Our Alpha Picks outperformed compared the market (+0.9% vs -0.7%) in Apr 24. In Apr 24, the global market focused on earnings results. The SET index slightly decreased by 0.7% in Apr 24. For May 24, our picks are ADVANC, BSRC, BTG, CPALL, CPF, ERW, MAJOR, TFG, TIDLOR and TU.
GREATER CHINA Sector Macau Gaming Apr 24 GGR down 5% mom; downgrade to MARKET WEIGHT. Results China Construction Bank (939 HK/BUY/HK$5.10/Target: HK$6.00) 1Q24: Results in line with better NIM performance. LONGi Green Energy Technology (601012 CH/SELL/Rmb18.20/Target: Rmb14.38) 2023/1Q24: Below expectations; inventory write-down wipes out earnings. Downgrade to SELL. PICC Property and Casualty (2328 HK/BUY/HK$9.71/Target: HK$11.70) 1Q24: Earnings miss on higher COR and lower investment income...
GREATER CHINA Strategy Alpha Picks: April Conviction Calls: Adding AIA, Midea, Hansoh Pharmaceutical, Shenzhen Inovance and Trip.com to our BUY list, with SELL calls on BYD, EVE Energy, and Li Auto. INDONESIA Strategy Alpha Picks: Outperformance In Mar 24 and 1Q24: Our picks are ACES, BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, and AKRA. MALAYSIA Strategy Alpha Picks: Expanding The Variety Of Events Bets: Our Alpha Picks trounced the KLCI in Mar 24. Apr 24 picks: GENM, Inari, Mah Sing, MrDIY, MY...
INDONESIA Results Indofood Sukses Makmur (INDF IJ/BUY/Rp6,375/Target: Rp11,000) 4Q23: Ahead of consensus expectation. Merdeka Copper Gold (MDKA IJ/HOLD/Rp2,280/Target: Rp2,500) 4Q23: Bottom line still weak but outlook remains prospective; results below expectations. MALAYSIA Sector Banking Feb 24 loans growth ticks up by 1bp to 5.8%. However, leading growth indicators weaken. Maintain MARKET WEIGHT in the absence of strong earnings catalysts. Update VS Industry (VSI MK/BUY/RM0.88/Target: R...
We expect TU to post 1Q24 earnings of Bt945m, up 18.8% yoy but down 18.4% qoq due to the seasonal effect and lower gross margin. The yoy earnings improvement was mainly from the pet food business. We expect 2Q24 to grow both yoy and qoq on the back of better profitability. 2024’s core earnings are expected to grow 36.3% yoy. Maintain BUY. Target price: Bt20.00.
KEY HIGHLIGHTS Strategy Alpha Picks: Apr 24 Portfolio Stick with beneficiaries of a weakening Thai baht and beneficiaries of a lower policy rate. Cut losses on EGCO, Add TIDLOR and TFG. Update Thai Union Group (TU TB/BUY/Bt14.50/Target: Bt20.00) Unexciting 1Q24 earnings as previously expected, but to improve in 2Q24.
GREATER CHINA Strategy Alpha Picks: March Conviction Call: Adding CMB, COLI, CR Beer, Kuaishou and TUL to our BUY list, closing out SELL calls. INDONESIA Strategy Alpha Picks: Significant Outperformance In Feb 24: Our picks are BBTN, CMRY, SIDO, EXCL, MAPI, JSMR, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Focusing On Earnings Momentum: Our Alpha Picks underperformed the KLCI in Feb 24 (-0.9% vs 2.5%). Mar 24 picks significantly feature companies with good earnings momentum. SINGAPORE...
TU reported a 4Q23 core profit of Bt1,158m, down yoy and qoq as a result of worsened performance from the ambient segment and higher-than-anticipated share of losses from Red Lobster. 2023 net profit was pressured by non-cash impairment charges from Red Lobster. However, we expect earnings outlook to improve in 2024. Maintain BUY. Target price: Bt20.00.
KEY HIGHLIGHTS Results Pruksa Holding (PSH TB/SELL/Bt12.30/Target: Bt9.20) 4Q23: Disappointing results; core business pressured by low income. Thai Union Group (TU TB/BUY/Bt15.80/Target: Bt20.00) 4Q23: Lower-than-expected core earnings; better outlook for 2024.
GREATER CHINA Sector Commodities: Gold: Sticky US inflation dents rate cut expectations; economic anxiety and renminbi depreciation boosting domestic gold demand. INDONESIA Strategy Policy Matters – Raising Government Debt Level: Our top picks: Banking – BBNI, BBTN; property − BSDE, CTRA; technology – BUKA; consumer − MYOR, CMRY; retail – ACES; infrastructure – JSMR; mining – NCKL. MALAYSIA Results Dialog Group (DLG MK/BUY/RM1.86/Target: RM2.85): 1HFY24: Profits in line; narrowing EPCC losse...
GREATER CHINA Strategy Alpha Picks: February Conviction Calls: We remain hedged, adding COSCO Shipping Holdings and Foxconn Industrial Internet to our BUY list, but include additional SELL calls on Li Auto and Xpeng. INDONESIA Strategy Alpha Picks: Outperformance in Jan 24: Our picks are EXCL, MAPI, BMRI, JSMR, BBNI, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Eyes Also On Results Season Winners: Our Alpha Picks performance again trounced the KLCI in Jan 24 (+9.6% vs +4.0%). Feb 24 pic...
GREATER CHINA Strategy Alpha Picks: January Conviction Calls: We add the potential beneficiaries of the upcoming CNY festival − Galaxy Entertainment and Trip.com − to our BUY list, but include SELL calls on BYD and Geely due to the subsidy reduction. INDONESIA Strategy Alpha Picks: Underperformance in 4Q23 and 2023: Our picks are MAPI, BMRI, JSMR, TLKM, BBNI, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Domestic Event Winners: Our Alpha Picks outperformed the KLCI in Dec 23. Jan 24 pick...
GREATER CHINA Sector Property: CEWC not sending any new messages on property sector; lower target prices to reflect ASP pressure. INDONESIA Strategy Rupiah Appreciation Could Send JCI Rallying: Our top picks: banking − BBCA, BBNI; property − BSDE, CTRA; technology – BUKA; consumer − MYOR, CMRY; retail – ACES; infrastructure – JSMR; plantation − TAPG. MALAYSIA Sector Plantation: MPOB Nov 23: End-stock came in within our expectation. Peak inventory likely to be over but CPO pricing pressure is c...
TU is expected to report a higher qoq net profit supported by higher sales due to customers restocking inventory, efficient cost control, and lower Red Lobster losses. We still remain positive on TU’s 2024 outlook with expected further reduction in tuna prices and resumption of restocking by customers. Maintain BUY. Target price: Bt18.00.
GREATER CHINA Strategy Alpha Picks: December Conviction Calls: We add a mix of turnaround stocks and beneficiaries of policy support to our BUY list − CSPC, HKEX, Lenovo, Longfor, Pinduoduo and Sunny Optical. INDONESIA Strategy Alpha Picks: Underperformance With A 3.7% Return: Our picks are GOTO, BMRI, JSMR, TLKM, BBNI, NCKL, CTRA, MYOR and AKRA. MALAYSIA Strategy Alpha Picks: Still Focusing On Domestic Winners: Our Alpha Picks trounced the FBMKLCI in Nov 23, mostly thanks to Hume’s run-up. De...
TU reported a higher-than-expected 3Q23 core profit on the back of a better gross profit margin. We expect earnings to continue improving qoq in 4Q23. Although we expect 2023 earnings to decline 34.7% yoy, we expect it to increase 26.4% in 2024, driven by enhanced sales volume and improved gross margin resulting from lower tuna prices. Maintain BUY. Target price: Bt17.40.
KEY HIGHLIGHTS Results AP Thailand (AP TB/BUY/Bt11.10/Target: Bt13.50) 3Q23: Earnings up 20% yoy and 10% qoq, in line with expectations. Esso Thailand (ESSO TB/BUY/Bt9.55/Target: Bt15.00) 3Q23: Resilient quarter, results beat expectations. Thai Union Group (TU TB/BUY/Bt14.10/Target: Bt17.40) 3Q23: Higher-than-expected core earnings; organic growth to resume in 2024.
GREATER CHINA Economics Trade: Disappointing October exports likely a prelude to further weakness. Sector Property: Land markets remain weak, Shenzhen expresses firm support for Vanke. Update Prudential (2378 HK/BUY/HK$84.90/Target: HK$150.00): Strong NBP growth momentum sustained in 3Q23. INDONESIA Update Erajaya Swasembada (ERAA IJ/BUY/Rp344/Target: Rp440): Expect 9% yoy net profit growth in 2024 from improvement in stores’ productivity. Upgrade to BUY. MALAYSIA Results Fraser & Neave Holdin...
GREATER CHINA Strategy Alpha Picks: November Conviction Calls: We add a mix of defensives and turnaround stocks − COSCO Shipping, CR Mixc, Great Wall Motor, Innovent, Link REIT and NetEase − to our BUY list. INDONESIA Strategy Alpha Picks: Outperformance Despite Negative Returns: Our picks: TLKM, BBNI, SMGR, NCKL, CTRA, MYOR, AKRA and CMRY. MALAYSIA Strategy Alpha Picks: Focusing On Domestic Winners: Our Alpha Picks underperformed the FBMKLCI in Oct 23. Nov 23 picks: BUY BURSA, EKOVEST, GENM, ...
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.