Top Stories Economics | Inflation December CPI inflation rose to 0.8% yoy (+0.1ppt mom), the strongest reading ytd, with a sharp rebound in food prices. Core CPI remained at 1.2% yoy, the highest level for 2025, with goods inflation strengthening further while services inflation continued to ease slightly. PPI deflation moderated to 1.9% yoy (+0.3ppt mom), supported by improvements in mining and consumer goods pricing. Overall, the data suggests tentative price stabilisation, although deflation...
Strategy | Potential LNG Infrastructure Investment Boom Indonesia is structurally shifting from pipeline gas to LNG due to declining legacy gas fields in Java and Sumatra and limited pipeline infrastructure. This shift is reinforced by power-sector decarbonisation and PLN’s capacity expansion, driving multi-year LNG demand and infrastructure investment. LNG-related stocks have rallied about 113% over the past three months. GTS Internasional (GTSI, Not Rated) remains the only pure-play LNG logist...
Economics | The 2025 Budget Realisation: A Deficit Beyond Targets, Stability Amid Spending The 2025 deficit widened to 2.92% of GDP, driven by a tax shortfall, though strong non-tax revenue provided an offset. Spending underperformed overall but showed a clear priority for social and capital projects. Markets remained stable due to the central bank’s intervention. For 2026, while the government targets a 2.7% of GDP deficit, we forecast a more realistic 2.8-3.0% gap. Financing will remain substa...
Greater China Economics | Inflation December CPI inflation rose to 0.8% yoy (+0.1ppt mom), the strongest reading ytd, with a sharp rebound in food prices. Core CPI remained at 1.2% yoy, the highest level for 2025, with goods inflation strengthening further while services inflation continued to ease slightly. PPI deflation moderated to 1.9% yoy (+0.3ppt mom), supported by improvements in mining and consumer goods pricing. Overall, the data suggests tentative price stabilisation, although defl...
Reclaims is one of Singapore’s top three earthworks and excavation players, providing essential early-stage construction services that underpin low default risk. We expect sustained demand driven by a construction upcycle in Singapore. Despite superior ROE and yield, Reclaims currently trades at around a 20% discount to peers. Initiate coverage with BUY and a target price of S$0.56.
Economics | The 2025 Budget Realisation: A Deficit Beyond Targets, Stability Amid Spending The 2025 deficit widened to 2.92% of GDP, driven by a tax shortfall, though strong non-tax revenue provided an offset. Spending underperformed overall but showed a clear priority for social and capital projects. Markets remained stable due to the central bank’s intervention. For 2026, while the government targets a 2.7% of GDP deficit, we forecast a more realistic 2.8-3.0% gap. Financing will remain substa...
Highlights • Reclaims Global (Reclaims) is one of Singapore’s top three players in earthworks and excavation. It plays a critical role in the early stage of construction projects, making its default risk extremely low. • Continued strong demand for earthworks, demolition, and excavation services, supported by a construction industry upcycle in Singapore. • Reclaims has no research coverage and trades at >30% discount vs peers despite higher ROE and yield. Initiate coverage with BUY and a target ...
Company Update | AP (Thailand) (AP TB/BUY/Bt8.90/Target: Bt10.10) 4Q25 presales are expected to improve yoy, driven by aggressive launches. However, on a qoq basis, presales are anticipated to decline slightly due to the long holidays and exceptionally high base in 3Q25. 4Q25 earnings are projected to reach its peak for the year, underpinned by backlogs and the newly-completed condominium. AP is expected to maintain a proactive launch strategy in 2026, focusing on portfolio expansion with risk...
Company Update | Aeon Thana Sinsap (Thailand) (AEONTS TB/SELL/Bt102.50/Target: Bt92.00) We came away from AEONTS’s analyst meeting with a negative view. We are concerned about the company’s direction toward expanding hire-purchase loans, especially in motorcycles. We are concerned about credit costs, the asset quality outlook, and the possibility of repeating a vicious cycle similar to that experienced by its peers in the past. Downgrade to SELL with a lower target price of Bt92.00 (from Bt110...
We trim China’s 2026 PV sales growth to 3% yoy, based on a 2% yoy drop in domestic sales and 20% export growth, as the bigger-than-expected stimulus rollback weighs on demand. Based on lower 2026 sales, we cut 2026 net profit forecasts for OEMs by 3-10%, and cut target prices for Geely, BYD, GWM, XPeng and Li Auto to HK$36.00/HK$81.00/HK$18.50/HK$145.00/HK$50.00 respectively. Maintain MARKET WEIGHT. Top BUYs: CATL, Ganfeng Lithium, Minth and Geely. Top SELL: Li Auto.
Sector Update | Retail Dec 25 SSSG remained negative, pressured by negative events and weak consumer spending. However, home improvement retail appeared to improve in Dec 25, benefitting from post-flood demand in the south. A short-term SSSG recovery is likely in 2Q26, supported by a low base in 2Q25, particularly within the home improvement segment. Maintain MARKET WEIGHT. Top pick is GLOBAL as it has resilient SSSG momentum in 1Q26, thanks to a very low base in 1Q25.
Top Stories Sector Update | Retail Dec 25 SSSG remained negative, pressured by negative events and weak consumer spending. However, home improvement retail appeared to improve in Dec 25, benefitting from post-flood demand in the south. A short-term SSSG recovery is likely in 2Q26, supported by a low base in 2Q25, particularly within the home improvement segment. Maintain MARKET WEIGHT. Top pick is GLOBAL as it has resilient SSSG momentum in 1Q26, thanks to a very low base in 1Q25. Company Upd...
2026: Look Beyond Congestion For Long-term Positioning Highlights Achieved commendable 2025 volume growth (+3.4%) despite losing market share. Port statistics showed Westports Holdings (WPRTS) lost market share to other renowned SOM ports such as PTP (2025 growth: 14%) and PSA (11M25 growth: 8%). An unexpected surge in port congestion towards Dec 25 may extend this competitive disparity, during which WPRTS executed countermeasures by deploying maximum resources (in other words, effective capac...
Top Stories Company Update | Westports Holdings (WPRTS MK /HOLD/RM5.66/Target: RM5.55) WPRTS achieved commendable 2025 volume growth (+3.4%) despite losing market share. An unexpected surge in port congestion towards Dec 25 forced WPRTS to deploy maximum resources. The congestion may boost VAS revenues, but opex could also surge. We continue to believe that WPRTS will only become more relevant. Risk-reward remains fair, hence we maintain HOLD and RM5.55 target price. Market Spotlight The FBMKL...
Top Stories Sector Update | Automobile We trim China’s 2026 PV sales growth to 3% yoy, based on a 2% yoy drop in domestic sales and 20% export growth, as the bigger-than-expected stimulus rollback weighs on demand. Based on lower 2026 sales, we cut 2026 net profit forecasts for OEMs by 3-10%, and cut target prices for Geely, BYD, GWM, XPeng and Li Auto to HK$36.00/HK$81.00/HK$18.50/HK$145.00/HK$50.00 respectively. Maintain MARKET WEIGHT. Top BUYs: CATL, Ganfeng Lithium, Minth and Geely. Top SEL...
Top Stories Initiate Coverage | NTT DC REIT (NTTDCR SP/BUY/US$1.01/US$1.42) NTTDCR is planning a potential acquisition of a hyperscale data centre in Frankfurt, Germany with NPI yield of 6% and WALE of 10 years in 1H26. Portfolio occupancy could improve as much as 2.5ppt to 97.7% in 2HFY26 due to scheduled ramp-up by existing tenants and addition of new tenants. NTTDCR’s largest tenant is a Fortune 100 US EV company. Its recent launch of autonomous humanoid robots could create more demand. Initi...
Company Update | Darma Henwa (DEWA IJ/BUY/Rp800/Target: Rp1,500) DEWA is entering a structural earnings upcycle driven by full in-house fleet utilisation, sharply higher operating capacity, and tighter cost control. Funding has been secured to support expansion, while balance sheet optimisation could unlock dividends. With execution risk materially reduced and copper upside unpriced, we see scope for a valuation re-rating and maintain BUY with a DCF-based target price of Rp1,500. Highlights • O...
Company Update | Darma Henwa (DEWA IJ/BUY/Rp800/Target: Rp1,500) DEWA is entering a structural earnings upcycle driven by full in-house fleet utilisation, sharply higher operating capacity, and tighter cost control. Funding has been secured to support expansion, while balance sheet optimisation could unlock dividends. With execution risk materially reduced and copper upside unpriced, we see scope for a valuation re-rating and maintain BUY with a DCF-based target price of Rp1,500. Technical Anal...
Indonesia Company Update | Darma Henwa (DEWA IJ/BUY/Rp800/Target: Rp1,500) DEWA is entering a structural earnings upcycle driven by full in-house fleet utilisation, sharply higher operating capacity, and tighter cost control. Funding is secured to support expansion, while balance sheet optimisation could unlock dividends. With execution risk materially reduced and copper upside unpriced, we see scope for a valuation re-rating and maintain BUY with a DCF-based target price of Rp1,500. Malay...
NTTDCR is planning a potential acquisition of a hyperscale data centre in Frankfurt, Germany with NPI yield of 6% and WALE of 10 years in 1H26. Portfolio occupancy could improve as much as 2.5ppt to 97.7% in 2HFY26 due to scheduled ramp-up by existing tenants and addition of new tenants. NTTDCR’s largest tenant is a Fortune 100 US EV company. Its recent launch of autonomous humanoid robots could create more demand. Initiate coverage with BUY and target price of US$1.42.
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