reports
- Kong Ho Meng
Sapura Energy (SAPE MK) - 1QFY26: Core Loss As Expected, But Not Brazi...
1QFY26: Core Loss As Expected, But Not Brazil’s Excess Cash Generation SAPE’s 1QFY26 core loss contained lumpy E&C project provisions, which we opine is not a concern as the likelihood of a positive settlement is high. The rig segment’s poor performance is also manageable, with rig rates up by 30% for tender rigs in this region. However, we did not expect the Brazil JV to generate excess FCF one all PLSVs recognize new DCR. These excess FCF can help pare down other sustainable debt, convertibles...
- Alden Gabriel Lam
- Benyamin Mikael
- Jonathan Koh
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Philip Wong
- Tanaporn Visaruthaphong
Regional Morning Meeting Notes: Tuesday, July 01, 2025
INDONESIA Small/Mid Cap Highlight Energi Mega Persada (ENRG IJ/NOT RATED/Rp328) A clear turning point. MALAYSIA Sector Banking Loans growth improved to 5.3% from 5.1% in May 25. The absence of strong earnings catalysts has prompted us to maintain MARKET WEIGHT. Results Sapura Energy (SAPE MK/BUY/RM0.05/Target: RM0.07) 1QFY26: Core losses are in line on poorer rig utilisation and lu...
1023 CIMB GROUP HOLDINGS BHD
2488 ALLIANCE BANK MALAYSIA BHD.
AMATA AMATA CORP
1295 PUBLIC BANK BHD
ENRG ENERGI MEGA PERSADA
5218 SAPURA ENERGY BHD
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
1155 MALAYAN BANKING BHD.
Q5T FAR EAST HOSPITALITY TRUST
TRUE TRUE CORP. PUBLIC CO. LTD.
CDREIT CDL HOSPITALITY TRUSTS
RHBBANK RHB BANK BHD
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
HLFG HONG LEONG FINANCIAL GROUP
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABANK AFFIN BANK BHD
UHU UNITED HAMPSHIRE US REIT
WHA TB WHA CORP PCL
CRPU SASSEUR REIT (S CHIP)
CICT CAPITALAND INTEGRATED COMMERCIAL TRUST
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
OXMU PRIME US REIT
HMN ASCOTT RESIDENCE TRUST
CLCT CAPITALAND CHINA TRUST
KORE KEPPEL PACIFIC OAK US REIT
MXNU ELITE COMMERCIAL REIT MGNT PTE LTD
CLAR CAPITALAND ASCENDAS REIT
BIMB BANK ISLAM MALAYSIA BHD
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
ECOSHOP MK ECO-SHOP MARKETING BHD
- Kong Ho Meng
Oil & Gas - Industry Consolidation Continues In 2025: The Age Of Elect...
Industry Consolidation Continues In 2025: The Age Of Electricity As the International Energy Agency (IEA) terms 2025 as the “Age Of Electricity” where investments focusing on AI, data centers and grid/storage/battery upgrades take centerstage, we see continued consolidation in the local O&G industry, driven by Petronas’ right-sizing exercise, recalibration following the Petros issue, and the shift towards new industries such as CCS, despite near-term upside risk to oil prices from geopolitical e...
- Adrian Loh Tzum Yung
- Damon Shen
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jieqi Liu
- Jo Yee Ng
- Kasemsun Koonnara
- Kong Ho Meng
- Posmarito Pakpahan
- Singapore Research Team
Regional Morning Meeting Notes: Monday, June 30, 2025
GREATER CHINA Strategy Property Weakening sales in China has raised hopes of policy support in July; rebound in HIBOR will test the strength of recovery in Hong Kong property sales. INDONESIA Update Bank Mandiri (BMRI IJ/BUY/Rp5,025/Target: Rp6,000) 5M25: Steady earnings amid NIM pressure. MALAYSIA Sector Oil & Gas ...
OU8 CENTURION
00688 CHINA OVERSEAS LAND & INVESTMENT LIMITED
00683 KERRY PROPERTIES LIMITED
00016 SUN HUNG KAI PROPERTIES LIMITED
01109 CHINA RESOURCES LAND LIMITED
SCNR SUNAC CHINA HOLDINGS LTD.
RLF LONGFOR GROUP HOLDINGS LTD.
5218 SAPURA ENERGY BHD
AIY IFAST
558 UMS HOLDINGS LIMITED
3816 MISC BHD
C52 COMFORTDELGRO CORPORATION LIMITED
BMRI PT BANK MANDIRI (PERSERO) TBK
7113 TOP GLOVE CORPORATION BHD.
AP AP THAILAND
5243 VELESTO ENERGY
UZMA UZMA BHD
YNS YINSON HOLDINGS BHD
NETLINK NETLINK NBN TRUST
SIE SIA ENGINEERING CO LTD
GAM GAMUDA BHD
BAB BUMI ARMADA BERHAD
SPOST SINGAPORE POST LTD
DLG DIALOG GROUP BHD
MMHE MALAYSIA MARINE AND HEAVY EN
SSG SHENG SIONG GROUP LTD
RFMD RAFFLES MEDICAL GROUP LTD
ECW ECO WORLD DEVELOPMENT GROUP
DLUM DELEUM BERHAD
RSTON RIVERSTONE HOLDINGS LTD
00017 NEW WORLD DEVELOPMENT CO. LTD.
PETGAS PETRONAS GAS BHD
- Kong Ho Meng
Sapura Energy (SAPE MK) - Rigs To Hit A Low in 1H25; Brazil PLSVs All ...
Rigs To Hit A Low in 1H25; Brazil PLSVs All the Way Up Armed with a sharper focus, SAPE is on track for its regularisation plan. We expect potentially weaker performance from the rigs in 1HFY26, as long as SAPE is able to address the issue of securing sufficient long-term rig utilisation. Near-term earnings growth should be boosted by Brazil PLSVs transitioning into the new Petrobras multiyear contracts effective 2QFY26. Future growth may come from new areas like Kitar Solutions (circular econom...
- Bella Lu Yifei
- Ejann Hiew
- Gigi Cheuk
- Jo Yee Ng
- Jonathan Koh
- Kate Luang
- Ken Lee
- Kong Ho Meng
- Paula Ruth
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tanapon Cholkadidamrongkul
Regional Morning Meeting Notes: Friday, June 20, 2025
GREATER CHINA Sector Automobile Weekly: Sales surge, driven by price cuts and new model launches. Maintain MARKET WEIGHT on the sector. Top BUYs: Desay SV and Tuopu. Update Haidilao International Holding (6862 HK/BUY/HK$14.44/Target: HK$19.00) Revenue remains under pressure but stable operating margin is expected; increasing consumer preference for food delivery over dining in. Small/Mid Cap Highlights Jacobson Pharma (...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
FCT FRASERS CENTREPOINT TRUST
N2IU MAPLETREE COMMERCIAL TRUST
5218 SAPURA ENERGY BHD
AJBU KEPPEL DC REIT
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
EGH EUREKA GROUP HOLDINGS
M3I MINTH GROUP LIMITED
002340 GEM CO. LTD. CLASS A
5Z0 ZHONGSHENG GROUP HOLDINGS LTD.
Q5T FAR EAST HOSPITALITY TRUST
01316 NEXTEER AUTOMOTIVE GROUP LIMITED
SK6U SPH REIT
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
CDREIT CDL HOSPITALITY TRUSTS
SUN SUNTECH SA
06862 HAIDILAO INTERNATIONAL HOLDING LTD.
KREIT KEPPEL REIT
SGREIT STARHILL GLOBAL REIT
MLT MAPLETREE LOGISTICS TRUST
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
FHT FRASERS HOSPITALITY TRUST
MSGB MAH SING GROUP BHD
SASSR SASSEUR REAL ESTATE INVESTMENT TRUST
2633 JACOBSON PHARMA CORP LTD
MUST MANULIFE US REAL ESTATE INV
1772 GANFENG LITHIUM CO. LTD. CLASS H
UHU UNITED HAMPSHIRE US REIT
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
CICT CAPITALAND INTEGRATED COMMERCIAL TRUST
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
OXMU PRIME US REIT
HMN ASCOTT RESIDENCE TRUST
KORE KEPPEL PACIFIC OAK US REIT
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
CLAR CAPITALAND ASCENDAS REIT
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
MTEL IJ PT DAYAMITRA TELEKOMUNIKASI
Z29 029 GROUP SE
02015 LI AUTO INC
BTG BETAGRO PUBLIC COMPANY LIMITED
600699 JOYSON ELECTRONICS CORP
- Kong Ho Meng
Oil & Gas - Geopolitical Risk May Extend to CCS, Allowing Sector Conso...
Geopolitical Risk May Extend to CCS, Allowing Sector Consolidation Regardless the details to be announced in PM Anwar and Sarawak Premier Jo’s new agreement later this week, we take a view that the Petronas-Petros geopolitical risk may prolong, extending to carbon storage (the next business frontier for the sector), until the shift of monetary flows are more balanced between the regions. If this happens, the sector will have breathing space to consolidate; hence, we continue to advise focusing o...
- Kong Ho Meng
Sapura Energy (SAPE MK) - FY25: Looking Forward To Brazil’s Impact
FY25: Looking Forward To Brazil’s Impact SAPE’s FY25 core loss shows that the rig division remains challenged, but recoveries are materialising in all other segments, especially the JV Brazilian PLSV. We reiterate that the PLSV will be the core boost to SAPE’s future income and reset plans. Downside risk at this price level is very limited, although we estimate that the earliest timeline for SAPE to qualify for PN-17 revoke is only in 2HFY26. We now forecast profit. Maintain BUY and target price...
- Benjaphol Suthwanish
- Chong Lee Len
- Claire Wang Kelai
- Damon Shen
- Ejann Hiew
- Jieqi Liu
- Kenny Yong Hui Lim
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Llelleythan Tan Tan
- Shirley Wang Xueyi
- Stella Guo Yuting
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Friday, March 28, 2025
GREATER CHINA Results China Mengniu Dairy (2319 HK/BUY/HK$19.50/Target: HK$23.60) 2024: Results in line with profit warning; operating margin beat; targeting low single digit revenue growth for 2025. China Merchants Bank (3968 HK/HOLD/HK$45.90/Target: HK$49.00) 2024: Improving fundamentals but valuation is no longer attractive; downgrade to HOLD. China Overseas Property Holdings (2669 HK/BUY/HK$5.47/Target: HK$6.80) ...
XGH ENN ENERGY HOLDINGS LIMITED
CC3 STARHUB LTD
EZQ CHINA MENGNIU DAIRY CO. LTD.
5218 SAPURA ENERGY BHD
Z74 SINGAPORE TELECOMMUNICATIONS LIMITED
02669 CHINA OVERSEAS PROPERTY HOLDINGS LIMITED
M4B CHINA MERCHANTS BANK CO. LTD. CLASS H
NETLINK NETLINK NBN TRUST
MTC MUANGTHAI CAPITAL PCL
CPALL TB CP ALL
06098 COUNTRY GARDEN SERVICES HOLDINGS CO. LTD.
SCB SCB X PUBLIC COMPANY LIMITED
STECON STECON GROUP PUBLIC COMPANY LIMITED
DUSIT TB DUSIT THANI (DUSIT TB)
- Kong Ho Meng
Oil & Gas - Clear Water Muddled By “Grey Areas” — Simply Theatrics Or ...
Clear Water Muddled By “Grey Areas” — Simply Theatrics Or Chess Game? Petronas reported lower profit yoy amid a weakened LNG position and higher costs in 2024, due to various events including the Petronas-Petros development. Lately, some “misunderstandings” on the scope (i. LNG) and the correct DGO date are potentially precarious. If they are proven to be mere theatrics, then these matters should be resolved quickly. However, if the chess game prolongs, it will contribute towards sector risks. W...
- Adrian Loh Tzum Yung
- Anas Fitri Bin Ahmad
- Benjaphol Suthwanish
- Benyamin Mikael
- Chong Lee Len
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Julia Pan Mengyao
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Kong Ho Meng
- Lester Siew
- Ming San Soong
- Philip Wong
- Tanaporn Visaruthaphong
- Wei Xiang Ku
Regional Morning Meeting Notes: Wednesday, February 26, 2025
REGIONAL Sector Plantation Guest speakers at our Palm Oil Seminar 2025 flag diverging palm production prospects between Malaysia and Indonesia, alongside downside risks to CPO prices. GREATER CHINA Results Trip.com (9961 HK/BUY/HK$462.00/Target: HK$630.00) 4Q24: Earnings beat; continuous efforts in international expansion. INDONESIA Small/Mid Cap Highlights Bumi Resources Minerals (BRMS IJ...
AALI ASTRA AGRO LESTARI
5681 PETRONAS DAGANGAN BHD.
ERW ERAWAN GROUP
F34 WILMAR INTERNATIONAL LIMITED
5218 SAPURA ENERGY BHD
SPALI SUPALAI PCL
3816 MISC BHD
5243 VELESTO ENERGY
UZMA UZMA BHD
YNS YINSON HOLDINGS BHD
SOP SARAWAK OIL PALMS BERHAD
T TELEKOM MALAYSIA BHD
BAB BUMI ARMADA BERHAD
LSIP PP LONDON SUMATRA INDONES PT
BAL BUMITAMA AGRI LTD
KIML KIM LOONG RESOURCES BHD
DLG DIALOG GROUP BHD
KLK KUALA LUMPUR KEPONG BHD
CPALL TB CP ALL
DLUM DELEUM BERHAD
GENP GENTING PLANTATIONS BHD
TXG 10X GENOMICS INC CLASS A
NESZ NESTLE (MALAYSIA) BERHAD
PROP PROPNEX LTD
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
WHA TB WHA CORP PCL
TAPG TRIPUTRA AGRO PERSADA PT
8AZ AZTECH GLOBAL LTD
Z29 029 GROUP SE
09961 CTRIP.COM INTERNATIONAL
ITMAX ITMAX SYSTEMS BHD
SDG SD GUTHRIE BHD
BRMS IJ BUMI RESOURCES MINERALS
IOICORP Â IOI CORP BHD
- Kong Ho Meng
Oil & Gas - O&G Landscape Entering “Right-Sizing” Mode
O&G Landscape Entering “Right-Sizing” Mode Petronas has confirmed a downsizing exercise, involving a review of 30% of its staff force, as it aims to be nimble for its survival. While this exercise is not driven by the Petros saga, we are concerned about the potential impact on the sector’s earnings, given its timing will coincide with heavy plant turnarounds. The Shell MDS injunction against Petronas/Petros implies more uncertainties. Should near-term earnings risk materialise, we advise accumul...
- Benjaphol Suthwanish
- Carol Dou Xiao Qin
- Claire Wang Kelai
- Jonathan Koh
- Kitpon Praipaisarnkit
- Kong Ho Meng
- Posmarito Pakpahan
- Sunny Chen
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Thanawat Thangchadakorn
Regional Morning Notes - Monday, February 10
GREATER CHINA Economics Inflation Seasonal demand lifted downstream inflation. Update Innovent Biologics (1801 HK/BUY/HK$36.25/Target: HK$52.00) Expects significant expansion in 2025; targeting revenue of Rmb20b in 2027. INDONESIA Results Bank Syariah Indonesia (BRIS IJ/BUY/Rp3,020/Target: Rp3,450) 2024: Net profit up 22%, above expectations; upgrade earnings forecasts. MALAYSIA...
5681 PETRONAS DAGANGAN BHD.
5218 SAPURA ENERGY BHD
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
3816 MISC BHD
MINT MINOR INTERNATIONAL PUBLIC CO. LTD.
5243 VELESTO ENERGY
UZMA UZMA BHD
YNS YINSON HOLDINGS BHD
BAB BUMI ARMADA BERHAD
DLG DIALOG GROUP BHD
DLUM DELEUM BERHAD
01801 INNOVENT BIOLOGICS INC.
TIDLOR NGERN TID LOR PCL
BRIS BANK BRISYARIAH TBK
CLAR CAPITALAND ASCENDAS REIT
- Kong Ho Meng
Oil & Gas - PAO 2025-27: Rationalisation Across Three Regions
PAO 2025-27: Rationalisation Across Three Regions Despite being published remarkably later than usual, the PAO offers new insights, in particular activity outlook across three regions and clearer plant turnaround distinction between Upstream/Downstream/Gas segments. Aligning with our view, there are cuts in exploration-stage and JU rig outlook, but maintenance demand is largely intact. Plant turnaround is the biggest winner in our opinion, but we identified 2Q25, 2Q26 and 1Q27 as critical period...
- Benjaphol Suthwanish
- Jonathan Koh
- Kampon Akaravarinchai
- Kong Ho Meng
- Stevanus Juanda
Regional Morning Meeting Notes: Friday, January 31, 2025
INDONESIA Update Mayora Indah (MYOR IJ/HOLD/Rp2,500/Target: Rp2,300) Margins will still be negatively affected in 4Q24 and 1H25. MALAYSIA Sector Oil & Gas PAO aligns with our view on cuts in exploration/JU rig demand, but maintenance demand remains intact. Plant turnaround may be the biggest winner, but with high execution risks in 2Q25, 2Q26 and 1Q27. SINGAPORE Sector REITs ...
BJC BERLI JUCKER PUBLIC CO. LTD.
5681 PETRONAS DAGANGAN BHD.
5218 SAPURA ENERGY BHD
AJBU KEPPEL DC REIT
MYOR MAYORA INDAH
3816 MISC BHD
5243 VELESTO ENERGY
UZMA UZMA BHD
YNS YINSON HOLDINGS BHD
KREIT KEPPEL REIT
BAB BUMI ARMADA BERHAD
MINT MAPLETREE INDUSTRIAL TRUST
DLG DIALOG GROUP BHD
MMHE MALAYSIA MARINE AND HEAVY EN
DLUM DELEUM BERHAD
TXG 10X GENOMICS INC CLASS A
ANE CORPORACION ACCIONA ENERGIAS RENOVABLES SA
CLAR CAPITALAND ASCENDAS REIT
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
Z29 029 GROUP SE
- Kong Ho Meng
Oil & Gas - Sarawak And Petronas To Continue Strategic Collaboration I...
Sarawak And Petronas To Continue Strategic Collaboration In Gas Industry With Petros As Sole Gas Aggregator Both Prime Minister Anwar Ibrahim and Sarawak Premier Abang Johari (Abang Jo) released statements that there are no more issues and ambiguity in policy matters related to Petronas Nasional Bhd (Petronas), the country’s national oil company, and Petroleum Sarawak Bhd (Petros), Sarawak’s sole gas aggregator, regarding Sarawak’s gas distribution rights. Petros assumed the sole gas aggregator ...
- Kong Ho Meng
Sapura Energy (SAPE MK) - 9MFY25: Weakness On PLSV Reaches The Bottom
9MFY25: Weakness On PLSV Reaches The Bottom SAPE’s 9MFY25 core profit was in line, despite weaknesses seen in the rig and JV PLSV setbacks before transitioning to new multi-year contracts. Due to the high subsea demand, Sapura Esmeralda secured additional backlog for three months, at spot rates lucrative enough to consider more market opportunities. Supported by Paratus Energy’s outlook upgrade, our contrarian view is that the PLSV will anchor SAPE’s FCF recovery out of PN17 eventually. Retain B...
- Anas Fitri Bin Ahmad
- Bella Lu Yifei
- Gigi Cheuk
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jo Yee Ng
- John Cheong Ming Chern
- Kampon Akaravarinchai
- Kate Luang
- Ken Lee
- Kong Ho Meng
- Llelleythan Tan Tan
- Nurul Nazira Binti Abdullah
- Stevanus Juanda
Regional Morning Notes - Friday, December 13, 2024
GREATER CHINA Strategy Small-Mid Cap Monthly: Crystal International: Eyeing Stock Connect inclusion in Mar 25. Sector Automobile: Weekly: PV sales growth accelerated to 34% yoy last week, beating estimates. Maintain MARKET WEIGHT. Top BUYs: Geely, Fuyao and Desay. INDONESIA Update Aspirasi Hidup Indonesia (ACES IJ/BUY/Rp825/Target: Rp1,200): We prefer ACES’ valuation to that of Mr DIY. MALAYSIA Results Bermaz Auto (BAUTO MK/HOLD/RM2.04/Target: RM2.10): 1HFY25: Results below expectations; lower...
- Kong Ho Meng
Oil & Gas - IWCS Launched As Petronas’ Third Edition Of A True Industr...
IWCS Launched As Petronas’ Third Edition Of A True Industry Collaboration Petronas last week launched the IWCS contracts based on enhanced terms from the previous IWS model, and the four packages were awarded to 34 panel contractors. Expectedly so, the IWCS beneficiaries in our coverage are chosen, including Deleum, Uzma, Velesto Energy and SAPE. Other non-rated stocks like Reservoir Link and T7 Global (NR) also gained. Although the contract values were not revealed, the contract winners are exp...
- Kong Ho Meng
Sapura Energy (SAPE MK) - 1HFY25: Temporarily Weak Rig EBITDA, And Las...
1HFY25: Temporarily Weak Rig EBITDA, And Last Quarter Of E&P Earnings SAPE’s 1HFY25 core profit came in above expectations. While the rig division remains challenged, as long as SAPE maintains execution, we foresee the JV Brazilian PLSV becoming the star segment and providing a major boost to SAPE’s future income and reset plans. On that note, the downside risk at this price level is very limited. Investors who value transparency can attain better guidance from the PLSV partner, Paratus Energy. ...
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