reports
- Kong Ho Meng
Velesto Energy (VEB MK) - 1H25: Stable Dividend Expected To Support Cu...
1H25: Stable Dividend Expected To Support Current Price 1H25 EBITDA is within expectations, given potentially weaker 2H25 DCR. However, profits and DPS beat expectations. Clearer prospects from regional opportunities (alongside multi-year contract tenures) further strengthen VEB’s ability to maintain over 75% utilisation. VEB’s commendable financial discipline shows it can afford a dividend payout of over 100% (and exceed 2024’s DPS) under our new stress test forecast, if DCR remains above US$90...
- Adrian Loh Tzum Yung
- Alden Gabriel Lam
- Benyamin Mikael
- Colin Lee
- Ejann Hiew
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Keith Wee Teck Keong
- Kenny Yong Hui Lim
- Kong Ho Meng
- Tanaporn Visaruthaphong
- Thanawat Thangchadakorn
Regional Morning Meeting Notes: Thursday, July 24, 2025
Results ASMPT (522 HK/BUY/HK$63.20/Target: HK$92.40): 2Q25: Results largely in line. Solid bookings beat as mainstream tools recover; AP tools progressing well in logic and at HBM clients. Update Prudential (2378 HK/BUY/HK$98.10/Target: HK$128.00): 1H25 results preview: Expecting solid NBP growth and focusing on capital management. INDONESIA Small/Mid Cap Highlights Medco Energi Internasional (MEDC IJ/NOT RATED/Rp1,260): Disciplined strategy and portfolio diversification. MALAYSIA Update CIMB ...
PRU PRUDENTIAL PLC
ASM PACIFIC TECHNOLOGY LIMITED
1023 CIMB GROUP HOLDINGS BHD
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
MEDC PT MEDCO ENERGI INTERNASIONAL TBK
5243 VELESTO ENERGY
D01 DAIRY FARM INTERNATIONAL HOLDINGS LIMITED
WHA TB WHA CORP PCL
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
8AZ AZTECH GLOBAL LTD
- Kong Ho Meng
Velesto Energy (VEB MK) - Heading Into New Territory As A Leading ASEA...
Heading Into New Territory As A Leading ASEAN Rig Player We concluded that VEB will be able to maintain reasonably high utilization >75%, despite softer rig market conditions vs 2022-24 and the disruption of local offshore activities. Therefore, it also lends higher confidence to sustain dividends at 2024 levels (7% yield). Although not a deliberate strategy, VEB was able to mitigate the “local geopolitical risk” by benefiting from ASEAN opportunities, especially rig demand in Indonesia, Vietnam...
- 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
Velesto Energy (VEB MK) - 1Q25: Commendable Start At Peak DCR; Upside ...
1Q25: Commendable Start At Peak DCR; Upside Depends On Diversification VEB’s 1Q25 profit and EBITDA appeared to comprise >25% of our/consensus forecasts but are within expectations as 1Q25 is expected to be a strong showing relative to the rest of 2025. Utilisation for 2Q25 may weaken temporarily, while the average realised rig rates will fall in 2H25. VEB’s ability to diversify outside of Petronas (by breaking into Vietnam and Indonesia) will be crucial for our scenario of 75% utilisation rate....
- 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
Velesto Energy (VEB MK) - Behold, The Dragon With Robotic Arms
Behold, The Dragon With Robotic Arms Although 1Q25 was a bad quarter for global JU rigs in terms of utilisation, we understand that the metrics have stabilised recently, thus supporting a buoyant market with a utilisation rate of >80%. Recognising that this is the time to expand and despite operating in a tough market environment, VEB aims to have regional presence, and continues to adapt to market needs, including embracing automation and robotic arms. Retain BUY. Target price: RM0.22. Its curr...
- Arsit Pamaranont
- Benjaphol Suthwanish
- Benyamin Mikael
- Chong Lee Len
- Claire Wang Kelai
- Colin Lee
- Ejann Hiew
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Kampon Akaravarinchai
- Kenny Yong Hui Lim
- Kong Ho Meng
- Lester Siew
- Shirley Wang Xueyi
- Stella Guo Yuting
- Ziv Ang Sze Champ
Regional Morning Notes - Wednesday, April 30, 2025
GREATER CHINA Results China Construction Bank (939 HK/HOLD/HK$6.79/Target: HK$7.00): 1Q25: Earnings miss due to weaker NIM and fee income; tariff risk is limited. Downgrade to HOLD. China Longyuan Power (916 HK/HOLD/HK$6.10/Target: HK$6.60): 1Q25: In line; cautious outlook amid rising curtailment rates and upcoming policy shift. China Merchants Bank (3968 HK/BUY/HK$44.50/Target: HK$49.00): 1Q25: Earnings down 2.1% yoy on weaker trading gains. Estun Automation (002747 CH/SELL/Rmb19.17/Target: Rmb...
BCP THE BANGCHAK PETROLEUM PCL
FCT FRASERS CENTREPOINT TRUST
BRPT PT BARITO PACIFIC TBK
F34 WILMAR INTERNATIONAL LIMITED
ESSO ESSO (THAILAND)
6WX CHINA LONGYUAN POWER GROUP CORP. LTD. CLASS H
600519 KWEICHOW MOUTAI CO. LTD. CLASS A
601939 CHINA CONSTRUCTION BANK CORPORATION CLASS A
300124 SHENZHEN INOVANCE TECHNOLOGY CO. LTD CLASS A
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
5243 VELESTO ENERGY
M4B CHINA MERCHANTS BANK CO. LTD. CLASS H
333 MIDEA GROUP
2747 ESTUN AUTOMATION
MPM MARCO POLO MARINE LTD
SCGP SCG PACKAGING PCL
- Kong Ho Meng
Velesto Energy (VEB MK) - 2024: EBITDA At All-time High; 2025 Risks Fu...
2024: EBITDA At All-time High; 2025 Risks Fully Priced In VEB’s 2024 financials are a testimony of its execution track record (and achieving alltime high EBITDA), ability to pare down debt (with zero long-term borrowings now), and the adaptability to capture new markets amid uncertainties in the home ground. We upgrade earnings by 2-4x. Taking these into account, our previous forecasts may help paint a floor (current price implies 65% utilisation), and we advise investors to trade within a range...
- 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 ...
- 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...
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