP Concur and American Express introduced real-time authorization data for corporate card transactions. SAP Concur remains the market leader in travel and expense management, with further integrations planned with Mastercard and American Express Global Business Travel. By deepening partnerships with financial services providers and expanding automation capabilities, SAP aims to enhance user experience, drive compliance, and improve cost efficiencies for businesses. Future developments in AI-powered expense processing and travel planning will likely strengthen its competitive advantage and customer adoption.
Capital inflow. Rising capital inflows into European markets, driven by Germany’s fiscal stimulus and increased defence spending, are fuelling a shift from US to European equities. With 60% of investors expecting stronger European growth, sectors like financials, industrials, and small caps are gaining momentum, with Germany as the preferred market. As Europe’s economy strengthens, businesses will accelerate digital transformation. SAP, as the region’s leading enterprise software provider, is well-positioned to capitalize on increased corporate investment in technology and cloud-based solutions.
4Q24 results. Revenue rose 10.7% YoY to €9.38 billion, beating expectations by €240 million. Non-GAAP earnings per share were €1.40, missing expectations by €0.05. The company declared dividend of €2.35/share annual dividend, 6.8% increase from prior dividend of €2.20/share, payable on 16 May.
Trading Dashboard Update: Add CSE Global Ltd. (CSE SP) at S$0.460, Weilong Delicious Global Holdings Ltd. (9985 HK) at HK$13.3 and SAP SE (SAP US) at US$269.
