GREATER CHINA Strategy Alpha Picks: September Conviction Calls: We expect an improving operating performance among selected companies in September, and add AIA, COLI, Desay SV, Galaxy Entertainment, Meituan, Ping An and TUL to our BUY list and add Li Auto as a SELL. INDONESIA Strategy Alpha Picks: Trailing The JCI’s Strong Performance In Aug 24: Our picks are ICBP, TOWR, BBNI, BMRI, BBRI, EXCL, CTRA, BBTN, CMRY, SIDO and JSMR. MALAYSIA Strategy Alpha Picks: Adapting To A Bipolar Market: Our Al...
After Powell’s Jackson Hole speech on 23 August, we see a turning point starting with a US Fed rate cut in Sep 24 and lower rates heading into 2025. In the Singapore market, REITs and the property sector should benefit, as should highly-geared companies and those looking to recycle capital. Our current forecasts have incorporated lower NIMs for banks which we believe are protected by their high dividend yields.
What’s new: SE’s reported 2Q24 results that were above consensus and our expectations. Shopee will reach adjusted EBITDA positive in 3Q24 and Shopee GMV growth could reach mid-20% in FY24. Garena could also reach double digit user and bookings growth in FY24 despite weaker seasonality in 2H. We up our PT from USD75 to USD85 on improving outlook. Our revised PT of USD85 implies 2.5x FY25E EV/Rev. We maintain our BUY rating. Analysts: Jin Yoon
KEY HIGHLIGHTS Results CapitaLand Integrated Commercial Trust (CICT SP/BUY/S$2.10/Target: S$2.29): 1H24: Stable occupancies; smooth execution for AEIs. SEA (SE US/BUY/US$74.85/Target: US$88.21): 2Q24: Strong quarter, improving outlook and better profit profile. UMS Holdings (UMSH SP/SELL/S$1.07/Target:S$0.90): 2Q24: Earnings below expectations due to forex; slow ramp-up of new customer. Wilmar International (WIL SP/HOLD/S$3.01/Target: S$3.25): 1H24: Results in line with expectations. Higher ...
GREATER CHINA Economics Money Supply Weak demand for transactional funds and medium- to long-term loans. Results Foxconn Industrial Internet (601138 CH/BUY/Rmb20.78/Target: Rmb30.00) 2Q24: Solid progress in AI business; margin misses due to product mix changes. Sino Biopharmaceutical (1177 HK/BUY/HK$2.95/Target: HK$4.00) 1H24: Results beat; expects double-digit revenue and earnings growth in 2024. INDONESIA Update In...
SEA’s 2Q24 results are in line with our expectations as all business segments saw better sequential earnings. This was on the back of: a) better profitability from non- Asian markets and higher take-rates for the e-commerce segment, b) strong growth momentum from the DFS segment, and c) increased bookings from a highly engaged user base for the group’s Free Fire game. Given the group’s improving outlook, we maintain BUY with a higher target price of US$88.21.
GREATER CHINA Strategy Alpha Picks: August Conviction Calls: We expect stimulus to be announced in August and add COSCO Shipping Ports, Haier Smart Home, and KE Holdings to our BUY list and add SELL call on WuXi Bio, and XPeng. INDONESIA Strategy Alpha Picks: Underperformance in Jul 24: Our picks are BBNI, BMRI, BBRI, EXCL, CTRA, BBTN, CMRY, SIDO and JSMR. MALAYSIA Strategy Alpha Picks: Raising The M&A And Monetisation Bets: Our Alpha Picks marginally beat the KLCI. Jul 24 picks: Ekovest, Gamu...
GREATER CHINA Strategy Alpha Picks: July Conviction Call: Adding ASMPT, Innovent, Poly Property Services, TAL Education and Trip.com to our BUY list; hedging with SELL call on BYD. INDONESIA Strategy Alpha Picks: Outperformance In Jun 24 And 2Q24: Our picks are BMRI, BBRI, EXCL, BSDE, TLKM, ACES, BBTN, CMRY, SIDO and JSMR. MALAYSIA Strategy Alpha Picks: Opting For More Adventurous Choices: Our Alpha Picks beat the KLCI again. Jul 24 picks: BURSA, Ekovest, Gamuda, Lagenda, Mah Sing, MYEG, Pekat...
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