GREATER CHINA Strategy Alpha Picks: July Conviction Calls Add CATL, KE Holdings, Longfor, Midea Group, Tencent and TME to our BUY list. Take profit on Prudential. Sector Online Games Upcoming new game releases to capitalise on the summer holiday season. INDONESIA Strategy Alpha Picks: Good Performances In June Our new alpha picks are ANTM, BBCA, ERAA, ICBP, MYOR, MIKA...
Our Alpha Picks portfolio managed to beat a bullish market, surpassing the STI in Jun 25. On an equal-weighted basis, we beat the STI’s 1.8% gain by 1.7ppt. For 2Q25, our Alpha Picks portfolio performed even better, up 5.0% qoq on an equal-weighted basis and beating the STI by 5.2ppt. For Jul 25, we add UMSH and CLAR while removing STM and CENT.
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 ...
With the MAS’ upcoming S$5b EQDP expected to boost mid-cap liquidity, we screened for stocks meeting a high liquidity threshold (ADTV >S$2m) and having solid fundamentals. Key stocks that screened well include CENT, CD, FR, IFAST, NETLINK, RFMD, RSTON, SSG, SIE, SPOST and UMS. Lowering the ADTV bar adds nine names with HLA and FEH being the most favoured in this group.
KEY HIGHLIGHTS Update ComfortDelGro Corporation (CD SP/BUY/S$1.41/Target: S$1.71) Increased taxi competition starting 2H25. Plans to raise overseas exposure. TRADERS' CORNER Hong Fok Corp (HFC SP): Trading BUY Medtecs International Corp (MED SP): Trading BUY
GREATER CHINA Sector Metals And Mining: Copper: Trade uncertainties cloud 2H25; decarbonisation anchors long-term bull case. INDONESIA Sector Banking: Banking liquidity: Measures underway. MALAYSIA Sector Plantation: Higher production and inventory build-up in May 25. Update QL Resources (QLG MK/HOLD/RM4.56/Target: RM4.80): Fairly insulated from trade tariff war but overall outlook is unexciting. Maintain HOLD. SINGAPORE Update ComfortDelGro Corporation (CD SP/BUY/S$1.41/Target: S$1.71): Incr...
With GrabCab’s impending entry into the domestic taxi street-hail segment, we expect the increased competition to have a slight negative impact on CD. CD recently announced that it would bid for an overseas rail contract in Melbourne which we estimate to be earnings accretive. With the recent weakness in share price, we reckon that CD is trading at attractive levels, underpinned by strong earnings growth and a decent 2025 dividend yield of 6%. We maintain BUY. Target price unchanged at S$1.71.
GREATER CHINA Strategy China Property & Hong Kong Property & Hong Kong Landlord Manageable pressure in mainland property market; improved tourism and retail sales momentum in Hong Kong. INDONESIA Strategy Alpha Picks: Good Performances in May Good performances from most with the exception of GOTO and BUKA. MALAYSIA Results CIMB Group (CIMB MK/HOLD/RM6.93/Target: RM7.70) 1Q25: Earnings in line, underpinned by lower provisions. Mai...
Driven by renewed positive investor sentiment, our Alpha Picks portfolio surpassed the STI in May 25, surging by 7.0% mom on an equal-weighted basis and beating the STI by 5.4ppt. On a market cap-weighted basis, our portfolio outperformed as well, up 1.9% mom and beating the STI by 0.3ppt. For Jun 25, we add CD, CSSC, FRKN, FEH and IFAST while removing SCI, MPM, OTEK and SIE.
KEY HIGHLIGHTS Strategy Alpha Picks: Beat the STI in May 25 A robust 5.4ppt beat by our Alpha Picks portfolio vs the STI in May 25. Add CD, CSSC, FRKN, FEH, IFAST and remove SCI, MPM, OTEK and SIE. TRADERS' CORNER Seatrium (STM SP): Trading SELL First Resources (FR SP): Trading SELL
Singapore’s market outlook has improved following the US backing down from its tariffs and the upcoming MAS liquidity support. The S$5b EQDP will boost non-index mid caps and in that vein, we like CENT, CSSC, CD, CSE, FEH, FRKN, HLA, OTEK, PROP, SSG, SIE and VALUE. In the meantime, the STI’s strong defensive nature and undervalued metrics support a revised 2025 target of 4,054. Our top large-cap picks are CLAS, CICT, FR, KEP, OCBC, SATS, SE, SCI, ST and YZJSGD.
GREATER CHINA Economics Money Supply: Credit demand weakens in April. Results Tencent Holdings (700 HK/BUY/HK$521.00/Target: HK$650.00): 1Q25: Strong results propelled by robust games and AI-powered ad-tech. INDONESIA Sector Telecommunications: 1Q25: EBITDA stable at -0.8% qoq. Maintain MARKET WEIGHT. MALAYSIA Results Sunway REIT (SREIT MK/BUY/RM1.93/Target: RM2.05): 1Q25: Results in line. Looking ahead, the full reopening of Sunway Carnival Mall Phase 2 and AEON Seri Manjung acquisition are e...
CD posted a mixed 1Q25 whereby revenue (+16.4% yoy) grew in line with expectations but PATMI was lower than expected (+18.8% yoy), dragged by higher amortisation costs. The public transport segment benefitted from higher domestic fares and ridership coupled with better UK margins. The taxi segment saw a strong inorganic boost from its acquisitions but continues to suffer from stiff competition. Given a decent 5.8% yield, we maintain BUY but with a lower target price of S$1.71.
KEY HIGHLIGHTS Results AEM Holdings (AEM SP/SELL/S$1.29/Target: S$1.09) 1Q25: Revenue in line with expectations but earnings remain weak. ComfortDelGro Corporation (CD SP/BUY/S$1.52/Target: S$1.71) 1Q25: Mixed results in line, expect stronger sequential growth. Genting Singapore (GENS SP/BUY/S$0.735/Target: S$0.90) 1Q25: Below expectations. Cut our earnings forecast given emerging headwinds. Maintain BUY with a lower target price of S$0.90 on cheap valuations and...
GREATER CHINA Economics Trade: A divergence between exports and imports. Strategy China And Hong Kong Property: Sales recovery weakened in Apr 25; watch for further policy support and the implications of Hong Kong’s free trade status. Results Zijin Mining (2899 HK/BUY/HK$17.22/Target: HK$24.00): 1Q25: In line; poised to capitalise on gold price surge with robust production growth. Update Kingboard Laminates Holdings (1888 HK/BUY/HK$7.69/Target: HK$9.58): Cautiously optimistic on 1H25; developing...
Despite escalating trade tensions and the US’ unprecedented tariffs, we do not expect any significant impact to CD’s earnings, given the defensive nature of its businesses. We also expect increased overseas contributions in 2025 from recent acquisitions, new bus contracts and ongoing contract renewals. In spite of the recent weakness in share price, we continue to like CD, underpinned by strong earnings growth and a decent 2025 dividend yield of 6.1%. We maintain BUY with the same target price o...
GREATER CHINA Strategy China And Hong Kong Property & Hong Kong Landlord Tariffs curtail US rate cuts, thereby hindering the recovery of Hong Kong property and tourism; Maintain OVERWEIGHT on China property. INDONESIA Strategy Alpha Picks: Outperform In Mar 25 Remove BBNI, BBRI, ASII, JSMR and KLBF; add BBCA, ICBP, ERAA and BUKA. MALAYSIA Update Pekat Group (PEKAT MK/BUY/RM1.08/Target: RM1.45) Good earnings visibility over 2025...
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