reports
- Philip Wong
Consumer - Mixed Outlook
Mixed Outlook The manageable minimum wage hike impact and strengthening ringgit appear to be offset by subdued sentiment. In addition, the sector offers an uninspiring 2025/26 earnings growth of 5.2%/7.8% respectively and is devoid of meaningful catalysts. It is justified by valuations trading close to -1.5SD to its five-year mean. The balanced reward-to-risk payoff underlines our MARKET WEIGHT stance on the sector. Top picks: Eco-Shop and F&N.
FNH FRASER & NEAVE HOLDINGS BHD
HEIM HEINEKEN MALAYSIA BHD
CAB CARLSBERG BREWERY MALAYSIA B
NESZ NESTLE (MALAYSIA) BERHAD
QLG QL RESOURCES BHD
MRDIY MR DIY GROUP M BHD
FFB FARM FRESH BHD
99SMART 99 SPEED MART RETAIL HOLDINGS BHD
KOPI MK ORIENTAL KOPI HOLDINGS BHD
ECOSHOP MK ECO-SHOP MARKETING BHD
- Benyamin Mikael
- Damon Shen
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jieqi Liu
- Jonathan Koh
- Kitpon Praipaisarnkit
- Philip Wong
- Willinoy Sitorus
Regional Morning Meeting Notes: Wednesday, June 18, 2025
GREATER CHINA Sector Property Takeaways from channel check at The Southside. INDONESIA Strategy Higher Oil Prices Bode Well For Some Participants Beneficiaries of higher oil prices. Takeaways From Our Marketing Trip To Kuala Lumpur Cautious but engaged. MALAYSIA Sector Construction Sector resists tensions from global uncerta...
00016 SUN HUNG KAI PROPERTIES LIMITED
AKRA PT AKR CORPORINDO TBK
ANTM PT ANEKA TAMBANG TBK
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
AMRT SUMBER ALFARIA TRIJAYA TBK PT
BBCA PT BANK CENTRAL ASIA TBK
ERAA ERAJAYA SWASEMBADA
5226 GABUNGAN AQRS
TRUE TRUE CORP. PUBLIC CO. LTD.
GAM GAMUDA BHD
ROTH BRITISH AMERICAN TOBACCO BHD
SCGB SUNWAY CONSTRUCTION GROUP BH
IJM IJM CORP BHD
FNH FRASER & NEAVE HOLDINGS BHD
HEIM HEINEKEN MALAYSIA BHD
CAB CARLSBERG BREWERY MALAYSIA B
MRC MALAYSIAN RESOURCES CORP BHD
ICBP INDOFOOD CBP SUKSES MAKMUR T
KPG KERJAYA PROSPEK GROUP BHD
NESZ NESTLE (MALAYSIA) BERHAD
QLG QL RESOURCES BHD
WCTHG WCT HOLDINGS BHD
MRDIY MR DIY GROUP M BHD
00017 NEW WORLD DEVELOPMENT CO. LTD.
FFB FARM FRESH BHD
CMRY PT CISARUA MOUNTAIN DAIRY TBK
CLAR CAPITALAND ASCENDAS REIT
99SMART 99 SPEED MART RETAIL HOLDINGS BHD
KOPI MK ORIENTAL KOPI HOLDINGS BHD
ECOSHOP MK ECO-SHOP MARKETING BHD
- Philip Wong
Farm Fresh (FFB MK) - 4QFY25: Earnings Fall In Line Despite Slight Dra...
4QFY25: Earnings Fall In Line Despite Slight Drag with Australia Operations Within expectations. Farm Fresh saw a 4QFY25 core net profit of RM28.4m (9.6% qoq, +55% yoy), bringing FY25 core profit to RM106.4m (+86.8% yoy). Earnings were largely in
- Philip Wong
Consumer - ESG Assessment Of F&B Sub-sector
ESG Assessment Of F&B Sub-sector ESG is gaining global prominence as stakeholders integrate it into their business models and risk frameworks. We anticipate that smaller consumer F&B companies will need to dedicate and embrace sustainability more holistically, which will increasingly impact their reputation and success in the longer term. Nestle and Heineken are ESG standouts in the consumer F&B subsector, based on our study. Maintain MARKET WEIGHT. Top picks: 99 Speed Mart and Oriental Kopi.
- Ejann Hiew
- Jonathan Koh
- Kong Ho Meng
- Philip Wong
- Shirley Wang Xueyi
- Stella Guo Yuting
Regional Morning Meeting Notes: Monday, April 07, 2025
GREATER CHINA Results Chongqing Brewery (600132 CH/BUY/Rmb59.82/Target: Rmb71.30) 2024: Net profit misses but core profit in line due to lawsuit provision; focus on off-premise channel expansion in 2025. MALAYSIA Sector Consumer ESG assessment of the top 10 largest F&B companies; Nestle comes out tops. Maintain MARKET WEIGHT. Update Westports Holdings (WPRTS MK/HOLD/RM4.75/Target: RM4.40) Advise taking profit...
D05 DBS GROUP HOLDINGS LTD
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
GCB GHANA COMMERCIAL BANK
FNH FRASER & NEAVE HOLDINGS BHD
WPRTS WESTPORTS HOLDINGS BHD
HEIM HEINEKEN MALAYSIA BHD
CAB CARLSBERG BREWERY MALAYSIA B
NESZ NESTLE (MALAYSIA) BERHAD
QLG QL RESOURCES BHD
FFB FARM FRESH BHD
DLM DEL MONTE FOODS CO
- Philip Wong
Farm Fresh (FFB MK) - 3QFY25: Disappointment As Gross Margins Unexpect...
3QFY25: Disappointment As Gross Margins Unexpectedly Softened Sequential sales were muted by the usual seasonality. Gross margins softened unexpectedly, leading to an earnings disappointment. Positively, key input costs have been locked in for the remainder of the year. Farm Fresh continues to enter new categories and markets. However, we believe its valuations have more than priced in its exciting growth and are underestimating the impending entry of stiff competition. Maintain SELL and target ...
- Adrian Loh Tzum Yung
- Benjaphol Suthwanish
- Chong Lee Len
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Ejann Hiew
- Heidi Mo Jinghui
- Jieqi Liu
- John Cheong Ming Chern
- Johnny Yum
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Lester Siew
- Llelleythan Tan Tan
- Philip Wong
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Ziv Ang Sze Champ
Regional Morning Notes - Monday, March 03, 2025
GREATER CHINA Economics PMI: Uptick in February. Sector Macau Gaming: Feb 25 GGR beat thanks to tail-end effect post CNY; switch top pick to Galaxy. Results New World Development (17 HK/HOLD/HK$4.82/Target: HK$4.45): 1HFY25: Net loss in line with profit warning and primarily caused by inventory impairment; refinancing progress to be the key. Xinyi Solar Holdings (968 HK/HOLD/HK$3.29/Target: HK$3.60): 2024: Below expectations; industry coordination and production discipline crucial to restore mar...
1023 CIMB GROUP HOLDINGS BHD
0968 XINYI SOLAR HOLDINGS LTD.
PLANB PLAN B MEDIA
AWX AEM HOLDINGS
C52 COMFORTDELGRO CORPORATION LIMITED
5347 TENAGA NASIONAL BHD
PTTGC PTT GLOBAL CHEMICAL PUBLIC COMPANY LTD
CPN CENTRAL PATTANA PUBLIC CO. LTD.
BCH BANGKOK CHAIN HOSPITAL PCL
KLK KUALA LUMPUR KEPONG BHD
0763 ZTE CORPORATION CLASS H
FRKN FRENCKEN GROUP LTD
00017 NEW WORLD DEVELOPMENT CO. LTD.
9CI CAPITALAND INVESTMENT LTD
FFB FARM FRESH BHD
- Philip Wong
Consumer - Clouded Outlook
Clouded Outlook Mixed signals prevail as the steep minimum wage hike is offset by stronger spending; despite an uptick in commodities prices, margins appear intact for now. The sector offers a 2024/25 earnings growth at 4.6%/8.9% respectively, and valuations that are near -1.0SD to its five-year mean. However, the sector’s defensiveness may translate to underperformance against the broader market. These confluences of factors underline our MARKET WEIGHT stance on the sector. Top picks: F&N and M...
- Bella Lu Yifei
- Benjaphol Suthwanish
- Benyamin Mikael
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Ken Lee
- Kong Ho Meng
- Philip Wong
Regional Morning Meeting Notes: Friday, December 06, 2024
GREATER CHINA Sector Automobile Weekly: PV sales up 16% yoy last week, beating estimates. Maintain MARKET WEIGHT. Top BUYs: Geely, Fuyao and Desay. INDONESIA Update Vale Indonesia (INCO IJ/HOLD/Rp3,640/Target: Rp3,800) Unlocking its true potential. MALAYSIA Sector Consumer Sector is trading at -1SD to it...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
ERW ERAWAN GROUP
EGH EUREKA GROUP HOLDINGS
INCO VALE INDONESIA
M3I MINTH GROUP LIMITED
002340 GEM CO. LTD. CLASS A
5Z0 ZHONGSHENG GROUP HOLDINGS LTD.
01316 NEXTEER AUTOMOTIVE GROUP LIMITED
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
601689 NINGBO TUOPU GROUP CO. LTD. CLASS A
01585 YADEA GROUP HOLDINGS LTD.
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
ROTH BRITISH AMERICAN TOBACCO BHD
FNH FRASER & NEAVE HOLDINGS BHD
HEIM HEINEKEN MALAYSIA BHD
DLG DIALOG GROUP BHD
CAB CARLSBERG BREWERY MALAYSIA B
MNHB MYNEWS HOLDINGS BHD
TXG 10X GENOMICS INC CLASS A
TGIF 1933 INDUSTRIES
NESZ NESTLE (MALAYSIA) BERHAD
QLG QL RESOURCES BHD
1772 GANFENG LITHIUM CO. LTD. CLASS H
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
MPM MARCO POLO MARINE LTD
MRDIY MR DIY GROUP M BHD
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
FFB FARM FRESH BHD
Z29 029 GROUP SE
02015 LI AUTO INC
600699 JOYSON ELECTRONICS CORP
99SMART 99 SPEED MART RETAIL HOLDINGS BHD
- Philip Wong
Farm Fresh (FFB MK) - 2QFY25: Earnings In Line; Big Uplift In Gross Ma...
2QFY25: Earnings In Line; Big Uplift In Gross Margins Flattish sequential performance but largely meets expectations. Farm Fresh saw a 2QFY25 core net profit of RM26.2m (0.7% qoq, +115% yoy), bringing 1HFY25 core profit to RM115m (+52.2% yoy). Earnings were largely in line with our and consensus’ expectations, accounting for 46% and 47% of our and consensus’ full-year earnings estimates respectively. We expect sequential improvement over the subsequent quarters from increased revenue and enhance...
- Philip Wong
Consumer - Balanced Risk-to-reward Payoff
Balanced Risk-to-reward Payoff The ringgit strength is a net positive on the sector and is a significant boon, particularly for Mr DIY. Upcoming potential policies such as sugar-related measures and revisions to the minimum wage should be well-manoeuvred by the companies. Our MARKET WEIGHT stance on the sector is premised on bargain valuations and decent earnings growth that is balanced with the sector’s defensiveness amid a risk-on outlook.
- Jonathan Koh
- Julia Pan Mengyao
- Kasemsun Koonnara
- Ming San Soong
- Philip Wong
- Stevanus Juanda
Regional Morning Meeting Notes: Monday, September 23, 2024
GREATER CHINA Update Alibaba Group (9988 HK/BUY/HK$87.20/Target: HK$95.00) Key takeaways from Apsara Conference 2024. INDONESIA Update Gojek Tokopedia (GOTO IJ/HOLD/Rp63.00/Target: Rp70.00) Competition in live e-commerce to intensify. MALAYSIA Sector Consumer Sector trades at -1SD to its five-year mean but given its defensiveness, it is likely to underperform on a relative ba...
N2IU MAPLETREE COMMERCIAL TRUST
AJBU KEPPEL DC REIT
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
CPN CENTRAL PATTANA PUBLIC CO. LTD.
CDREIT CDL HOSPITALITY TRUSTS
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
FEHT FAR EAST HOSPITALITY TRUST
ROTH BRITISH AMERICAN TOBACCO BHD
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
FNH FRASER & NEAVE HOLDINGS BHD
HEIM HEINEKEN MALAYSIA BHD
CAB CARLSBERG BREWERY MALAYSIA B
SASSR SASSEUR REAL ESTATE INVESTMENT TRUST
MNHB MYNEWS HOLDINGS BHD
MUST MANULIFE US REAL ESTATE INV
TXG 10X GENOMICS INC CLASS A
NESZ NESTLE (MALAYSIA) BERHAD
QLG QL RESOURCES BHD
UHU UNITED HAMPSHIRE US REIT
MRDIY MR DIY GROUP M BHD
09988 ALIBABA GROUP HOLDING LTD.
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
KORE KEPPEL PACIFIC OAK US REIT
FFB FARM FRESH BHD
GOTO GOJEK TOKOPEDIA TBK PT
123F 123FAHRSCHULE SE
CLAS CAPITALAND ASCOTT TRUST
CLAR CAPITALAND ASCENDAS REIT
PRIME PRIME ROAD POWER PUBLIC CO LTD
ADRO ADARO ENERGY INDONESIA TBK PT
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
Z29 029 GROUP SE
99SMART 99 SPEED MART RETAIL HOLDINGS BHD
- Philip Wong
Farm Fresh (FFB MK) - 1QFY25: Bright Prospects More Than Priced In
1QFY25: Bright Prospects More Than Priced In Sequential sales growth coupled with improving margins underpinned Farm Fresh’s earnings as it largely met expectations. Farm Fresh continues to dominate market share while breaking into new frontiers in adjacent dairy categories. However, we believe its valuations have more than priced in its exciting growth. Farm Fresh will also face stiff competition in the future. Maintain SELL but with a higher target price of RM1.25 as we roll over our valuation...
- Arsit Pamaranont
- Carol Dou Xiao Qin
- Chong Lee Len
- Damon Shen
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Julia Pan Mengyao
- Keith Wee Teck Keong
- Ming San Soong
- Philip Wong
- Ringo Tang Chi Yu
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Sunny Chen
- Ziv Ang Sze Champ
Regional Morning Notes - Thursday, August 29, 2024
GREATER CHINA Results Anhui Conch Cement (914 HK/BUY/HK$16.46/Target: HK$19.50) 1H24: Below expectations; exploring opportunities in overseas markets. CR Mixc (1209 HK/BUY/HK$23.25/Target: HK$33.70) 1H24: Results in line with surprise from special dividend. Haidilao International Holding (6862 HK/BUY/HK$12.34/Target: HK$19.60) 1H24: Core net profit up 13% yoy. Accelerated store opening pace in 2H24; dividend payout expected to remain at reasonable leve...
000858 WULIANGYE YIBIN CO. LTD. CLASS A
INDF PT INDOFOOD SUKSES MAKMUR TBK
EGCO ELECTRICITY GENERATING PUBLIC CO. LTD.
600585 ANHUI CONCH CEMENT COMPANY LIMITED CLASS A
MYOR MAYORA INDAH
1155 MALAYAN BANKING BHD.
UNVR PT UNILEVER INDONESIA TBK
MAPI MITRA ADIPERKASA
3605 ACES ELECTRONIC CO. LTD.
6888 AXIATA GROUP BHD.
002352 S.F. HOLDING CO. LTD. CLASS A
ROTI NIPPON INDOSARI CORPINDO
03690 MEITUAN CLASS B
06862 HAIDILAO INTERNATIONAL HOLDING LTD.
IJM IJM CORP BHD
ICBP INDOFOOD CBP SUKSES MAKMUR T
01801 INNOVENT BIOLOGICS INC.
MPM MARCO POLO MARINE LTD
01209 CHINA RESOURCES MIXC LIFESTYLE SERVICES (RED CHIP)
FFB FARM FRESH BHD
CMRY PT CISARUA MOUNTAIN DAIRY TBK
Z29 029 GROUP SE
MAYBANK MALAYAN BANKING BHD
- Philip Wong
Consumer - Palatable Valuations But Lacks Meaningful Catalysts
Palatable Valuations But Lacks Meaningful Catalysts EPF Account 3 withdrawals may boost a potentially quiet 2Q24. Despite a neutral impact from input costs, potential minimum wage hikes and fuel subsidy rationalisation are concerns. This confluence of factors is balanced by valuations near -1SD to its fiveyear mean, supporting a MARKET WEIGHT stance. However, given the expected risk-on environment for 2024, the sector is likely to offer suboptimal relative returns, justifying our tactical UNDERW...
- Philip Wong
Farm Fresh (FFB MK) - 4QFY24: Margin Recovery Takes A Pause As Feed Co...
4QFY24: Margin Recovery Takes A Pause As Feed Cost Hits 4QFY24 sees flattish gross margins as Farm Fresh misses consensus expectation. Farm Fresh saw a 4QFY24 core net profit of RM18.3m (-10.3% qoq, +119.1% yoy). This brought FY24 core earnings to RM57.0m (-0.8% yoy). Cumulative earnings are in line with our expectation but below consensus’, accounting for 103% and 93% of our and consensus full-year earnings estimates respectively. 4Q24 core profit has been adjusted for the following one-off exc...
- Philip Wong
Consumer - Overhang Casts Shadow Over Sector With Multi-year Low In Va...
Overhang Casts Shadow Over Sector With Multi-year Low In Valuations Interest in the sector remains muted despite a decent results season. There appears to be a wait-and-see approach on the subsidy rationalisation implementation and subsequent spillover effect before interest is piqued. The multi-year low in sector valuations reflects this sentiment. A relatively strong US Dollar further clouds sector margin recovery. Maintain MARKET WEIGHT. Our top picks are Fraser & Neave Holdings (F&N), Mr DIY...
- Philip Wong
Farm Fresh (FFB MK) - 3QFY24: Margins Recover Back To Pre-COVID-19 Lev...
3QFY24: Margins Recover Back To Pre-COVID-19 Levels 3QFY24 earnings see a jump from improved margins but miss consensus expectations. Farm Fresh saw a 3QFY24 core net profit of RM20.4m (67% qoq, 21% yoy). This brought 9MFY24 core earnings to RM38.7m (-21.2% yoy). Cumulative earnings are in line with our expectations but below consensus’, accounting for 70% and 60% of our and consensus’ full-year earnings estimates respectively. 4QFY24 coincides with the Ramadhan fasting month and therefore we an...
- Philip Wong
Consumer - No End In Sight Yet
No End In Sight Yet Interest in the sector could remain lacklustre due to the reforms on subsidy rationalisation and already-tightened disposable spending. These headwinds far outweigh companies potentially benefitting from cheaper input costs, that have inched up against the strengthening US dollar. Despite the sector offering bargain valuations, the sector could underperform given the headwinds. We downgrade the sector to MARKET WEIGHT. Our top picks are F&N, Mr. DIY and Heineken.
- Philip Wong
Farm Fresh (FFB MK) - 2QFY24: Gross Margins Finally Rebound But Earnin...
2QFY24: Gross Margins Finally Rebound But Earnings Disappoint Top-line grew encouragingly sequentially, backed by volume sales and the acquisition of Inside Scoop. Gross margins finally rebounded convincingly, but this was curtailed by opex as cumulative earnings fell below expectations. Farm Fresh continues to dominate market share while breaking into new frontiers in the dairy industry. However, its valuations have more than priced in its exciting growth and recovery prospects for now. Downgra...
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