reports
- Kong Ho Meng
Oil & Gas - FPSO Outlook Weighed Against Energy Transition
FPSO Outlook Weighed Against Energy Transition While the FPSO industry benefits from an all-time high backlog, we think players should sharpen their focus on decarbonisation/clean energy pathways, as we foresee diverging patterns in this “new field growth” depending on various factors. For example, it seems solar and wind will not be part of Bumi Armada and Yinson Production (the FPSO arm), even though wind is officially under SBM Offshore. MISC remains as a green transportation arm though it ma...
- Kong Ho Meng
Petronas Dagangan (PETD MK) - 2Q24: Results In Line Despite SKDS2.0 Im...
2Q24: Results In Line Despite SKDS2.0 Impact, But Clear Growth Plans Required PETD’s 2Q24 core profit improved qoq, suggesting that the costs and volume impact from diesel retargeting (effective Jun 24) might have been mild. Management guidance may help to allay the 30% discount we had applied on valuations for this risk. Having said that, we think securing its local earnings base is no longer sufficient, and a better long-term re-rating may emerge, should PETD begin to align itself with Petrona...
- Adrian Loh Tzum Yung
- Damon Shen
- Jack Goh Tooan Orng
- Jieqi Liu
- Jo Yee Ng
- Julia Pan Mengyao
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Ming San Soong
- Posmarito Pakpahan
- Shirley Wang Xueyi
- Stella Guo Yuting
Regional Morning Notes - Wednesday, August 21, 2024
GREATER CHINA Results Kuaishou Technology (1024 HK/BUY/HK$44.40/Target: HK$70.00): 2Q24: Solid earnings beat; strategic focus on AIGC monetisation. Poly Property Services (6049 HK/BUY/HK$25.25 /Target: HK$37.30): 1H24: Earnings in line on improved operational efficiency; expansion and cash generation capabilities weakened. Tongcheng Travel Holdings (780 HK/HOLD/HK$13.12/Target: HK$14.00): 2Q24: Results in line; shifting focus to margin improvement amid soft macro environment. Downgrade to HOLD. ...
- Kong Ho Meng
Oil & Gas - Cautiousness in Business Enquiries: Signs Of Local O&G Cap...
Cautiousness in Business Enquiries: Signs Of Local O&G Capex Slowdown? Geopolitical risk may be the norm in the new world order, but we think this has been happening in Malaysia for the past six years. The highlight of this saga is when Petros took over the role of sole gas aggregator of Sarawak’s gas business, followed by major changes in Petronas’ top leadership roles. Although nothing is confirmed, channel checks suggest activities are slowing down. We advocate defensive stocks that are diver...
- Kong Ho Meng
Oil & Gas - Malaysia’s Positioning As Regional CCS Storage Hub
Malaysia’s Positioning As Regional CCS Storage Hub As we predicted, 2024 may be the year to evaluate Malaysia/Petronas’ CCS milestone. This is because Asia’s CCS projects are maturing, as major industries (ie emitters) take concrete action on emission targets. Malaysia is a clear beneficiary as a CCS storage hub, not only due to its local O&G fields and industries, but also strategically overseas emitters especially Japan and Korea. MISC, our sector top pick, is also a clear CCS beneficiary (LCO...
- Benjaphol Suthwanish
- Jonathan Koh
- Julia Pan Mengyao
- Kasemsun Koonnara
- Kenny Yong Hui Lim
- Kong Ho Meng
- Ming San Soong
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Thanawat Thangchadakorn
- Wei Xiang Ku
Regional Morning Meeting Notes: Monday, July 15, 2024
GREATER CHINA Economics Money Supply Money supply growth slows further. Trade Wider trade surplus in June on robust exports growth. Sector Banking Implications of PBOC’s bond sales for China banks. Update JD.com (9618 HK/BUY/HK$112.00/Target: HK$150.00) 2Q24 results ...
TISCO TISCO FINANCIAL GROUP
5218 SAPURA ENERGY BHD
EA ENERGY ABSOLUTE PUBLIC CO. LTD.
SCC SIAM CEMENT PUBLIC CO. LTD.
5243 VELESTO ENERGY
UZMA UZMA BHD
MISC MISC BHD
YNS YINSON HOLDINGS BHD
MMHE MALAYSIA MARINE AND HEAVY EN
PRIME PRIME ROAD POWER PUBLIC CO LTD
Z29 029 GROUP SE
HUME HUME CEMENT INDUSTRIES BHD
- Kong Ho Meng
Oil & Gas - MISC-Bumi Armada Is Better Off Collaborating In Certain Pr...
MISC-Bumi Armada Is Better Off Collaborating In Certain Projects Speculations of a merger might have lifted Bumi Armada’s (BAB) share price in the past month. While combining both FPSO fleets may propel the merged entity to Modec’s fleet size, alongside complementary geographical FPSO market presence, the stumbling blocks are too great in our opinion. There is a lack of financial synergies from the non-FPSO segments. If any, we think a collaboration in certain projects may generate more positive...
- Kong Ho Meng
Oil & Gas - Petronas Set To Embrace Volatilities In Net Zero Transitio...
Petronas Set To Embrace Volatilities In Net Zero Transition Petronas’ 1Q24 results showed that no business can escape the effects of volatility, as it experienced lower averaged realised prices, but higher costs. The local capex allocation for O&G and upstream achievements is overshadowed by the many uncertainties of existing projects (PRefChem) and the commercial settlement agreements with East Malaysia. Petronas remains steadfast in its target RM142b upstream capex for five years, with its foc...
- Chong Lee Len
- Damon Shen
- Jacquelyn Yow Hui Li
- Jieqi Liu
- Jonathan Koh
- Kampon Akaravarinchai
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Krit Tanarattananon
- Leow Huey Chuen
- Paula Ruth
- Thailand Research Team
Regional Morning Meeting Notes: Tuesday, June 4, 2024
GREATER CHINA Sector Property - Hong Kong Limited Downside Risks To Property Price in Near Term; Watch For Policy Support For Hong Kong Tourism. INDONESIA Update XL Axiata (EXCL IJ/BUY/Rp2,320/Target: Rp2,900) 2024 net profit could grow 45% yoy, partly driven by network improvement. MALAYSIA Sector Oil & Gas Petrona...
00016 SUN HUNG KAI PROPERTIES LIMITED
FCT FRASERS CENTREPOINT TRUST
00823 LINK REAL ESTATE INVESTMENT TRUST
1023 CIMB GROUP HOLDINGS BHD
CPIN PT CHAROEN POKPHAND INDONESIA TBK
5681 PETRONAS DAGANGAN BHD.
5218 SAPURA ENERGY BHD
AJBU KEPPEL DC REIT
TU THAI UNION GROUP PUBLIC COMPANY LIMITED
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
00014 HYSAN DEVELOPMENT CO. LTD.
5347 TENAGA NASIONAL BHD
AW9U FIRST REAL ESTATE INVESTMENT TRUST
O5RU AIMS APAC REIT
SK6U SPH REIT
5243 VELESTO ENERGY
01997 WHARF REAL ESTATE INVESTMENT CO. LTD.
UZMA UZMA BHD
MISC MISC BHD
CDREIT CDL HOSPITALITY TRUSTS
YNS YINSON HOLDINGS BHD
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
BTS BTS GROUP HOLDINGS PUBLIC CO. LTD.
FEHT FAR EAST HOSPITALITY TRUST
BAB BUMI ARMADA BERHAD
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
FHT FRASERS HOSPITALITY TRUST
DLG DIALOG GROUP BHD
MMHE MALAYSIA MARINE AND HEAVY EN
CPALL TB CP ALL
SDPL SIME DARBY PLANTATION BHD
DLUM DELEUM BERHAD
SASSR SASSEUR REAL ESTATE INVESTMENT TRUST
MUST MANULIFE US REAL ESTATE INV
TXG 10X GENOMICS INC CLASS A
TGIF 1933 INDUSTRIES
UHU UNITED HAMPSHIRE US REIT
CICT CAPITALAND INTEGRATED COMMERCIAL TRUST
SCGP SCG PACKAGING PCL
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
TIDLOR NGERN TID LOR PCL
FLT FRASERS LOGISTICS & COMMERCIAL TRUST
KORE KEPPEL PACIFIC OAK US REIT
00017 NEW WORLD DEVELOPMENT CO. LTD.
DHLT DAIWA HOUSE LOGISTICS TRUST
DCREIT DIGITAL CORE REIT
EXCL XL AXIATA TBK PT
MPACT MAPLETREE PAN ASIA COMMERCIAL TRUST
123F 123FAHRSCHULE SE
BCOW 1895 BANCORP OF WISCONSIN INC
CLAS CAPITALAND ASCOTT TRUST
CLAR CAPITALAND ASCENDAS REIT
PRIME PRIME ROAD POWER PUBLIC CO LTD
Z29 029 GROUP SE
1737144D TB BETAGRO GROUP
- Kong Ho Meng
Petronas Dagangan (PETD MK) - 1Q24: Results In Line, Embracing Fuel Su...
1Q24: Results In Line, Embracing Fuel Subsidy Rationalisation PETD’s 1Q24 core profit is in line, while fuel volume growth appeared to have experienced adjustments (expectedly) as the economy embraces the upcoming targeted diesel subsidy rationalisation. PETD reported achieving new milestones, such as commercial growth in high-margin segments like aviation and upstream. The retail space continues to be competitive. Hence, PETD is undertaking a revolutionary digital transformation for the retail ...
- Bella Lu Yifei
- Desmond Chong Chee Wai
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- John Cheong Ming Chern
- Julia Pan Mengyao
- Kasemsun Koonnara
- Ken Lee
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Ming San Soong
- Nurul Nazira Binti Abdullah
Regional Morning Notes: Thursday, May 23, 2024
GREATER CHINA Sector Automobile Weekly: PEV sales drop wow due to high comparison base. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL and Tuopu. Top SELLs: Li Auto and XPeng. Results Kuaishou (1024 HK/BUY/HK$58.15/Target: HK$85.00) 1Q24: Solid earnings beat; softer 2Q24; HK$16b share repurchase plan. Pinduoduo (PDD US/BUY/US$145.45/Target: US$200.00) 1Q24: Robust earnings beat; stro...
300014 EVE ENERGY CO. LTD. CLASS A
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
5168 HARTALEGA HOLDINGS BHD.
STEC SINO-THAI ENGINEERING & CONSTRUCTION PCL
5681 PETRONAS DAGANGAN BHD.
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
KBANK KASIKORNBANK PUBLIC CO. LTD.
SCB SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
M3I MINTH GROUP LIMITED
HANA HANA MICROELECTRONICS PCL
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
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
PDD PINDUODUO INC. SPONSORED ADR CLASS A
KCE KCE ELECTRONICS PUBLIC CO. LTD.
SSG SHENG SIONG GROUP LTD
CPALL TB CP ALL
SWB SUNWAY BHD
TXG 10X GENOMICS INC CLASS A
338 WEICHAI POWER
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)
01024 KUAISHOU TECHNOLOGY CLASS B
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
123F 123FAHRSCHULE SE
CEB CAPE EMS BERHAD
Z29 029 GROUP SE
02015 LI AUTO INC
09868 XPENG INC
BTG BETAGRO PUBLIC COMPANY LIMITED
600699 JOYSON ELECTRONICS CORP
- Kong Ho Meng
Oil & Gas - Volatility During Transition Period Of Retargeting Fuel Su...
Volatility During Transition Period Of Retargeting Fuel Subsidies While the implementation is with good intentions, the retargeting of diesel subsidy (under the SKDS 2.0 system) could lead to short-term stock volatilities for PetDag and Petron Malaysia, as well as the commercial/logistics companies involved. Ideally, the utilisation of the new fleet card system should have started on 1 Apr 24 in order to be on track for a full Jun 24 implementation, although there are some teething issues, espec...
- Kong Ho Meng
Oil & Gas - Petronas 2023: Commendable Financials Amid Rising Costs
Petronas 2023: Commendable Financials Amid Rising Costs Unlike previous years (of capex deferrals), Petronas’ 2023 capex is a testament that it is not only playing catch-up on its core business, but is also remaining true to its energy transition pathways. However, Petronas explicitly highlighted that domestic costs surged (despite lower revenue), and there is a low likelihood of oil prices and vessel rates continuing with the upward trend, while execution risks remain prevalent. We take the opp...
- Kong Ho Meng
Oil & Gas - OTC Asia 2024: Driving Excellence And Collaboration
OTC Asia 2024: Driving Excellence And Collaboration Petronas’ trademark Offshore Technology Conference (OTC) Asia 2024 is viewed as a successful platform that drives innovation (and showcasing of technology) and engagements. The industry is embracing the unknowns of energy transition and security, hence driving collaborations. Although none of them are easily near-term developments include Deleum, Uzma, MMHE, MISC, Sapura Energy and T7Global (NR). We retain sector OVERWEIGHT for now.
- Kong Ho Meng
Petronas Dagangan (PETD MK) - 2023: Results Miss Expectation On Rising...
2023: Results Miss Expectation On Rising Costs For Non-Fuel Segment PETD’s 2023 profit missed our expectations as the non-fuel segment fell to losses towards 4Q23. Cash flow weakened towards 4Q23, which could be due to timing differences of claiming back subsidy receipts. However, we do not see a clear rerating for 2024, amid uncertainties regarding fuel price movements and targeted subsidy timing. Retain HOLD, adjust target price to RM25.00.
- Adrian Loh Tzum Yung
- Arsit Pamaranont
- Bella Lu Yifei
- Desmond Chong Chee Wai
- Heidi Mo Jinghui
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Ken Lee
- Kong Ho Meng
- Limartha Adhiputra
- Llelleythan Tan Tan
- Tanaporn Visaruthaphong
Regional Morning Notes - Tuesday, February 27, 2024
GREATER CHINA Sector IT Hardware: Updates on MWC 2024 and read-through on FII from NVIDIA’s results. Maintain OVERWEIGHT. Results Li Auto (2015 HK/SELL/HK$139.90/Target: HK$100.00): 4Q23: Earnings beat estimates on changes of accounting assumptions. Maintain SELL. Target price: HK$100.00. INDONESIA Results Indo Tambangraya Megah (ITMG IJ/SELL/Rp25,800/Target: Rp21,000): 4Q23: NPAT edges down 4.4% qoq following lower ASP, below expectations. MALAYSIA Results AMMB Holdings (AMM MK/HOLD/RM4.31/...
- Kong Ho Meng
Oil & Gas - Petronas Activity Outlook (PAO): The Deciding Periods For ...
Petronas Activity Outlook (PAO): The Deciding Periods For Catch-Up Regardless of oil price levels (as long as stabilised at >US$70/bbl), we noted that PAO 2024-26 maintains high demand for fabrication, rigs and maintenance sections, alongside major outlook upgrades on sections that desperately needed catch-up from deferred works like decommissioning (vs past PAO). We see limited upside potential for major players exposed to rigs and HUC/MCM (on high base effect). We still see catalysts for yards...
- Kong Ho Meng
Oil & Gas - Petronas 9M23: Embracing New Challenges In Net-Zero Pathwa...
Petronas 9M23: Embracing New Challenges In Net-Zero Pathways Petronas’ 9M23 results continued to show conservatism in capital allocation, while combating rising costs and energy transition challenges. While the O&G sector’s earnings recently benefitted from escalating contract/day rates, we see that 2024 is a potential period of consolidation. As day rates may have peaked, rising business costs may emerge as a key risk, simply because manpower and vessel resources are often shared between both t...
- Kong Ho Meng
Petronas Dagangan (PETD MK) - 3Q23: Results In Line, Fuel Subsidy May ...
3Q23: Results In Line, Fuel Subsidy May Still Surprise On Volatility PETD’s 9M23 profit is in line, as we think consensus had assumed that the nation’s fuel consumption is somewhat already reflecting a subsidy rationalisation scenario. However, there may be more volatilities ahead, especially on the timing/implementation mode of targeted subsidies, and most importantly working capital buffers required. We retain our forecasts as PETD’s balance sheet is well-prepared for such uncertainties. Retai...
- Bella Lu Yifei
- Chong Lee Len
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- Kampon Akaravarinchai
- Ken Lee
- Kong Ho Meng
- Llelleythan Tan Tan
- Nurul Nazira Binti Abdullah
- Paula Ruth
- Wei Xiang Ku
Regional Morning Notes - Friday, November 24, 2023
GREATER CHINA Sector Automobile: Weekly: China’s PEV retail sales up 37% yoy/2% mom during 1-19 Nov 23, in line. Maintain UNDERWEIGHT. Remove BYD from top pick list. Top picks: CATL and Li Auto. INDONESIA Results XL Axiata (EXCL IJ/BUY/Rp2,090/Target: Rp2,400): 3Q23: Fixed broadband subscribers surge 84% yoy. Upgrade to BUY. MALAYSIA Results Genting Malaysia (GENM MK/BUY/RM2.58/Target: RM3.50): 3Q23: Historical high quarterly earnings within expectations, mainly fuelled by RWG’s stronger opera...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.