Greater China Sector Update | Internet The growing robotaxi ecosystem is drawing in an increasing number of new entrants, including autonomous service providers and ride-hailing platforms. We expect technological maturity, policy support, and better fleet economics to drive a major expansion wave for the robotaxi industry into 2H25/2026, with China’s robotaxi fleet size expected to grow ten-fold during this period. We see material development and monetisation progress of Robotaxi, sparking r...
The sudden U-turn in trade negotiations between the US and China has caught the market by surprise. Risk from a protracted US government shutdown also adds to greater uncertainties. The most defensive sectors are suburban retail (CICT and LREIT), healthcare (PREIT) and data centres (KDCREIT and NTTDCR), which are less affected by trade conflicts and reciprocal tariffs. Maintain OVERWEIGHT. BUY CICT (Target: S$2.79), KDCREIT (Target: S$2.69), PREIT (Target: S$5.34), LREIT (Target: S$0.79) and NTT...
Greater China Strategy | Alpha Picks: October Conviction Calls The HSI and MSCI China gained 7.1%/8.2% mom in September on Fed easing and optimism over advancements in semiconductors and AI. We remain positive in the medium term but expect near-term consolidation after the recent strong gains. The best performer of the month was Alibaba (+53.0% mom). With some rotations expected in non-tech stocks, our October calls are: add Galaxy, Jacobson, Ping An, Trip.com and WuXi Bio to BUY; SELL Meituan. ...
Top Stories Sector Update | REITs US monetary policy is at an inflexion point and has switched towards easing to support the job market, which has slowed considerably in recent months. S-REITs benefit from lower cost of debt and expanded yield spread. Maintain OVERWEIGHT. BUY blue chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.69), KREIT (Target: S$1.18) and LREIT (Target: S$0.79). Market Spotlight US stocks ended higher on Tuesday, ...
Top Stories Sector Update | REITs The iEdge Singapore Next 50 Index tracks the next 50 largest companies listed on the SGX Mainboard that fall just outside the top 30 STI constituents. S-REITs account for 15 out of the 50 constituent stocks of the Next 50 Index, and carry a total weightage of 42.6% in aggregate. BUY constituents of the Next 50 Index: CLAS (Target: S$1.56), KREIT (Target: S$1.18), PREIT (Target: S$5.34), LREIT (Target: S$0.79) and FEHT (Target: S$0.81). Market Spotlight US sto...
Greater China Initiation Coverage | Metasurface Technologies Holdings (8637 HK/BUY/HK1.48/Target: HK2.90) Metasurface is set to benefit from robust investment in the semi supply chain. As chip fabrication grows in complexity, more time is required to fabricate wafers and more wafer fabrication equipment is needed. Aerospace engineering is set to drive long-term growth as airline capacity continues to face shortages, forcing airlines to rely on their existing fleets and bo...
Attractive yield differentials. With Singapore government bond yields trending lower, the yield differential between fixed income and equities has narrowed in 2025, thus reinforcing the relative appeal of companies offering high, sustainable dividend payouts. Equity yields in the 4-6% range now offer a compelling pickup versus the 10-year Singapore Government Bond yield (1.8579% as at 4 Sep 25), while also providing potential for capital gains. In our view, this widening yield gap should support...
GREATER CHINA Strategy Alpha Picks: September Conviction Calls: Add Anta, BYDE and CSCEC to our BUY list, Li Auto and OOIL to our SELL list. Take profit on Innovent, JD Logistics, Lenovo, Sino Biopharm, Tencent and TME. INDONESIA Strategy Alpha Picks: Underperformance In August: Our new Alpha Picks are ASSA, ARCI, BBCA, BBNI, BRMS, MTEL, HRUM and NCKL. MALAYSIA Strategy Alpha Picks: Wake Me Up When September Ends: Our Aug 25 Alpha Picks underperformed marginally. Sep 25 picks: Alpha IVF, Hume ...
US monetary policy is at an inflexion point, and is likely to switch towards easing to support the job market, which has slowed considerably recently. S-REITs benefit from the recovery in liquidity triggered by the upcoming rate cuts. Maintain OVERWEIGHT. BUY blue chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.69), KREIT (Target: S$1.18) and LREIT (Target: S$0.79).
GREATER CHINA Results China Mengniu Dairy (2319 HK/BUY/HK$15.84/Target: HK$21.70) 1H25: Revenue slightly misses but operating profit beats; expect mid-to-high single-digit revenue decline for 2025. China Resources Gas (1193 HK/BUY/HK$19.05/Target: HK$22.60) 1H25: In line; from earnings drag to guidance-driven re-rating; upgrade to BUY. ECARX Holdings Inc (ECX US/BUY/US$1.60/Target: US$3.40) 2Q25: Net loss widens; recovery expected in 2H25. Maintain...
The data centre industry is gravitating towards building of hyperscale and even gigawatts data centres. Smaller data centres, particularly those serving enterprise tenants, could become irrelevant. Maintain OVERWEIGHT. BUY KDCREIT (Target: S$2.69) and DCREIT (Target: US$0.88) as hyperscale tenants accounted for sizeable 67% and 75% of rental income respectively. Downgrade MINT to HOLD (Target: S$2.30) as its enterprise tenants are susceptible to non-renewal.
GREATER CHINA Results China Overseas Property Holdings (2669 HK/BUY/HK$5.85 /Target: HK$7.00) 1H25: Results a mixed bag; quality growth with slower expansion pace; special dividend for 10th listing anniversary. Goldwind Science & Technology (2208 HK/BUY/HK$9.52/Target: HK$10.80) 1H25: In line; solid backlog, stabilised pricing, and margin recovery ahead. Han’s Laser (002008 CH/BUY/Rmb35.70/Target: Rmb39.50) 2Q25: Solid growth in operating income. PCB/IT equip...
Two S-REITs out of 21 under our coverage beat expectations, namely CICT (NPI margin expanded due to efficiency and scale from focus on Singapore) and PREIT (11 nursing homes in France contributed fully and accounted for 7.8% of group NPI). Maintain OVERWEIGHT. US monetary policy is switching towards easing. BUY blue chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.69), KREIT (Target: S$1.18) and LREIT (Target: S$0.79).
Singapore’s 1H25 results season was resilient, with 75% of companies meeting or beating expectations despite tariff uncertainty and strength of the Singapore dollar. Banks delivered stable earnings and attractive yields, underpinning the STI. Consumer names like DFI and SSG stood out, while REITs showed positive rental reversions. Capital recycling drove upgrades for CIT and VMS. We raise our end-25 STI target to 4,602, reflecting 8% upside and attractive valuations versus history and peers.
The Jackson Hole Symposium highlights US monetary policy at an inflexion point, potentially switching towards easing to support the job market, which has slowed considerably for three consecutive months in May, June and July. Maintain OVERWEIGHT. S-REITs benefit from recovery in liquidity triggered by upcoming rate cuts. BUY blue chip S-REITs: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.69), KREIT (Target: S$1.18) and LREIT (Target: S$0.79).
GREATER CHINA Results CSPC Pharmaceutical Group (1093 HK/BUY/HK$10.51/Target: HK$12.00) 1H25: Results miss; expects hoh sales recovery and two more BD deals in 2H25. Ganfeng Lithium (1772 HK/BUY/HK$30.80/Target: HK$40.00) 2Q25: Net loss in line; 3Q25 turnaround on the back of lithium carbonate price recovery. Maintain BUY, target price: HK$40.00. Li Ning (2331 HK/HOLD/HK$19.70/Target: HK$18.90) 1H25: Results beat but challenges remain in 2H25; fa...
Strategy Results Roundup 1H25 results roundup: A resilient earnings season with banks carrying the load, REITs upping rents. Raising STI target to 4,602. Sector REITs Jackson Symposium provides turnaround momentum. TRADERS' CORNER Singapore Telecommunications (ST SP): Trading BUY First Resourc...
GREATER CHINA Strategy Alpha Picks: August Conviction Calls: Add JBM Healthcare and Lenovo to our BUY list. Take profit on CATL, Han’s Laser, KE Holdings and Longfor. INDONESIA Strategy Alpha Picks: Underperformance In July: Our new Alpha Picks are ASSA, AKRA, ARCI, BBNI, KLBF, MTEL, and MYOR. MALAYSIA Strategy Alpha Picks: Some Opportunities Amid A “Summer Lull”: Our July 25 Alpha Picks outperformed. Aug 25 picks: Coraza, Eco World, Gamuda, Hume Cement, IJM, Inari, RHB and Zetrix. SINGAPORE ...
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