Stock calls for 9 January 2023

Date	Analyst	Company	Last	Target	Call	Valuation
01/09/23	UOB Kay Hian	A-Reit	2.73	3.27	Buy
01/09/23	Kim Eng	AEM	3.48	3.08	Sell	PER8.5x FY23
01/09/23	UOB Kay Hian	ART	1.03	1.37	Buy
01/09/23	Uob Kay Hian	Capitaland Integrated Commercial Trust	2	2.29	Buy
01/09/23	UOB Kay Hian	CDL Hospitality	1.25	1.47	Buy
01/09/23	UOB Kay Hian	Frasers Logistics	1.17	1.56	Buy
01/09/23	UOB Kay Hian	Genting	0.97	1.15	Buy
01/09/23	UOB Kay Hian	Keppel Reit	0.9	1.17	Buy
01/09/23	UOB Kay Hian	Lendlease Reit	0.675	0.87	Buy
01/09/23	UOB Kay Hian	Mapletree Commercial	1.69	2.02	Buy
01/09/23	UOB Kay Hian	Mapletree Industrial	2.25	3.3	Buy
01/09/23	UOB Kay Hian	Mapletree Logistics	1.6	1.99	Buy
01/09/23	Citi Research	Sembcorp Marine	0.134	0.1	Sell
01/09/23	UOB Kay Hian	Suntec Reit	1.37	1.37	Hold
01/09/23	Kim Eng	UMS	1.23	1.34	Buy
01/09/23	DMG & Partners	UOB	30.84	34.9	Buy
01/09/23	CIMB	Venture	16.97	20.1	Add	PER15.2x FY23
01/09/23	Lim & Tan	Yangzijiang	1.23	0	Buy

US consumerism is stalling because household savings are at a record low.

The US consumer spending accounts for 70% of the US economy.  If the US consumerism is stalling because of the record low household savings, the US will enter into a recession in 2023.

Equity sentiment declined in 2022.

The equity sentiment has not reached the extreme bearishness zone yet. Thus, it pays to be patient in the stock market.

The US will enter into a recession in 2023 due to its declining PMI.

The prices subindex had declined to 39.4 (-03.6) because of the continual easing in supply and logistic disruption. The new order continued its contractionary phase (45.2, -2) because the new export (46.2, -2.2) order declined and the new local order remained stagnant. As the new order remained weak, the customers’ inventories (48.2, -0.5) and backlog orders (41.4, +1.4) stayed in the contractionary phase.

The production (48.5, -3) declined because of the weaker outlook. However, the employment improved to 51.4 (+3) because the producers preferred to get more workers due to the mismatch in the labour market. The supplier’s delivery improved to 45.1 (-2.1) because of easing in supply and logistic disruption. A lower delivery index means a faster delivery period.

Nevertheless, the producers took advantage of the lower prices to stock up on their inventories (51.8, +0.9) by using more local raw materials (+2.4) and reducing their imports (45.1, -1.5)

In conclusion, the above factors caused the PMI to decline to a 1 year low of 48.4 (-0.6) and the economy would enter into a recession in 2023.

Baltic dry index - 1130

Related stock: Sembcorp Marine, Cosco & Pan Ocean.

US rig count (weekly) - 772

Related stock: Sembcorp Marine & Cosco.

Golden Energy - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/04/22	Lim & Tan	Golden Energy	0.295	0.42	Buy
03/17/22	Amfrasers	Golden Energy	0.39	1.29	outperform	Sum of parts

Golden Agri - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/11/22	DMG & Partners	Golden Agri	0.245	0.24	Neutral
01/11/22	CIMB	Golden Agri	0.245	0.335	Add
02/28/22	DMG & Partners	Golden Agri	0.29	0.26	Neutral
02/28/22	OCBC	Golden Agri	0.29	0.32	Hold
03/03/22	DMG & Partners	Golden Agri	0.305	0.315	Neutral
03/03/22	Lim & Tan	Golden Agri	0.305	0	Accumulate
03/14/22	DMG & Partners	Golden Agri	0.3	0.31	Neutral
04/12/22	DMG & Partners	Golden Agri	0.305	0.31	Neutral
05/13/22	DMG & Partners	Golden Agri	0.28	0.3	Neutral	Sum of parts
05/16/22	CIMB	Golden Agri	0.28	0.3	Hold
05/18/22	OCBC	Golden Agri	0.28	0.3	Hold
07/12/22	CIMB	Golden Agri	0.265	0.3	Hold
08/11/22	DMG & Partners	Golden Agri	0.275	0.29	Neutral	Sum of parts
08/15/22	DMG & Partners	Golden Agri	0.275	0.3	Neutral	Sum of parts
09/02/22	Lim & Tan	Golden Agri	0.275	0.4	Buy
11/15/22	DMG & Partners	Golden Agri	0.285	0.33	Buy