Stock calls for 4 June 2025

Date	Analyst	Company	Last	Target	Call	Valuation
06/04/25	Lim & Tan	Capitaland Investment	2.51	3.35	Accumulate
06/04/25	Lim & Tan	Cosmosteel	0.225	0.2	Hold	Offer price $0.20
06/04/25	UOB Kay Hian	Dairy Farm	2.65	3.5	Buy	PER20.3x
06/04/25	DBS Vickers	Singapore Land	2.12	2.6	Buy
06/04/25	OCBC	ST Engineering	8.01	8.54	Buy

Red alert: OECD has downgraded the US and global growth.

Besides downgrading the US growth for 2025 and 2026, the OECD has also revised down global growth to 2.9%.

Things are not looking rosy in 2025 and 2026 as stated by the OECD.

Hong Leong Asia - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
08/29/24	CIMB	Hong Leong Asia	0.795	1.2	Add	Sum of parts
08/29/24	UOB Kay Hian	Hong Leong Asia	0.795	1.38	Buy	Sum of parts
10/11/24	DBS Vickers	Hong Leong Asia	0.805	1.28	Buy	Sum of parts
12/13/24	UOB Kay Hian	Hong Leong Asia	0.83	1.11	Buy	Sum of parts
02/28/25	UOB Kay Hian	Hong Leong Asia	0.925	1.11	Buy	Sum of parts
02/28/25	DBS Vickers	Hong Leong Asia	0.925	1.6	Buy	Sum of parts
03/14/25	UOB Kay Hian	Hong Leong Asia	1	1.11	Buy	Sum of parts
03/24/25	UOB Kay Hian	Hong Leong Asia	1.02	1.46	Buy	Sum of parts
05/27/25	UOB Kay Hian	Hong Leong Asia	1.17	1.46	Buy	Sum of parts

Ho Bee - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/16/25	Lim & Tan	Ho Bee	1.82	3.8	Accumulate

Guocoland - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
09/05/24	DBS Vickers	GuocoLand	1.53	2	Buy	RNAV (50% disc)
10/18/24	DBS Vickers	GuocoLand	1.59	2	Buy	RNAV (50% disc)
02/10/25	DBS Vickers	GuocoLand	1.44	2	Buy	RNAV (50% disc)
02/12/25	Lim & Tan	GuocoLand	1.45	2	Accumulate

Stock calls for 3 June 2025

Date	Analyst	Company	Last	Target	Call	Valuation
06/03/25	UOB Kay Hian	China Sunsine	0.55	0.63	Buy	PER7.5x FY25
06/03/25	UOB Kay Hian	Comfortdelgro	1.41	1.71	Buy	PER16x FY25
06/03/25	UOB Kay Hian	Frencken	1.14	1.4	Buy	PER15x FY25
06/03/25	Lim & Tan	LHN	0.515	0.6	Accumulate on weakness
06/03/25	UOB Kay Hian	Sheng Siong	1.83	1.97	Buy	PER20x FY25
06/03/25	phillip	Zixin	0.034	0.06	Buy	DCF

The US PMI had been in consecutive declines for the past few months!

Missing parameter:

Estimated Local New Orders: New orders - New Export Orders = +0.4 - (-3) = +3.4

Estimated Local Material: Inventories - Imports = -4.1 - (-7.2) = 3.1

This latest PMI report has partially reflected Trump's tariffs' impact.  Let's break it down for greater clarity.

The prices declined marginally (-0.4) because Trump had deferred the heavy tariffs while maintaining only the 10% standard tariffs.

The producers increased their production (+1.4) and employment (+0.3) just to fulfil the slight increase in new orders (+0.4) which were caused by an increase in local new orders (Est'd +3.4).  Thus, the customers' inventories were depleted further and the backlog of orders increased (+3.4).

In anticipation of the impending harsh tariffs, the producers used more local material (Est'd +3.1) and reduced the imported materials (-7.2).  Furthermore, the producers were not optimistic about the future outlook and reduced their inventories (-4.1).

All the above caused the PMI decline to 48.5 which put the US manufacturing in a contractionary zone.  Overall, this is a bad report because it is only supported by local new orders which is unsustainable.  Moreover, the table below showed that the US had been in consecutive declines for the past few months.