reports
- Chris Hoare
Malaysian Telcos Q4 24 review: Soft Q4; guidance suggests recovery on...
4Q24 service revenue trend remained soft off prepaid weakness, partly offset by Fibre and Enterprise momentum which enabled Maxis to grow faster than CelcomDigi. Industry EBITDA was weaker off a higher comparable base, but guidance suggests a recovery in 2025 in particular for CelcomDigi.
- Chong Lee Len
Telecommunications - 2024: Earnings Within Expectations; Higher-than-e...
2024: Earnings Within Expectations; Higher-than-expected Dividends 2024 earnings rose 9% yoy on Axiata’s better-than-expected earnings. In addition, TIME continued to deliver a high single-digit earnings growth and special dividend. Amid balance sheet optimisation and robust cash flow, TIME, TM and Maxis declared higher dividends in 2024. Key events in 1H25 include the rollout of the 5G network by U Mobile and resolution of DNB’s shareholding. Maintain MARKET WEIGHT. Our top picks are Axiata, Ce...
- Chong Lee Len
- Claire Wang Kelai
- Llelleythan Tan Tan
- Paula Ruth
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Monday, March 10, 2025
GREATER CHINA Economics Inflation Deflationary pressures intensify as CPI turns negative. Trade A weaker start for 2025. INDONESIA Small/Mid Cap Highlights WIR Asia (WIRG IJ/NOT RATED/Rp116) Digital reality tech company with AI features; 9M24 NPAT up 18% yoy. MALAYSIA Sector T...
AMATA AMATA CORP
SAWAD SRISAWAD CORPORATION PUBLIC COMPANY LTD
AXIATA AXIATA GROUP BERHAD
MAXIS MAXIS BHD
T TELEKOM MALAYSIA BHD
MTC MUANGTHAI CAPITAL PCL
SPOST SINGAPORE POST LTD
TDC TIME DOTCOM BHD
TIDLOR NGERN TID LOR PCL
688536 3PEAK INCORPORATED
CDB CELCOMDIGI BHD
Z29 029 GROUP SE
WIRG IJ WIR ASIA
- Chong Lee Len
CelcomDigi (CDB MK) - 4Q24: A Year of Integration
4Q24: A Year of Integration CelcomDigi booked 4Q24 net profit of RM157m (-64% yoy; -64% qoq). Stripping out accelerated depreciation and asset impairment, 4Q24 core net profit came in at RM405m (-20% yoy; -7% qoq) on the back of higher opex. This brings 2024 net profit to RM1,749m (-18% yoy), below our estimates but in line with the street’s. 2024’s total dividend of 14.3 sen/share is close to a 100% dividend payout of core net profit. Maintain BUY with a marginally lower target price of RM4.30,...
- Bella Lu Yifei
- Benjaphol Suthwanish
- Carol Dou Xiao Qin
- Chong Lee Len
- Colin Lee
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Kasemsun Koonnara
- Ken Lee
- Stevanus Juanda
- Sunny Chen
Regional Morning Meeting Notes: Friday, February 14, 2025
GREATER CHINA Sector Automobile Weekly: PV sales stay low, BYD to equip all EVs with DiPilot ADAS. Upgrade BYD to BUY. Maintain MARKET WEIGHT on the sector. Top BUYs: Geely, CATL, Fuyao and Desay. Update AAC Technologies (2018 HK/HOLD/HK$46.55/ Target: HK$48.00) 2024 profit alert – earnings set to beat expectations. Maintain HOLD. The United Laboratories International (3933 HK/HOLD/HK$12.42/Target: H...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
A2XN AAC TECHNOLOGIES HOLDINGS INC.
AIY IFAST
UNVR PT UNILEVER INDONESIA TBK
BH BUMRUNGRAD HOSPITAL PUBLIC CO. LTD.
EGH EUREKA GROUP HOLDINGS
M3I MINTH GROUP LIMITED
CENTEL CENTRAL PLAZA HOTEL
002340 GEM CO. LTD. CLASS A
5Z0 ZHONGSHENG GROUP HOLDINGS LTD.
CPN CENTRAL PATTANA PUBLIC CO. 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
3933 THE UNITED LABORATORIES INTE
DLG DIALOG GROUP 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)
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
CDB CELCOMDIGI BHD
Z29 029 GROUP SE
02015 LI AUTO INC
600699 JOYSON ELECTRONICS CORP
- Chong Lee Len
- Jo Yee Ng
Telecommunications - 9M24: In Line; Rollout Of A Second 5G Network In ...
9M24: In Line; Rollout Of A Second 5G Network In 2025 9M24 results came in broadly within expectations, with sector earnings growing 4% yoy, driven by: a) 2% yoy service revenue growth, with Maxis achieving 4% yoy growth; b) strong underlying demand for home broadband; and c) good cost discipline. Key events to look out for in 1H25 include: a) fixed line competition; b) U Mobile potential 5G consortium; c) government’s exit from DNB, and d) CelcomDigi’s synergistic savings in 2025. Maintain MARK...
- Adrian Loh Tzum Yung
- Chong Lee Len
- Damon Shen
- Desmond Chong Chee Wai
- Jieqi Liu
- Johnny Yum
- Singapore Research Team
- Stevanus Juanda
- Tham Mun Hon
- Wei Xiang Ku
Regional Morning Notes - Tuesday, December 10, 2024
GREATER CHINA Economics Inflation: PPI deflation moderates; weaker-than-expected CPI inflation. Sector Property: Latest Politburo meeting vows stronger fiscal and monetary stimulus as well as unconventional counter-cyclical adjustments for 2025. INDONESIA Strategy Key Takeaways From Regional Strategy Conference: Our top picks are ASII, BMRI, BBNI, BBTN, BRIS, CMRY, KLBF, SMRA, ACES and GOTO. We have an end-25 target of 8,200 for the JCI. MALAYSIA Sector Telecommunications: 9M24 earnings grew 4...
- Chong Lee Len
CelcomDigi (CDB MK) - 3Q24: In Line; Higher Merger Synergies In Coming...
3Q24: In Line; Higher Merger Synergies In Coming Quarters CelcomDigi reported a 3Q24 net profit of RM437m (+4% qoq; -27% yoy) with growth momentum in postpaid, fibre and enterprise. This brings 9M24 net profit to RM1,344m, in line with our expectations. Positively, we expect higher cost synergy savings going into 4Q24 as management lifts the gross synergy target to RM1.1-1.2b for 2024. Maintain BUY. Target price: RM4.50. The stock trades at 8x 2025F EV/EBITDA, -0.5SD below its five-year mean, an...
- Benyamin Mikael
- Chong Lee Len
- Colin Lee
- Jack Lai Yuan Khai
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kitpon Praipaisarnkit
- Roy Chen Chengzhi
Regional Morning Meeting Notes: Tuesday, November 19, 2024
GREATER CHINA Results Xiaomi Corp (1810 HK/BUY/HK$28.80/Target: HK$33.50) 3Q24: Beat across the board; expect sustained growth across all key segments. Maintain BUY and raise target price to HK$33.50. INDONESIA Update Indo Tambangraya Megah (ITMG IJ/SELL/Rp26,850/Target: Rp25,100) Expect profit to decline by 12% yoy in 2025, fuelled by lower ASP. MALAYSIA Results CelcomDigi (CDB MK/BUY/RM3.37/Target: RM4.50) 9M24: In line; stock offers 5% yiel...
- Chris Hoare
CelcomDigi (Buy, TP: RM6, +80%) Q3 24 Quick Take: Lowered service rev...
Service revenue trend remained muted on SIM consolidation and a conscious effort to flush out rotational churners in Prepaid, resulting in a downward revision in service revenue guidance to “flat to slight decrease” from “low single digit increase” prior.
- Bella Lu Yifei
- Chong Lee Len
- Desmond Chong Chee Wai
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum
- Jonathan Koh
- Ken Lee
- Kenny Yong Hui Lim
- Kitpon Praipaisarnkit
- Malaysia Research Team
- Paula Ruth
- Posmarito Pakpahan
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Vincent Khoo Boo Aik
- Wei Xiang Ku
Regional Morning Meeting Notes: Monday, November 04, 2024
GREATER CHINA Strategy Alpha Picks: November Conviction Calls Add Hansoh Pharma, Sands China, CSCEC and BYDE to our BUY list. Add Sinopharm to our SELL list. Sector Aviation – China Airlines: 3Q24 earnings a slight miss; expect losses in seasonally weak 4Q24. Maintain UNDERWEIGHT. Macau Gaming Oct 24 GGR up 7% yoy and...
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
CTRA CIPUTRA DEVELOPMENT
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
JSMR PT JASA MARGA (PERSERO) TBK CLASS B
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
KLBF PT KALBE FARMA TBK
ADVANC ADVANCED INFO SERVICE PUBLIC CO. LTD.
00027 GALAXY ENTERTAINMENT GROUP LIMITED
BMRI PT BANK MANDIRI (PERSERO) TBK
7113 TOP GLOVE CORPORATION BHD.
601668 CHINA STATE CONSTRUCTION ENGINEERING CORP. LTD. CLASS A
X2S SINOPHARM GROUP CO. LTD. CLASS H
5162 VSTECS
599A SANDS CHINA LTD.
ASII PT ASTRA INTERNATIONAL TBK
Q5T FAR EAST HOSPITALITY TRUST
TLKM PT TELKOM INDONESIA (PERSERO) TBK CLASS B
AD2 AIR CHINA LIMITED CLASS H
M4B CHINA MERCHANTS BANK CO. LTD. CLASS H
1055 CHINA SOUTHERN AIRLINES COMPANY LIMITED CLASS H
0670 CHINA EASTERN AIRLINES CORPORATION LIMITED CLASS H
AXIATA AXIATA GROUP BERHAD
MAXIS MAXIS BHD
YNS YINSON HOLDINGS BHD
RHBBANK RHB BANK BHD
T TELEKOM MALAYSIA BHD
GAM GAMUDA BHD
VSI V.S. INDUSTRY BERHAD
MYEG MY EG SERVICES BHD
ECW ECO WORLD DEVELOPMENT GROUP
TXG 10X GENOMICS INC CLASS A
RGB RGB INTERNATIONAL BHD
TDC TIME DOTCOM BHD
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3692 HANSOH PHARMACEUTICAL GROUP
BBTN BANK TABUNGAN NEGARA PERSERO TBK PT
BBNI BANK NEGARA INDONESIA PERSER
EXCL XL AXIATA TBK PT
CMRY PT CISARUA MOUNTAIN DAIRY TBK
CDB CELCOMDIGI BHD
NCKL PT TRIMEGAH BANGUN PERSADA TBK (HARITA NICKEL)
2232 CRYSTAL INTERNATIONAL GROUP LTD
Z29 029 GROUP SE
02015 LI AUTO INC
LAGENDA LAGENDA PROPERTIES BHD
PEKAT PEKAT GROUP BHD
- Chong Lee Len
- Jo Yee Ng
Telecommunications - A Surprise Award Of Second 5G Network To U Mobile
A Surprise Award Of Second 5G Network To U Mobile The second 5G network award to U Mobile comes as a surprise and we expect this to have an overhang on Maxis and CelcomDigi as both heavyweights weigh their options moving forward. We note that U Mobile has invited CelcomDigi and TM to participate in the rollout of its second network. Potential winners are telco contractors such as edotco, OCK, EdgePoint Towers and Naza Communications. Maintain MARKET WEIGHT. The sector currently trades at 6.2x 12...
- Chong Lee Len
- Jo Yee Ng
Telecommunications - 2Q24: In Line; Transition To Dual Wholesale Netwo...
2Q24: In Line; Transition To Dual Wholesale Network For 5G By Year-end 2Q24 results came in within expectations, with sector earnings contracting 5% yoy and 2% qoq. The quarter was characterised by: a) 2% yoy service revenue growth, with Maxis achieving 5% yoy growth; and b) strong underlying demand for home broadband amid price competition. Following the results, we project sector earnings to grow 3%. Maintain MARKET WEIGHT. Our top picks are CelcomDigi, Maxis and TIME dotCom. We expect the sec...
- Chong Lee Len
- Jo Yee Ng
CelcomDigi (CDB MK) - 2Q24: In Line; 2024 Gross Synergy Savings To Sur...
2Q24: In Line; 2024 Gross Synergy Savings To Surpass Previous Guidance CELCOMDIGI reported a 2Q24 net profit of RM406m (+8% qoq; 18% yoy). Excluding a RM14m one-off cost booked in the quarter, 2Q24 core net profit came in at RM420m (-14% qoq; -20% yoy), in line with our expectations. Management expects 2024 gross synergy to surpass the previous guidance of RM700m, partly offset by integration costs. Maintain BUY with a DCF-based target price of RM4.50. The stock trades at 8.4x EV/EBITDA, -0.5SD ...
- Adrian Loh Tzum Yung
- Anas Fitri Bin Ahmad
- Carol Dou Xiao Qin
- Chong Lee Len
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Ringo Tang Chi Yu
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Sunny Chen
- Thanawat Thangchadakorn
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, August 20, 2024
GREATER CHINA Results China Resources Beer (291 HK/BUY/HK$24.00/Target: HK$41.30): 1H24: Premiumisation lags; trim sales volume and profit targets. China Resources Building Materials Tech (1313 HK/BUY/HK$1.57/Target: HK$1.83): 1H24: Below expectations; hopeful on pent-up demand in 2H24. CSPC Innovation Pharmaceutical Co (300765 CH/BUY/Rmb23.39/Target: Rmb33.00): 1H24: Results satisfactory; R&D and CSPC Baike acquisition well on track. Han’s Laser (002008 CH/BUY/Rmb20.25/Target: Rmb23.30): 2Q24: ...
MAPI MITRA ADIPERKASA
000333 MIDEA GROUP CO. LTD. CLASS A
IJM IJM CORP BHD
CAB CARLSBERG BREWERY MALAYSIA B
SSG SHENG SIONG GROUP LTD
KLK KUALA LUMPUR KEPONG BHD
PROP PROPNEX LTD
300765 CSPC INNOVATION PHARMACEUTICAL CO L
CDB CELCOMDIGI BHD
1313 CHINA RESOURCES BUILDING MATERIALS TECHNOLOGY HOLDINGS LTD
2008 HANS LASER TECHNOLOGY CO LTD
- Chong Lee Len
CelcomDigi (CDB MK) - Flow Through Of Merger Synergies
Flow Through Of Merger Synergies Network integration works are expected to yield savings of RM5.5b over five years. With a target completion of 75% by end-24, we believe CelcomDigi is set to see a flow through in merger savings by 2H25. The stock offers a three-year earnings CAGR of 15% and 5% dividend yield. The potential monetisation of its tower assets may be a catalyst. The stock has retraced 10% ytd and we see emerging value. Upgrade to BUY with an unchanged DCF-based fair value of RM4.50.
- Bella Lu Yifei
- Benjaphol Suthwanish
- Chong Lee Len
- Heidi Mo Jinghui
- Jack Lai Yuan Khai
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kampon Akaravarinchai
- Ken Lee
- Ming San Soong
- Paula Ruth
- Tanaporn Visaruthaphong
- Thanawat Thangchadakorn
Regional Morning Notes - Thursday, July 25, 2024
GREATER CHINA Results ASMPT (522 HK/BUY/HK$88.00/Target: HK$118.50): 2Q24: Weak results; advanced packaging progress remains intact. Maintain BUY. Ningbo Tuopu Group Co (601689 CH/BUY/Rmb35.41/Target: Rmb86.00): 2Q24: Earnings up 25% yoy/qoq, in line. Maintain BUY. Target price: Rmb86.00. Update Pinduoduo (PDD US/BUY/US$134.24/Target: US$200.00): Navigating against unwavering geopolitical concerns. INDONESIA Small/Mid Cap Highlights Japfa Comfeed Indonesia (JPFA IJ/NOT RATED/Rp1,630): 1Q24 reve...
- Chong Lee Len
- Wei Xiang Ku
Telecommunications - Transition To Dual Wholesale Network For 5G By En...
Transition To Dual Wholesale Network For 5G By End-24 Telcos have been invited by the government to submit proposals to develop Malaysia’s second 5G network. The government also said that telcos are restricted to holding equity only in one entity. As such, consortiums forming entity B (second network) will sell their share in DNB. The government will also exit DNB. We expect the government to announce a second network by end-24. Maintain MARKET WEIGHT. Top picks are TIME and MAXIS.
- Chong Lee Len
- Wei Xiang Ku
Telecommunications - 1Q24: Results In Line; Transition To Dual Wholesa...
1Q24: Results In Line; Transition To Dual Wholesale Network For 5G In 2H24 1Q24 results were within expectations with earnings growth of 14% yoy on the back of a 2% service revenue growth, higher wholesale income (as TM and TIME benefit from burgeoning data centre build-ups) and good cost discipline. We expect the sector to transition to a dual wholesale network by 21 June. Key events to look out for in 2H24 include: a) fixed-line price competition, and b) synergistic savings from CelcomDigi. Ma...
- Anas Fitri Bin Ahmad
- Chong Lee Len
- Heidi Mo Jinghui
- Jo Yee Ng
- Kasemsun Koonnara
- Limartha Adhiputra
- Llelleythan Tan Tan
- Shirley Wang Xueyi
- Stella Guo Yuting
- Wei Xiang Ku
Regional Morning Meeting Notes: Wednesday, June 12, 2024
GREATER CHINA Sector Consumer Dragon Boat Festival: Consumer services, experiential spending, and lower-tier cities lead growth. INDONESIA Update Vale Indonesia (INCO IJ/HOLD/Rp4,300/Target: Rp4,300) Issuance of new shares to complete the divestment process. MALAYSIA Sector Telecommunications 1Q24 earnings up 14% yoy on the back ...
AS7 ANTA SPORTS PRODUCTS LTD.
CK CH. KARNCHANG PCL
00291 CHINA RESOURCES BEER (HOLDINGS) CO. LTD.
600132 CHONGQING BREWERY CO.LTD CLASS A
000858 WULIANGYE YIBIN CO. LTD. CLASS A
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
EZQ CHINA MENGNIU DAIRY CO. LTD.
02331 LI NING COMPANY LIMITED
6012 MAXIS BHD.
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
600887 INNER MONGOLIA YILI INDUSTRIAL GROUP CO. LTD. CLASS A
00027 GALAXY ENTERTAINMENT GROUP LIMITED
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
INCO VALE INDONESIA
6888 AXIATA GROUP BHD.
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
599A SANDS CHINA LTD.
000333 MIDEA GROUP CO. LTD. CLASS A
603288 FOSHAN HAITIAN FLAVOURING & FOOD CO. LTD. CLASS A
0168 TSINGTAO BREWERY CO. LTD. CLASS H
06862 HAIDILAO INTERNATIONAL HOLDING LTD.
T TELEKOM MALAYSIA BHD
BAUTO BERMAZ AUTO BHD
BRC BRC ASIA LTD
TXG 10X GENOMICS INC CLASS A
1368 XTEP INTERNATIONAL HOLDINGS
01876 BUDWEISER BREWING CO. APAC LTD.
TDC TIME DOTCOM BHD
6186 CHINA FEIHE LTD
MNSO MINISO GROUP HOLDING ADS (N SHARES)
06690 HAIER SMART HOME CO. LTD. CLASS H
09922 JIUMAOJIU INTERNATIONAL HOLDINGS LTD.
ME 23ANDME HLDG CO
CDB CELCOMDIGI BHD
TIMECOM 029 GROUP SE
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