GREATER CHINA Sector Healthcare Entering a new phase of accelerated growth. Upgrade to OVERWEIGHT. Internet 618 Festival – Evolving consumer trends and continued focus on value for money. Small/Mid Cap Highlights JBM Healthcare (2161 HK/BUY/HK$2.85/Target: HK$3.31) Takeaways from luncheon. INDONESIA Update Kalbe Farma (KL...
GREATER CHINA Results Aier Eye Hospital Group (300015 CH/BUY/Rmb12.72/Target: Rmb17.80) 2024: Satisfactory results; expects strong recovery in 2025. Upgrade to BUY. Ningbo Tuopu Group Co (601689 CH/BUY/Rmb50.96/Target: Rmb83.00) 4Q24: Earnings up 38.5% yoy, in line. Maintain BUY with target price unchanged at Rmb83.00. TAL Educational Group (TAL US/BUY/US$9.36/Target: US$14.00) 4QFY25: Earnings miss amid ramped-up investments in AI-powered learning. INDONESIA Sector Telecommun...
BBL reported 1Q25 earnings of Bt12.6b (+20% yoy, +21% qoq). The results beat our and consensus expectations by 11%. Provision expenses rose 19% qoq in 1Q25. The investment gain had come from the realised gain of the debt securities measured at FVOCI. According to UOB Economist Thailand, we forecast the policy rate will be 1.50% at the end of 2025. Therefore, we cut 2025-27 earnings to reflect the lower lending yield and NIM. Maintain HOLD with a lower target price of Bt154.00.
KEY HIGHLIGHTS Results Bangkok Bank (BBL TB/HOLD/Bt146.50/Target: Bt154.00) 1Q25: Results beat expectations; investment gain boosted the bottom line. TISCO Financial Group (TISCO TB/HOLD/Bt100.00/Target: Bt94.00) 1Q25: Results in line; revises down 2025 credit cost target to 100bp. Update Bumrungrad Hospital (BH TB/BUY/Bt168.00/Target: Bt232.00) Expect weak 1Q25 earnings due to margin pressure.
We came away from BBL’s analyst meeting with a neutral view. Management has provided targets for 2025, which are quite similar to that of 2024, with the exception of loan growth and NIM. BBL’s CEO stated that the bank is considering improving the dividend payment. We will wait for the actual dividend announcement, which should be soon. BBL is also considering a stock buyback, but this will not happen in the near term. Maintain HOLD with a target price of Bt170.00.
KEY HIGHLIGHTS Results Muangthai Capital (MTC TB/BUY/Bt47.25/Target: Bt64.00) 4Q24: Earnings in line; a significant qoq reduction in credit cost. Update Bangkok Bank (BBL TB/HOLD/Bt154.00/Target: Bt170.00) 2025 financial targets similar to 2024’s. Thai Union Group (TU TB/BUY/Bt12.00/Target: Bt15.00) Flat yoy earnings growth for 2025 due to higher tax expenses.
GREATER CHINA Results Baidu Inc (9888 HK/HOLD/HK$90.20/Target: HK$93.00): 4Q24: Solid earnings beat and strong AI cloud revenue growth outlook in 2025. Hysan Development (14 HK/BUY/HK$12.58/Target: HK$14.19): 2024: Positive growth in rental income supported stable DPS. INDONESIA Update Bumi Serpong Damai (BSDE IJ/BUY/Rp1,035/Target: Rp1,440): Expect continuation of all-time high marketing sales in 2025 (+10% yoy). MALAYSIA Results Hartalega Holdings (HART MK/BUY/RM2.61/Target: RM3.14): 3QFY25:...
BBL reported 4Q24 earnings of Bt10.4b (+17% yoy, -17% qoq). The results were in line with our and consensus expectations. Provision expenses fell 7% qoq, resulting in a reduction in credit cost qoq. BBL reported a significant drop in NPL ratio qoq due to good results from debt restructuring in the past. However, we may see increased credit cost and NPL ratio like in the past regardless of an economic recovery. Maintain HOLD with a target price of Bt170.00.
KEY HIGHLIGHTS Results Bangkok Bank (BBL TB/HOLD/Bt151.50/Target: Bt170.00) 4Q24: Results in line with expectations; a significant drop in NPL ratio qoq. Kasikorn Bank (KBANK TB/BUY/Bt160.00/Target: Bt190.00) 4Q24: Results exceed market expectations; maintain normalised credit cost. Krung Thai Bank (KTB TB/BUY/Bt21.80/Target: Bt25.50) 4Q24: Results in line; big drop in credit costs signalling good asset quality. SCB X (SCB TB/BUY/Bt121.50/Target: Bt140.00) 4Q24: Results beat expectation...
GREATER CHINA Results New Oriental Education & Technology Group (EDU US/BUY/US$64.80/Target: US$80.00): 2QFY25: Revenue in line but earnings miss expectations; better growth outlook in 2HFY25. INDONESIA Update Astra International (ASII IJ/BUY/Rp4,910/Target: Rp6,000): Diversifying its businesses to avoid depending solely on automobile. MALAYSIA Results Alpha IVF (ALPHA MK/BUY/RM0.33/Target: RM0.40): 2QFY25: Results within expectations as newly-launched sales office in China sees its maiden con...
GREATER CHINA Economics PMI A strong rebound for non-manufacturing PMI. Sector Macau Gaming Dec 24 GGR below expectations; expect 2025 GGR to recover to 82% of 2019’s level. INDONESIA Update Mitra Keluarga Karyasehat (MIKA IJ/BUY/Rp2,540/Target: Rp3,300) Expect a double-digit earnings growth in 2025 MALAYSIA Sector Heal...
GREATER CHINA Results Hong Kong Exchanges and Clearing (388 HK/BUY/HK$314.80/Target: HK$364.00) 3Q24: Risk-and-reward is more balanced. Upgrade to BUY. Han’s Laser (002008 CH/HOLD/Rmb24.42/Target: Rmb22.70) 3Q24: Net profit misses, but visibility of recovery improving. Downgrade to HOLD. New Oriental Education & Technology Group (EDU US/BUY/US$62.15/Target: US$85.00) 1QFY25: In line; moderated growth outlook in 2QFY25 on low seasonality. Update Xtep International Holdings (...
BBL reported 3Q24 earnings of Bt12.5b (+10% yoy, +6% qoq). The results exceeded our forecasts and consensus estimates by 11% and 9% respectively. Non-II was the key boost to net profit in 3Q24, mainly from investment gains. Credit costs improved qoq. NPL ratio continued to rise qoq. The surprise policy rate cut pressured both NIM and bottom line. We revise our forecasts to incorporate the impact of the rate cute. Due to a lack of catalysts in the near term, we downgrade BBL to HOLD with a lower ...
KEY HIGHLIGHTS Initiate Coverage Plan B Media (PLANB TB/HOLD/Bt7.90/Target: Bt9.00) Positive yoy and qoq earnings growth in 2H24; no new catalyst in 2025. Results Bangkok Bank (BBL TB/HOLD/Bt156.00/Target: Bt178.00) 3Q24: Results beat expectations; policy rate cut pressures NIM and net profit. Downgrade to HOLD. Update Supalai (SPALI TB/HOLD/Bt20.70/Target: Bt20.30) Expect 3Q24 earnings to increase yoy and qoq.
GREATER CHINA Sector Automobile: Weekly: PV sales rebound as the impact of holiday diminishes; 3Q24 results preview. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL, Minth, Tuopu and Desay SV. IT Hardware: AI investment remains robust, non-AI recovery sluggish but starting to see positive signals. Maintain OVERWEIGHT. Update CSPC Innovation Pharmaceutical Co (300765 CH/BUY/Rmb29.28/Target: Rmb37.00): Proposes acquisition of CSPC Baike for Rmb7.6b. INDONESIA Update Bank Neo Commerce (BBYB IJ/BUY/R...
GREATER CHINA Strategy PBOC Turns On The Tap The PBOC announced a series of easing measures on Tuesday. INDONESIA Update Astra International (ASII IJ/BUY/Rp5,275/Target: Rp5,800) About 70% of car and motorcycle sales to benefit from rate cut. Upgrade to BUY. MALAYSIA Results MyNews Holdings (MNHB MK/SELL/RM0.60/Target: RM0.52) 3QFY24: Results improved sequentially but disappointed consensus expectations. Valuations...
GREATER CHINA Sector Hong Kong Property Results wrap-up for Hong Kong developers: Navigating the cycle. INDONESIA Update XL Axiata (EXCL IJ/BUY/Rp2,270/Target: Rp2,900) Fixed broadband ARPU might increase by 10% post-acquisition of ServeCo. MALAYSIA Sector Utilities A strong 2Q24 with companies coming in broadly within expe...
GREATER CHINA Results Aier Eye Hospital Group (300015 CH/BUY/Rmb9.96/Target: Rmb12.50) 1H24: Results lower than expected; striving for growth amid weak economic conditions. ENN Energy Holdings (2688 HK/HOLD/HK$53.50/Target: HK$58.40) 1H24: Below expectations; earnings dragged by sluggish new installation and absence of LNG trading gain. Hysan Development (14 HK/BUY/HK$11.36/Target: HK$15.41) 1H24 Interim results remains stable yoy; retail portfolio being ...
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