Steady lending in August with deposit inflow exceeding loan growth
The MAS announced monetary stats with a 0.4% MoM, +7% YTD loan growth, with broad-based increase in business (+0.3% MoM, +7.4% YTD) & consumer lending (+0.4% MoM, +5.8% YTD). Overall deposit picked up (+0.9% MoM, +2.2% YTD) along with DBU deposits +1.0% MoM, +1.2% YTD.
We initiate coverage on Hafary Holdings “Hafary” with a BUY rating and a SOP-derived TP of SGD0.35, representing an upside of 67%. Hafary is a market leader in tile supply in Singapore, offering a wide range of tile and related products for home renovation, private property development and public sector projects. Hafary also owns a portfolio of six property assets with a potential valuation surplus of c.SGD58.1m.
Libra Group announced on 26 Sept that it is placing out 15m shares at SGD0.20 per share to raise a total of SGD3m. This would enable it to potentially make acquisitions to further expand the scale of its business, as well as undertake larger projects that require more capital. In addition, this may help to partially fund the renovation of and payments for its new facility.
Maintain BUY, as our TP falls to SGD0.27 from SGD0.31 from the share dilution.
We went up to Taiping, Perak, last Friday to visit Riverstone’s new production plant. Riverstone is a smallish glove maker, that uses nitrile latex (as opposed to rubber latex) to make gloves for customers that require more customization. Riverstone makes both clean room gloves for the tech sector and also gloves used in the health care industry.