reports
- Keith Wee Teck Keong
Banking - Digital Banks – A Complement, Not A Threat
Digital Banks – A Complement, Not A Threat Three of Malaysia’s five licensed digital banks have begun operations. However, with lending still limited and a RM3b asset cap in place during their early years, they are unlikely to pose a near-term threat to traditional banks. Established banks continue to advance their own digital agendas, and retain broader product capabilities and distribution networks. Maintain MARKET WEIGHT, with our sector top picks skewed more to defensive and undervalued bank...
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - 1Q25: Staying Cautious
1Q25: Staying Cautious CIMB’s 1Q25 results are in line, supported by lower provisions, though pre-provision profit declined yoy. Maintain HOLD, with target price unchanged at RM7.70 (1.13x 2025F P/B, 11.1% ROE). While valuations at 1.03x P/B are fair, they align with the historical mean. We remain cautious of forex weakness from regional operations and credit costs amid regional macro headwinds. With earnings growth capped at 3% amid NIM pressure, the risk-reward is balanced, underpinned by a 5....
- Damon Shen
- Jieqi Liu
- Jo Yee Ng
- Johnny Yum
- Keith Wee Teck Keong
- Singapore Research Team
Regional Morning Meeting Notes: Tuesday, June 03, 2025
GREATER CHINA Strategy China Property & Hong Kong Property & Hong Kong Landlord Manageable pressure in mainland property market; improved tourism and retail sales momentum in Hong Kong. INDONESIA Strategy Alpha Picks: Good Performances in May Good performances from most with the exception of GOTO and BUKA. MALAYSIA Results CIMB Group (CIMB MK/HOLD/RM6.93/Target: RM7.70) 1Q25: Earnings in line, underpinned by lower provisions. Mai...
00688 CHINA OVERSEAS LAND & INVESTMENT LIMITED
00683 KERRY PROPERTIES LIMITED
00016 SUN HUNG KAI PROPERTIES LIMITED
00823 LINK REAL ESTATE INVESTMENT TRUST
ANTM PT ANEKA TAMBANG TBK
1023 CIMB GROUP HOLDINGS BHD
01109 CHINA RESOURCES LAND LIMITED
BN2 VALUETRONICS HOLDINGS
SCNR SUNAC CHINA HOLDINGS LTD.
RLF LONGFOR GROUP HOLDINGS LTD.
AMRT SUMBER ALFARIA TRIJAYA TBK PT
AIY IFAST
00014 HYSAN DEVELOPMENT CO. LTD.
C52 COMFORTDELGRO CORPORATION LIMITED
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
01997 WHARF REAL ESTATE INVESTMENT CO. LTD.
D01 DAIRY FARM INTERNATIONAL HOLDINGS LIMITED
MSGB MAH SING GROUP BHD
SSG SHENG SIONG GROUP LTD
ICBP INDOFOOD CBP SUKSES MAKMUR T
PROP PROPNEX LTD
FEH FOOD EMPIRE HOLDINGS LTD
FRKN FRENCKEN GROUP LTD
CSSC CHINA SUNSINE CHEMICAL HOLDINGS LTD
CICT CAPITALAND INTEGRATED COMMERCIAL TRUST
00017 NEW WORLD DEVELOPMENT CO. LTD.
CMRY PT CISARUA MOUNTAIN DAIRY TBK
STM SEATRIUM LTD
DKFT IJ CENTRAL OMEGA RESOURCES
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - Moderating Outlook
Moderating Outlook Management flagged two key downside risks to global trade from the ongoing US tariffs: slower loan growth and potential policy rate cuts, which could pressure NIM. Nonetheless, strong provision buffers offer a solid cushion against asset quality risks. Maintain HOLD on CIMB Group with a lower target price of RM7.70 (1.13x 2025F P/B, 11.1% ROE) after trimming earnings by 5% to reflect these headwinds. Despite value having emerged, the stock continues to trade at historical mean...
- Benjaphol Suthwanish
- Greater China Research Team
- Guan An Tan
- Johnny Yum
- Jonathan Koh
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Krit Tanarattananon
- Philip Wong
- Roy Chen Chengzhi
- Thailand Research Team
Regional Morning Meeting Notes: Tuesday, May 06, 2025
GREATER CHINA Strategy Alpha Picks: May Conviction Calls Add Alibaba, Innovent, Shuanghuan, Trip.com to our BUY list. Take profit on JBM Healthcare and CR Land. Sector Aviation Airlines: 1Q25 results below expectations. Weak fuel prices to support full-year performance. Maintain UNDERWEIGHT. INDONESIA Strategy 1Q25 Results Recap ...
BJC BERLI JUCKER PUBLIC CO. LTD.
A0M4P7 HAN'S LASER TECHNOLOGY INDUSTRY GROUP CO. LTD. CLASS A
00016 SUN HUNG KAI PROPERTIES LIMITED
00291 CHINA RESOURCES BEER (HOLDINGS) CO. LTD.
1023 CIMB GROUP HOLDINGS BHD
ERW ERAWAN GROUP
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
MINT MINOR INTERNATIONAL PUBLIC CO. LTD.
PTTEP PTT EXPLORATION & PRODUCTION PLC
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
CPN CENTRAL PATTANA PUBLIC CO. LTD.
BCH BANGKOK CHAIN HOSPITAL PCL
AD2 AIR CHINA LIMITED CLASS H
1055 CHINA SOUTHERN AIRLINES COMPANY LIMITED CLASS H
0670 CHINA EASTERN AIRLINES CORPORATION LIMITED CLASS H
01810 XIAOMI CORP. CLASS B
MTC MUANGTHAI CAPITAL PCL
RATCH RATCH GROUP PUBLIC CO. LTD.
01801 INNOVENT BIOLOGICS INC.
MRDIY MR DIY GROUP M BHD
09988 ALIBABA GROUP HOLDING LTD.
TIDLOR NGERN TID LOR PCL
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
02618 JD LOGISTICS INC
MXNU ELITE COMMERCIAL REIT MGNT PTE LTD
09961 CTRIP.COM INTERNATIONAL
BTG BETAGRO PUBLIC COMPANY LIMITED
- Keith Wee Teck Keong
Banking - Loan Growth Tapers Off
Loan Growth Tapers Off Loan growth moderated slightly to 5.2% in Mar 25 (Feb 25: +5.3%), driven by softer household lending. In tandem with our downward revision of the 2025 GDP forecast to 4.0% (from 4.8%), we lower our system loan growth projection to a more tempered 5-6% range (previously 6-7%). We maintain our MARKET WEIGHT stance, favouring top sector picks with resilient earnings profiles and potential upside from capital management initiatives.
CIMB Group Holdings Berhad: 1 director
A director at CIMB Group Holdings Berhad sold 300,000 shares at 6.660MYR and the significance rating of the trade was 80/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ye...
- Adrian Loh Tzum Yung
- Carol Dou Xiao Qin
- Claire Wang Kelai
- Gigi Cheuk
- Julia Pan Mengyao
- Kate Luang
- Keith Wee Teck Keong
- Kenny Yong Hui Lim
- Lester Siew
- Ming San Soong
- Paula Ruth
- Roy Chen Chengzhi
- Sunny Chen
- Thanawat Thangchadakorn
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Tuesday, March 25, 2025
GREATER CHINA Sector Internet Monetisation potential and trends of AI agent from the launch of Manus AI. Results CMOC (3993 HK/BUY/HK$6.72/Target: HK$8.70) 2024: Above expectations; copper output up 55% yoy to 650,161 tonnes. COSCO SHIPPING Holdings (1919 HK/BUY/HK$12.58/Target: HK$11.62) 2024: Results in line; more volatile business environment in 2025 but limited valuation ...
2488 ALLIANCE BANK MALAYSIA BHD.
1295 PUBLIC BANK BHD
3993 CHINA MOLYBDENUM CO. LTD. CLASS H
3K1 KINGSOFT CORP. LTD.
TISCO TISCO FINANCIAL GROUP
X2S SINOPHARM GROUP CO. LTD. CLASS H
ERAA ERAJAYA SWASEMBADA
00700 TENCENT HOLDINGS LTD.
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
D01 DAIRY FARM INTERNATIONAL HOLDINGS LIMITED
COSCO SHIPPING HOLDINGS CO. LTD. CLASS H
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
IOI IOI CORP BHD
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
TXG 10X GENOMICS INC CLASS A
ABANK AFFIN BANK BHD
09988 ALIBABA GROUP HOLDING LTD.
1888 KINGBOARD LAMINATES HOLDINGS LTD
09888 BAIDU INC
123F 123FAHRSCHULE SE
BIMB BANK ISLAM MALAYSIA BHD
EPIC 1CM INC
Z29 029 GROUP SE
MAYBANK MALAYAN BANKING BHD
HUIZ HUIZE HOLDING LIMITED
- Keith Wee Teck Keong
Banking - 2H24 Financial Stability Report: Banking System Remains Soun...
2H24 Financial Stability Report: Banking System Remains Sound BNM’s 2H24 Financial Stability Report highlights that while Malaysia is not fully insulated from external risks like US trade policies and geopolitical tensions, the banking system is well-positioned to weather potential headwinds given the strong provision buffers and liquidity position. We maintain MARKET WEIGHT as the risk-reward remains balanced.
- Vincent Khoo Boo Aik
- Keith Wee Teck Keong
Banking - Finely Balanced – Focus On Laggards
Finely Balanced – Focus On Laggards We expect sector earnings growth to ease to 7% in 2025 (from 9% in 2024) due to slower non-interest income growth. While earnings resilience and attractive dividends support the investment case, valuations at +0.5SD above mean and foreign shareholding that is near a five-year high may limit upside. We maintain a MARKET WEIGHT stance, favouring laggards RHB Bank, Hong Leong Bank, and Public Bank for their better riskreward, while adding AMMB for potential capit...
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Gigi Cheuk
- Heidi Mo Jinghui
- Kampon Akaravarinchai
- Kate Luang
- Keith Wee Teck Keong
- Ken Lee
- Posmarito Pakpahan
- Singapore Research Team
- Sunny Chen
Regional Morning Meeting Notes: Friday, March 14, 2025
GREATER CHINA Strategy Small-Mid Cap Monthly Reiterate BUY on JBM Healthcare. Sector Automobile Weekly: PV sales decline wow due to seasonal factors. Maintain MARKET WEIGHT on the sector. Top BUYs: Geely, CATL, Fuyao and Desay SV. Results Ping An Healthcare and Technology Company (1833 HK/BUY/HK$7.72/Target:HK$11.00) 2024: Satisfactory results; expect ...
300014 EVE ENERGY CO. LTD. CLASS A
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
OU8 CENTURION
1023 CIMB GROUP HOLDINGS BHD
2488 ALLIANCE BANK MALAYSIA BHD.
1295 PUBLIC BANK BHD
BMRI PT BANK MANDIRI (PERSERO) TBK
EGH EUREKA GROUP HOLDINGS
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
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
BRC BRC ASIA LTD
TXG 10X GENOMICS INC CLASS A
ABANK AFFIN BANK 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)
HLA HONG LEONG ASIA LTD
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
TWC TIONG WOON CORPORATION HOLDING
BIMB BANK ISLAM MALAYSIA BHD
Z29 029 GROUP SE
MAYBANK MALAYAN BANKING BHD
02015 LI AUTO INC
600699 JOYSON ELECTRONICS CORP
PAN SP PAN-UNITED CORPORATION (PAN SP)
1523 PLOVER BAY TECHNOLOGIES LTD (1523 HK)
532605 JBM AUTO LIMITED
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - 4Q24: Potential Downside Risk To NIM
4Q24: Potential Downside Risk To NIM CIMB’s 4Q24 earnings were in line, supported by a lower effective tax rate, while PBT remained flat. With potential NIM downside risk, limited cost-cutting opportunities, +1SD valuations, and a 10-year-high foreign shareholding (35.4%), the stock faces profit-taking risks. Maintain HOLD with a target price of RM8.12 (1.18x 2025F P/B, 11.6% ROE).
- 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
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - 4Q24 Results: Impacted By NIM Compression
4Q24 Results: Impacted By NIM Compression CIMB Niaga (93%-owned by CIMB Group) reported 4Q24 earnings of Rp1,693b (-2% qoq, +8% yoy), bringing 2024 earnings to Rp6,826b (+5% yoy). This is in line with estimates, accounting for 99-101% of our and consensus full-year forecasts. 2024 earnings growth of 5% was underpinned by a 10% reduction in provisions for bad loans. However, muted total income (+1% due to 31bp NIM contraction and lower treasury income (-5% yoy) held back overall earnings growth.
- Keith Wee Teck Keong
Banking - Loan Growth Tapers Off
Loan Growth Tapers Off Loan growth slowed to 5.5% in Dec 24 (Nov 24: +5.8%), ending the year at the lower end of our 5.5-6.0% forecast due to weaker-than-expected business loan growth. We maintain our 2025 loan growth target of 6.0-7.0%, although the sluggish corporate loans remain a risk. With sector earnings growth likely to trail the broader market’s, we maintain a MARKET WEIGHT stance, favouring laggards like Public Bank, RHB Bank, and Hong Leong Bank.
- Anas Fitri Bin Ahmad
- Benyamin Mikael
- Colin Lee
- Johnny Yum Chung Man
- Jonathan Koh
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Lester Siew
- Thailand Research Team
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Monday, January 13, 2025
GREATER CHINA Sector IT Hardware Solid 2024 Shipment Data; recovery in 2025 remains intact. Maintain OVERWEIGHT . INDONESIA Small/Mid Caps Highlights Bukit Asam (PTBA IJ/NOT RATED/Rp2,690) Strong production outlook towards 2029. MALAYSIA Sector Banking Malaysian banks are likely to take a cautious and gradual approach to capital managemen...
CK CH. KARNCHANG PCL
1023 CIMB GROUP HOLDINGS BHD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
2488 ALLIANCE BANK MALAYSIA BHD.
AMATA AMATA CORP
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
PTBA PT BUKIT ASAM TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
01478 Q TECHNOLOGY (GROUP) CO. LTD.
TRUE TRUE CORP. PUBLIC CO. LTD.
PBBANK PUBLIC BANK BERHAD
SAWAD SRISAWAD CORPORATION PUBLIC COMPANY LTD
AOT AIRPORTS OF THAILAND PUBLIC CO. LTD.
RHBBANK RHB BANK BHD
SOP SARAWAK OIL PALMS BERHAD
HLFG HONG LEONG FINANCIAL GROUP
MTC MUANGTHAI CAPITAL PCL
KIML KIM LOONG RESOURCES BHD
KTB-R KRUNG THAI BANK PCL NVDR
IOI IOI CORP BHD
KLK KUALA LUMPUR KEPONG BHD
AMM AMMB HOLDINGS BHD
CPALL TB CP ALL
HLBK HONG LEONG BANK BERHAD
BNII PT BANK MAYBANK INDONESIA TBK
GENP GENTING PLANTATIONS BHD
ABANK AFFIN BANK BHD
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
OXMU PRIME US REIT
TIDLOR NGERN TID LOR PCL
KORE KEPPEL PACIFIC OAK US REIT
BCOW 1895 BANCORP OF WISCONSIN INC
BIMB BANK ISLAM MALAYSIA BHD
Z29 029 GROUP SE
SDG SD GUTHRIE BHD
STECON STECON GROUP PUBLIC COMPANY LIMITED
- Keith Wee Teck Keong
Banking - Assessing Capital Management Potential
Assessing Capital Management Potential We believe that despite their healthy capital adequacy ratios, Malaysian banks are likely to take a cautious and gradual approach to capital management, prioritising sustainability given the uncertainty surrounding the full impact of Basel 4 implementation on capital ratios. Maintain a MARKET WEIGHT stance, favouring laggards RHB, Hong Leong Bank and Public Bank for their better risk-reward.
- Keith Wee Teck Keong
Banking - Positive Outlook Priced In – Focus On Laggards
Positive Outlook Priced In – Focus On Laggards The sector delivered 3Q24 earnings growth of 11% yoy, driven by lower provisions and robust trading and forex income. 9M24 earnings growth of 8% aligns with our fullyear assumption of 8%. With the sector trading at +1.0SD to its historical mean P/B and earnings growth lagging the KLCI (set to ease in 2025), much of the favourable macro outlook seems priced in. Maintain a MARKET WEIGHT stance, favouring laggards RHB, Hong Leong Bank and Public Bank f...
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - 3Q24: Solid ROE Trajectory Priced In
3Q24: Solid ROE Trajectory Priced In CIMB reported 3Q24 earnings that were broadly in line with expectations. 3Q24 earnings growth was underpinned by lower provisions and strong forex income. However, we think that these positives have been priced in with the stock trading at +1SD above its 10-year historical mean P/B. Maintain HOLD and target price of RM8.12 (1.14x 2025F P/B, 11.5% ROE).
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