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CGS CIMB |
CGS CIMB |
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Malayan Banking Bhd Identifying the growth drivers
■ Maybank has identified wealth management, global market FX sales and mid-market segment as its super growth areas. ■ We forecast a 3-year net profit CAGR of 6.1% over FY24-27F, underpinned by 6.8% CAGR in net interest income. ■ Reiterate Add, as we expect potential write-backs of management overlay and capital management initiatives to enhance its dividend yields and ROE.
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Singapore Exchange Defensive play benefitting from volatility
■ We estimate SGX to report 2HFY6/25F core PATMI of S$321.6m (+17% yoy/+1% hoh) on strong trading volumes and demand for OTC FX products. ■ The deployment of capital from MAS’s S$5bn EQDP could also generate a virtuous cycle to stimulate trading volumes on SGX in FY26F-27F. ■ Upgrade to Add with a higher TP of S$18.00, after rolling forward our valuation to CY26F, now based on 28x P/E (2 s.d. above 15-year mean). ■ We expect SGX’s valuations to continue re-rating as we view the stock as a defensive pick, with earnings CAGR of 5.9% for FY25-27F.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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StarHub (STH SP) InvestASEAN: Key takeaways from management meeting
Consumer competition will take a while to subside We hosted StarHub CFO Mr. Jacky Lo and the IR team at our InvestASEAN conference in Kuala Lumpur. Management reiterated that Singapore’s mobile and fixed broadband markets remain intensely competitive, driven by 4 MNOs and 7 MVNOs. Despite this, StarHub is gaining subscriber share across all three market segments—premium (StarHub), digital (Giga), and value (Eight)—with its share gap vs. M1 widening to 6ppt. Management sees continued pressure from consumer downtrading (premium to value), a trend likely to persist through 2027–28. StarHub is open to industry consolidation, but it says there is no timeline or details. StarHub has likely already taken delivery of the 700MHz spectrum and more updates are expected during the upcoming results announcement (in early Aug’25).
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ASEAN Data Centre Impact on MY/TH from US curbs on AI chip exports
Uncertainty for Malaysian and Thai data centre hubs According to Bloomberg, the Trump administration is drafting a rule to restrict export of advanced AI chips to Malaysia and Thailand, aiming to enhance oversight of where US chips end up specifically China. This move would formally replace the Biden-era AI diffusion rule, while maintaining existing chip restrictions on China and 40+ other jurisdictions. Although the rule is not yet final, it marks the first step in Trump’s broader overhaul of AI-related export controls. Chinese companies rent servers in Southeast Asian data centres (DCs) to indirectly access Nvidia’s advanced AI chips, a likely reason for the proposed curbs by Trump, as per Bloomberg article. The proposal introduces uncertainty for Malaysia and Thailand’s growing roles as an emerging ASEAN/global DC hub.
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| UOB KAYHIAN | UOB KAYHIAN |
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Raffles Medical Group (RFMD SP) 1H25 Results Preview: Expect Steady Earnings Growth; Headwinds Remain
RFMD will report its 1H25 results on 28 July, before the market opens. For 2025, ongoing competition for nurses is expected to drive up manpower costs and weigh on margins. RFMD’s domestic hospital continues to face a challenging outlook, dragged by a strong Singapore dollar and stiff regional competition. However, the group’s Chinese hospitals are expected to post better results as patient load improves. Maintain BUY but with a higher target price of S$1.18.
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Yinson (YNS MK) 1QFY26 Results Addendum: FPSO Catalysts, More Than Meets The Eye
This update focuses on YP’s Enterprise Reporting and serves as an addendum to YNS’ 1QFY26 results review. New information shows: a) substantial financial benefits realised from early delivery of FPSO Agogo’s progress milestone, b) FPSO AJ’s additional US$0.6b firm contract (with expiry extended to 2034), and c) smoother debt amortisation alleviates investor concern. While its non-O&G restructuring is still ongoing, we retain BUY and target price of RM3.15 (or RM3.45 post-AJ/Helang upside).
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