26 June 2024: TSH Resources Bhd (TSHRES SP), Samsonite International S.A. (1910 HK), Airbnb Inc (ABNB US)
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TSH Resources Bhd (TSHRES SP): Palm oil demand to rise
- BUY Entry – 0.33 Target– 0.35 Stop Loss – 0.32
- TSH Resources Berhad operates as a holding company. The Company, through its subsidiaries, engages in cultivating, processing, and refining oil palm. TSH Resources serves customers in Malaysia, Singapore, and Spain.
- Palm oil usage in Mala. Malaysia is aiming to boost its palm oil exports by promoting its use in China’s popular mala hotpot, especially during Chinese Premier Li Qiang’s visit to Malaysia. As the world’s second-largest palm oil producer, Malaysia seeks to diversify its market amidst potential EU sanctions over deforestation concerns. China, the second-largest importer of Malaysian palm oil, could significantly increase its demand with nearly 400,000 hotpot restaurants. Malaysia has partnered with Chinese enterprises to integrate palm oil into the hotpot industry, emphasizing its suitability for high-heat cooking. This initiative aligns with Malaysia’s ongoing efforts to promote sustainable palm oil through its Malaysian Sustainable Palm Oil (MSPO) certification, aiming to counter the deforestation narrative and enhance market acceptance in China. The increase in palm oil exports will be beneficial to TSH Resources, boosting its top lines.
Malaysian Crude Palm Oil Spot Price Chart
(Source: Bloomberg)
- Palm oil price. Malaysian palm oil futures rose for the second session in a row despite lower export estimates for June 1-20. The benchmark contract for September delivery increased by MYR37, or 0.94%, closing at MYR3,957 per metric ton. Trading ranged between MYR3,901 and MYR3,966 per metric ton. Estimated exports dropped between 8.1% to 12.9% MoM, according to Intertek Testing Services and AmSpec Agri Malaysia. However, Societe Generale de Surveillance estimated higher exports of 737,717 metric tons for June 1-20, up from 647,353 metric tons in the previous period. In related markets, soyoil prices on the Dalian Commodity Exchange and the Chicago Board of Trade (CBoT) also saw gains. Palm oil prices are influenced by movements in related oils due to their competition in the global market. The continued rise in palm oil prices will also lead to an increase in TSH Resources sales for the year.
- 1Q24 results review. 1Q24 Revenue for the year fell by 3.2% YoY to MYR242.4mn from the previous MYR250.3mn in 1Q23. Net profit fell by 33.6% to MYR25.2mn from MYR37.9mn. Basic EPS fell to 1.45 sen in 1Q24, compared to 2.13 sen in 1Q23.
- Market Consensus.

(Source: Bloomberg)
Genting Singapore Ltd (GENS SP): Summer vacation season
- RE-ITERATE BUY Entry – 0.87 Target– 0.93 Stop Loss – 0.84
- Genting Singapore Limited, through its subsidiaries, develops resort properties as well as operates casinos. The Company has casinos and integrated resorts in different parts of the world, including Australia, the Americas, Malaysia, the Philippines and the United Kingdom.
- Summer vacation preference. Agoda has identified the top international summer vacation spots for Indian travellers, with Bali, Singapore, Bangkok, Dubai, and Kuala Lumpur leading the list for May and June. The data shows a strong preference for Southeast Asian destinations, with Thailand, Indonesia, Singapore, and Malaysia being the most searched, followed by the UAE. This trend highlights Indian tourists’ interest in diverse cultural experiences, urban landscapes, and beaches. With Singapore being one of the top destinations, Resorts World Sentosa will be sure to attract more tourists during this busy summer season.
Genting Singapore Stock Seasonal Performance
(Source: Bloomberg)
- Momentum to continue. Genting Singapore reported a 91.5% increase in net profit for 1Q24, reaching S$247.4mn, up from S$129.2mn the previous year. Revenue rose by 61.9% to S$784.4 million. The boost is attributed to higher visitor numbers and tourism spending during the Chinese New Year and relaxed visa regulations between China and Singapore. Resorts World Sentosa plans to host more lifestyle events, such as Harry Potter: Visions of Magic, in 2H24 and is on track with new projects like Minion Land and Singapore Oceanarium, set to open in early 2025. Additionally, a new Waterfront development is expected to be awarded in 3Q24, and a new luxury hotel will launch in early 2025. RWS also signed an MoU with Sentosa Development Corporation and other partners to enhance RWS’s appeal as part of broader. government efforts to boost tourism, which saw receipts exceed S$27.2bn in 2023.
- 1Q24 results review. Total revenue for the year rose 62% YoY to S$784.4mn from the previous S$484.5mn in 1Q23. Net profit increased 92.0% to S$247.4mn from S$129.2mn. Its gaming segment revenue increased significantly by 69% YoY to S$576mn and its non-gaming segment revenue also rose 44% YoY to S$208.3mn.
- Market Consensus.

(Source: Bloomberg)

Samsonite International S.A. (1910 HK): Riding on Summer Seasonality
- RE-ITERATE BUY Entry – 24.4 Target 27.4 Stop Loss – 22.9
- Samsonite International S.A. is a Hong Kong-based company principally engaged in the design, manufacture, sourcing and distribution of luggages, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices. The Company operates its business through three segments. The Travel Bag segment is engaged in travel products with suitcases and carry-ons of three main categories, including hard-side, soft-side and hybrid luggages. The Casual Bags segment is engaged in daily use, including different types of backpacks, female and male shoulder bags and wheeled duffel bags. The Business Bags segment is engaged in business use, including rolling mobile office bags, briefcases and computer bags.
- Expectations of a good summer season. Historically, Samsonite’s share price performance has performed well over the summer seasons, especially over the months of July and August, except for 2019 to 2021, which saw the onset of the COVID-19 pandemic. We expect Samsonite’s share price to follow the summer seasonality trend in 2024 as the tourism level has already shown signs of picking up.
Samsonite Seasonal Performance

(Source: Bloomberg)
- Expanding brand presence. Samsonite recently announced a partnership with Lagardère Travel Retail to open a standalone boutique in the new terminal of Zayed International Airport, Abu Dhabi. This boutique is the only dedicated luggage outlet in the airport’s duty-free zone and represents Samsonite’s 13th location in the Middle East. Positioned near the entrance to Pier B in Departures, the store offers a wide range of Samsonite products and provides complimentary personalization services for customers to customize their purchases. This expansion underscores Samsonite’s commitment to enhancing its global brand presence.
- Ramping up sales efforts. Samsonite has recently intensified its sales efforts to boost volume as the summer season begins. This includes offering discounts of up to 30% during the Memorial Day holidays in the U.S. and running significant promotions on e-commerce platforms like Amazon. These sales are designed to attract consumers planning to travel overseas during the summer, and are expected to increase Samsonite’s sales volume for the next quarter.
- 1Q24 results review. Revenue increased 0.9% YoY to US$859.6mn in 1Q24, compared with US$852.1mn in 1Q23. Adjusted Net profit rose by 7.2% to US$87.1mn in 1Q24, compared to US$81.2mn in 1Q23. Adjust basic earnings per share was 6.0 US cents in 1Q24, compared to 5.6 US cents in 1Q23.
- Market consensus.

(Source: Bloomberg)
COSCO Shipping Holdings Co. Ltd. (1919 HK): Freight rates reach a new high YTD
- RE-ITERATE BUY Entry – 14.4 Target 16.0 Stop Loss – 13.6
- COSCO SHIPPING Holdings Co., Ltd., formerly China COSCO Holdings Company Limited, is an investment holding company principally engaged in container shipping and related businesses. The Company is engaged in container shipping, dry bulk shipping, the management and operation of container terminals, container leasing and the provision of logistics services. The Company operates its business through two segments. The Container Shipping segment is engaged in the transportation of goods across the Pacific, Asia and Europe, and other international routes. The Terminal Operation and Investment segment is engaged in the operation and management of ports. The Company is also involved in the management and leasing of containers.
- Rebounding freight rates. The Freightos Baltic Index has rebounded even further since the end of April 2024, reaching its highest point since September 2022. This reflects a broader trend in the container shipping industry, marked by robust demand coupled with supply chain disruptions. The increased demand for sea freight is primarily due to shifting consumer behaviors and a growing reliance on e-commerce platforms. Additionally, ocean carriers are being forced to divert routes away from the Red Sea, opting instead to navigate around Africa’s Cape of Good Hope due to ongoing vessel attacks, further straining the supply chain by extending shipping times. This rebound in freight rates is expected to positively impact COSCO Shipping.
Freightos Baltic Index

(Source: Bloomberg)
- New strategic cooperation. Cosco Shipping recently entered into a strategic cooperation agreement with China Marine Bunker and CGN New Energy Holdings to develop green methanol production and sales integration project at Bairin Left Banner, Chifeng city, Inner Mongolia, which will be able to produce 200,000 tonnes methanol per year. Cosco Shipping will be in charge of the transportation and warehousing of green energy, while CGN New Energy Holding will be engaged in methanol production and China Marine Bunker will in charge of sales for ocean-going vessel fuel supply. Being able to cut carbon emission by up to 95%, this strategic agreement to produce green methanol comes in line with the global transition towards greener shipping initiatives.
- More shipping routes. Cosco Shipping recently launched a new container service connecting Tianjin Port in China to the East Coast of South America. The service began operations last week, facilitating trade between China and countries in the region by reducing sailing time from 54 to 40 days and increasing reefer shipping capacity. The company will deploy 12 vessels, each with a capacity of 14,000 TEU, offering weekly sailings. Given that China has been Brazil’s largest trading partner for 15 consecutive years, this additional container service is poised to drive long-term revenue growth for the company.
- 1Q24 results review. Revenue increased 1.94% YoY to RMB48.3bn in 1Q24, compared with RMB47.4bn in 1Q23. Net profit fell 5.23% to RMB6.76bn in 1Q24, compared to RMB7.13bn in 1Q23. Basic earnings per share was RMB0.42 in 1Q24, compared to RMB0.44 in 1Q23.
- Market consensus.

(Source: Bloomberg)

(Source: Bloomberg)


Airbnb Inc (ABNB US): Tailwinds from the Paris Olympic Games
- BUY Entry – 147 Target –165 Stop Loss – 141
- Airbnb, Inc. operates an online marketplace for travel information and booking services. The Company offers lodging, home-stay, and tourism services via websites and mobile applications. Airbnb serves clients worldwide.
- Benefit from the Paris Olympics and the European Cup. The quadrennial Olympic Games will be held in Paris from July to August, with an estimated 3 million visitors expected to arrive in the city. This will boost demand for accommodation and dining in Paris and surrounding cities. Airbnb bookings in Paris have surged by 400%, and bookings in other nearby cities such as Saint-Denis and Chartres have also skyrocketed. The company has previously reached an agreement with the International Olympic Committee to operate short-term rentals in Paris. However, Paris has a cap on the number of short-term rental nights per year at 120. In addition to the upcoming Olympics, the ongoing European Championship is also driving up Airbnb bookings in Europe.
- Summer tourist season. Airbnb’s revenue exhibits pronounced seasonal fluctuations, with peak booking volumes concentrated in July and August. The company’s stock price also demonstrates a similar seasonal pattern.
Share Price Seasonality Chart

(Source: Bloomberg)
- 1Q24 earnings review. Revenue grew by 18% YoY to US$2.14bn, beating estimates by US$80mn. GAAP EPS was US$0.41 beating estimates by US$0.18. 2Q24 revenue is expected to range between US$2.68bn to US$2.74bn vs consensus of US$2.74bn.
- Market consensus.

(Source: Bloomberg)
Palantir Technologies Inc (PLTR US): Buy the dip opportunity
- RE-ITERATE BUY STOP Entry – 24.0 Target –27.0 Stop Loss – 22.5
- Palantir Technologies Inc. develops software to analyze information. The Company offers solutions support many kinds of data including structured, unstructured, relational, temporal, and geospatial. Palantir Technologies serves customers worldwide.
- Accelerate health outcomes. Palantir Technologies recently announced that it has been awarded a US$19mn, two-year contract by the Advanced Research Projects Agency for Health (ARPA-H) to support the agency’s mission of accelerating better health outcomes. Palantir’s AIP and Foundry software will provide a robust data strategy and infrastructure to enhance ARPA-H’s business operations and enable continuous improvement. The partnership aims to advance high-impact biomedical and health research, leveraging data and AI to drive efficiency and productivity. This contract not only boosts Palantir’s revenue but also enhances its expertise in public health data infrastructure and AI tools.
- New military contract secured. Palantir has secured a US$480mn contract from the U.S. Department of Defense to develop the Maven Smart System, a prototype designed to enhance military data analytics. The contract is expected to be completed by May 2029 and was awarded through a sole bid solicitation. Maven integrates data from various sources to identify military targets and expedite intelligence analysis.
- 1Q24 earnings review. Revenue grew by 20.7% YoY to US$634.33mn, beating estimates by US$16.72mn. GAAP EPS was US$0.08 in-line with estimates. 2Q24 revenue is expected to range between US$649mn to US$653mn vs consensus of US$643.39mn and adjusted income from operations US$209mn to US$213mn. FY24 revenue is expected to be between US$2,677mn to US$2,689mn vs consensus of US$2,680mn.
- Market consensus.

(Source: Bloomberg)

Trading Dashboard Update: Take profit on Centurion Corp (CENT SP) at S$0.595. Add Samsonite International S A at HK$24.4 and Palantir Technologies Inc (PLTR US) at US$24. Cut loss on OUE REIT (OUEREIT SP) at S$0.255.

