reports
- Desmond Chong Chee Wai
- Malaysia Research Team
- Vincent Khoo Boo Aik
Strategy - Alpha Picks: Window Dressing Opportunity
Alpha Picks: Window Dressing Opportunity Our Alpha Picks outperformed the FBMKLCI in Nov 24 (+3.4% vs -1.9%). While the equity market continues to be sidelined, this time by fears of Donald Trump’s trade policies, there are still ample trading opportunities. Dec 24’s focus includes beneficiaries of Iskandar 2.0 newsflow (Eco World Development), M&A beneficiaries (Yinson Holdings), strong earnings momentum in 4Q24 (RGB), and window dressing opportunities (MISC). Dec 24 picks: Eco World Developmen...
- Kong Ho Meng
Velesto Energy (VEB MK) - 3Q24: Positive Surprise in Utilisation; Down...
3Q24: Positive Surprise in Utilisation; Downgrade 2025 Outlook VEB surprised positively in 3Q24 results, due to better-than-expected utilisation as a result of very efficient SPS being executed. However, 2025 rig outlook turned gloomy, with more operators deferring the future drilling programme to 2H25 at the earliest, consequently N3 and N5 will have long idle times in 1H25. Early terminations (like N8) are also happening due to mismatch in JU rig count vs demand. We retain our 5x EV/ EBITDA as...
- 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
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...
Velesto Energy Berhad: 1 director
A director at Velesto Energy Berhad bought 1,000,000 shares at 0.195MYR and the significance rating of the trade was 50/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two yea...
- Arsit Pamaranont
- Damon Shen
- Desmond Chong Chee Wai
- Heidi Mo Jinghui
- Jieqi Liu
- Julia Pan Mengyao
- Kong Ho Meng
- Llelleythan Tan Tan
- Ming San Soong
- Paula Ruth
- Tanaporn Visaruthaphong
- Tham Mun Hon
Regional Morning Meeting Notes: Tuesday, September 10, 2024
GREATER CHINA Economics Inflation Deflationary pressures rising. Sector Construction Building on the positive development of macroeconomic policies in 2H24-2025. Internet 2Q24 results wrap-up: Overall earnings beat; 2H24 outlook remains promising. INDONESIA Small...
3K1 KINGSOFT CORP. LTD.
002230 IFLYTEK CO. LTD. CLASS A
601668 CHINA STATE CONSTRUCTION ENGINEERING CORP. LTD. CLASS A
5243 VELESTO ENERGY
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
VSI V.S. INDUSTRY BERHAD
RATCH RATCH GROUP PUBLIC CO. LTD.
BRC BRC ASIA LTD
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TGIF 1933 INDUSTRIES
2013 WEIMOB INC
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
AVIA AVIA AVIAN TBK PT
02423 KE HOLDINGS INC.
EPIC 1CM INC
Z29 029 GROUP SE
09961 CTRIP.COM INTERNATIONAL
- Kong Ho Meng
Velesto Energy (VEB MK) - Embracing Uncertainties In Local Wells Requi...
Embracing Uncertainties In Local Wells Requirement VEB will have a weaker 2H24 in terms of utilisation, due to the three SPS for its rigs. VEB’s ability to replenish contracts, especially for N3, is commendable. However, we were correct that the risk of a potential Sarawak project rationalisation would have a material impact for N5. We upgrade our forecasts by 11-49% and retain our 5x EV/EBITDA assumption, but upgrade VEB to HOLD. Target price: RM0.25.
- Kong Ho Meng
Velesto Energy (VEB MK) - 1H24: Utilisation And Profits Peaked In 2Q24...
1H24: Utilisation And Profits Peaked In 2Q24; Retain HOLD 1H24 core performance inline with expectations : 2Q24 may be VEB’s strongest revenue days since 2014. Both core profits and core EBITDA generated in 1H24 at RM110m and RM289m respectively, and formed 67-68% of ours and consensus 2024F forecasts respectively. We still deem the performance in line, expecting 2H24 to be weaker vs the peak performance achieved in 2Q24. For 1H24, all rigs were fully utilized save for rig Naga 2 which had downt...
- 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
Velesto Energy (VEB MK) - Middle East-Driven Cycle Reverses Its Course
Middle East-Driven Cycle Reverses Its Course Saudi Aramco’s suspension of close to 22 JU rigs (6% of global fleet) had resulted in a cap in Asia JU rig rates, thereby completing the “mini-cycle” that started in 2022 when DCR spiked due to the Middle East rig acquisition spree. Locally, there may be a rationalisation of Sarawak projects. We see negligible risk to VEB’s 2024 earnings, and for 2025/26, the risks are manageable. However, sentiment has been priced in. We retain our forecasts. Maintai...
- Desmond Chong Chee Wai
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kampon Akaravarinchai
- Kong Ho Meng
- Limartha Adhiputra
- Ming San Soong
Regional Morning Meeting Notes: Friday, July 5, 2024
GREATER CHINA Initiate Coverage BYD Electronic (285 HK/BUY/HK$37.35/Target: HK$47.70) Robust multi-year growth cycle driven by content gains and GenAI themes. Update Pinduoduo (PDD US/BUY/US$133.88/Target: US$200.00) Fostering overseas expansion to mitigate regulatory uncertainties. INDONESIA Update Jasa Marga (JSMR IJ/BUY/Rp5,250/Target: Rp7,300) Progress in JTT equity financing. MALAYSIA Sector Technology ...
JSMR PT JASA MARGA (PERSERO) TBK CLASS B
00285 BYD ELECTRONIC (INTERNATIONAL) CO. LTD.
N2IU MAPLETREE COMMERCIAL TRUST
AJBU KEPPEL DC REIT
TU THAI UNION GROUP PUBLIC COMPANY LIMITED
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
Q5T FAR EAST HOSPITALITY TRUST
5243 VELESTO ENERGY
PDD PINDUODUO INC. SPONSORED ADR CLASS A
CDREIT CDL HOSPITALITY TRUSTS
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
VSI V.S. INDUSTRY BERHAD
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
SASSR SASSEUR REAL ESTATE INVESTMENT TRUST
SKP SKP RESOURCES BHD
MUST MANULIFE US REAL ESTATE INV
TXG 10X GENOMICS INC CLASS A
UHU UNITED HAMPSHIRE US REIT
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
570499Z ADITYA BIRLA SUN LIFE AMC
CLAR CAPITALAND ASCENDAS REIT
NATGATE NATIONGATE HOLDINGS BHD
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
CEB CAPE EMS BERHAD
Z29 029 GROUP SE
- 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
Velesto Energy (VEB MK) - 1Q24: Delivering Results; Potentially More B...
1Q24: Delivering Results; Potentially More Business Diversification To Justify Rerating 1Q24 core profit inline and met 23% of our 2023F expectations, while EBITDA (the financial metrics VEB’s valuation is based on) met 31% of our full year forecast. The strong 1Q24 showing was due to higher average daily charter rates at US$107,000 (4Q23: US$99,000; 1Q23: US$87,000), and rig utilisation which climbed to 94%. While drilling revenue grew, opex continued to rise alongside depreciation.
- 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.
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.