GREATER CHINA Sector Automobile Weekly: PV sales growth slows to 0.8% yoy. Maintain MARKET WEIGHT on the sector. Top BUYs: CATL, Geely and Tuopu. Update Sun Hung Kai & Co (86 HK/BUY/HK$3.47/Target: HK$5.86) 1H25 Preview: Positive market sentiment improves asset valuations. INDONESIA Small/Mid Cap Highlights Rukun Raharja (RAJA IJ/NOT RATED/Rp2,590) Building the future o...
KCE reported 4Q24 net profit of Bt282m (-41% yoy, +30% qoq). The results are below our and consensus expectations by 10% and 20%, pressured by lower revenue and squeezed gross margin. Revenue also came in below our estimate and was the lowest quarterly figure of the year. Due to the low base of KCE’s earnings in 2024, we expect to see better earnings in 2025. We also believe the valuation of KCE is cheap and attractive. Maintain BUY with a target price of Bt28.00.
KEY HIGHLIGHTS Results COM7 (COM7 TB/BUY/Bt21.60/Target: Bt29.00) 4Q24: Better-than-expected earnings. Upgrade to BUY. KCE Electronics (KCE TB/BUY/Bt20.60/Target: Bt28.00) 4Q24: Results below estimates. Update Major Cineplex (MAJOR TB/BUY/Bt13.10/Target: Bt16.00) Thai film industry is experiencing positive momentum. Thai Oil (TOP TB/HOLD/Bt25.25/Target: Bt27.00) CFP ...
GREATER CHINA Sector Property Channel checks and observations of Shenzhen and Shanghai primary markets. INDONESIA Strategy Danantara – Who Could Benefit Beneficiaries: PGEO, ANTM, TINS, BMRI, BBNI, BBRI and TLKM. We have an end-25 target of 7,500 for the JCI. MALAYSIA Results 99 Speed Mart Retail (99SMART MK/BUY/RM2.14/Target: RM2.60) 4Q24: Delivers on earnings...
KCE’s cloudy outlook is expected to persist into 4Q24, with softer revenue on a qoq basis due to weak demand from the auto sector impacting multilayer PCB, limited capacity of HDI, and ongoing machinery replacement that could still pressure sales in 4Q24. Due to the cloudy outlook of the auto industry and the downward revision of management’s guidance, we revise KCE’s 2024-25 earnings down by 5% and 10% respectively. Maintain HOLD with a lower target price of Bt28.00.
GREATER CHINA Results Xiaomi Corp (1810 HK/BUY/HK$28.80/Target: HK$33.50) 3Q24: Beat across the board; expect sustained growth across all key segments. Maintain BUY and raise target price to HK$33.50. INDONESIA Update Indo Tambangraya Megah (ITMG IJ/SELL/Rp26,850/Target: Rp25,100) Expect profit to decline by 12% yoy in 2025, fuelled by lower ASP. MALAYSIA Results CelcomDigi (CDB MK/BUY/RM3.37/Target: RM4.50) 9M24: In line; stock offers 5% yiel...
KCE reported a lacklustre 3Q24 net profit of Bt216m (-58% yoy, -66% qoq). The results are below our and consensus expectations by 60%, pressured by lower revenue, squeezed gross margin, and higher SG&A-to-sales. Due to the disappointing performance, we have revised down our 2024-25 earnings forecasts by 24% and 15% respectively, and also de-rated the valuation of KCE from mean PE to -1SD PE. Thus, we downgrade KCE to HOLD with a lower target price of Bt30.00.
KEY HIGHLIGHTS Results AP Thailand (AP TB/BUY/Bt8.60/Target: Bt11.30) 3Q24: Results meet expectations; strong backlog supports 4Q24 earnings. Bangkok Dusit Medical Services (BDMS TB/BUY/Bt26.50/Target: Bt33.00) 3Q24: Record-high earnings delivered. BTG TB (BTG TB/BUY/Bt20.10/Target: Bt24.20) 3Q24: Earnings in line. GFPT (GFPT TB/BUY/Bt10.80/Target: Bt13.00) 3Q24: Earnings in line; strong 4Q24 ea...
GREATER CHINA Small-mid Cap Highlight Modern Dental (3600 HK/NOT RATED/HK$3.68): Leading global provider of dental prosthetics devices. INDONESIA Update Indocement Tunggal Prakarsa (INTP IJ/BUY/Rp7,050/Target: Rp7,800): Expect earnings to recover 8.1% in 2025. Upgrade to BUY. MALAYSIA Results Hartalega Holdings (HART MK/BUY/RM3.32/Target: RM3.66): 2QFY25: Weak headline numbers due to forex losses, but operating matrixes chart strong growth. Maintain BUY with unchanged target price of RM3.66. H...
We expect 3Q24 combined core profit of the Thai electronic sector to improve 5% yoy due to higher revenue and better gross margin but drop 10% qoq from flat revenue and lower gross margin. Gross margin might not be strong in this quarter due to the impact of the baht appreciation. Looking ahead, we expect to see better core operation in 4Q24 and 2025. We maintain OVERWEIGHT on the sector with HANA and KCE as our top picks.
KCE’s 1H24 earnings were impressive. After attending its analyst meeting, we are now cautiously optimistic on its 2H24 outlook. However, we still expect earnings to improve 10% hoh due to stronger revenue and gross margin. Looking ahead to 2025, both revenue and gross margin should improve on better machine efficiency, which should increase the volume of HDI. We roll over valuation to 2025 and maintain BUY with a target price of Bt56.00.
KEY HIGHLIGHTS Strategy Uncertainties Arise as Court Removes PM from Office The court’s verdict raises concerns for the equities market and sector regarding policy continuity and economic stimulus, especially commerce. Results Central Plaza Hotel (CENTEL TB/SELL/Bt32.75/Target: Bt46.00) 2Q24: Weaker-than-expected results. CH Karnchang PCL (CK TB/BUY/Bt18.00/Target: Bt26.50) 2Q24: In line with expectations; expect volatility from polit...
KCE reported impressive 2Q24 net profit of Bt635m (+69% yoy, +23% qoq). The results are above our and consensus estimates by 13% due to a one-time sale of land and building worth about Bt145m in 2Q24. The company also reported an outstanding gross margin of 24.8% (+5.7ppt yoy, +1.7ppt qoq). We expect this positive gross margin to continue in 2H24 due to currency effect and efficiency enhancement. Maintain BUY with a target price of Bt54.00.
KEY HIGHLIGHTS Results Amata Corporation (AMATA TB/BUY/Bt23.50/Target: Bt30.00) 2Q24: Earnings below expectations; positive earnings outlook in 2H24. AP Thailand (AP TB/BUY/Bt7.85/Target: Bt11.30) 2Q24: Results within expectations; expect 3Q24 earnings to improve qoq. Bangkok Expressway and Metro (BEM TB/BUY/Bt7.75/Target: Bt11.60) 2Q24: Earnings in line. Banpu PCL (BANPU TB/HOLD/Bt4.60/Target: Bt5.00) ...
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...
INDONESIA Strategy Rally in 2H24 Likely Our top picks. Banking – BBCA, BBNI, BMRI, BBTN; property – BSDE, CTRA; technology – BUKA; consumer – CMRY; retail – ACES; infrastructure – JSMR. MALAYSIA Update Duopharma Biotech (DBB MK/BUY/RM1.25/Target: RM1.39) Public sector should anchor 2025 earnings as private sector sales outlook appears muted. Maintain BUY with a target price of RM1.39. Westports Holdings (WPRTS MK/HOLD...
GREATER CHINA Sector Automobile Weekly: PEV sales drop wow due to high comparison base. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL and Tuopu. Top SELLs: Li Auto and XPeng. Results Kuaishou (1024 HK/BUY/HK$58.15/Target: HK$85.00) 1Q24: Solid earnings beat; softer 2Q24; HK$16b share repurchase plan. Pinduoduo (PDD US/BUY/US$145.45/Target: US$200.00) 1Q24: Robust earnings beat; stro...
Moving into 2Q24, we project a qoq revenue increase driven by heightened demand for PCB and HDI products. Also, we foresee an improvement in gross margin due to cost savings. For 3Q-4Q24, we remain cautious on gross margin given the fluctuations in copper prices. We maintain our conservative assumption for 2024 gross margin, but we still expect earnings for the rest of the year to grow. Upgrade KCE from HOLD to BUY. Target price: Bt49.00.
KEY HIGHLIGHTS Results CH Karnchang (CK TB/BUY/Bt21.60/Target: Bt26.50) 1Q24: Better-than-expected results. Srisawad Corp (SAWAD TB/HOLD/Bt39.00/Target: Bt43.00) 1Q24: Results in line; credit cost improves qoq and NPL continues to increase. Update KCE Electronics (KCE TB/BUY/Bt40.50/Target: Bt49.00) Enhanced revenue prospects for the rest of the year; upgrade to BUY. The Erawan Group (ERW TB/BUY/Bt4.82/Target: Bt6.50) Strong core earnings in 1Q24; i...
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