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UOB KAYHIAN |
UOB KAYHIAN |
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Banking Factoring In Resiliency Premium For Singapore Banks
Highlights • Singapore banks are structurally resilient due to the government's fiscal prowess that allows it to intervene decisively through aggressive fiscal spending during economic crises. The banks themselves also have stable asset quality, strong capital adequacy and liquid balance sheets.
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Consumer China Consumer: 2026
Dragon Boat Festival Consumption – Mild Recovery As Expected Highlights • During the Dragon Boat Festival holiday (19-21 June), consumption showed a mild recovery trend. • Offline consumption remained tepid, partly due to the overlap with the FIFA World Cup. This tepid performance was reflected in the moderation of offline retail sales growth, alongside a decline in per capita spending in Hainan’s duty-free consumption and domestic tourism. • Maintain OVERWEIGHT. Our preferred stocks are Mengniu, Midea, Yili and Yum China.
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Malaysia Banking The KLFIN’s performance during GE years
Cautiousness typically prevails Tracing the performance of the KL Finance Index (KLFIN) back through to the previous 6 General Elections (GE), we would conclude that the preelection trend has generally been neutral to slightly positive. In our view, cautiousness typically prevails prior to a GE, with the mood dictated by prevailing economic conditions and perceptions of political stability postelection. We remain NEUTRAL on the banking sector, with BUYs on RHB, PBK, HLBK and HLFG.
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Petronas Chemicals (PCHEM MK) Declining product ASPs amid waning risk premiums
D/G to SELL; TP lowered to MYR3.92 As both O&D and F&M ASPs are normalising, we note that PCHEM’s potentially strong 2Q26 print may be unsustainable. We cut our FY26E EPS by -31% to account for: i) lower O&D segment UR; ii) lower EBITDA margin assumptions due to operating leverage as PCHEM will be going through a major plant turnaround in Kertih – resulting in lower sales volumes; and iii) lower urea prices. As such, we D/G PCHEM to SELL with a lower TP of MYR3.92 (from MYR5.62) – pegged to an unchanged PER of 15x on FY26E EPS.
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| LIM & TAN | LIM & TAN |
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We highlight key points raised in Mapletree Industrial Trust’s / MIT ($1.95, up 1 ct) FY26 Annual Report: In line with our focus on ‘Shaping Balance • Building Strength’, we advanced our portfolio rebalancing efforts to enhance both the quality and resilience of MIT’s portfolio. The Osaka Data Centre, acquired on 28 September 2023, reached a key milestone with the completion of its final phase of fitting-out works on 2 May 2025. With all phases now operational, the property is expected to deliver stable income, which will reinforce the resilience of MIT’s earnings profile. We continued to reshape MIT’s portfolio while maintaining financial agility to capture value-accretive investment opportunities. MIT’s market cap stands at S$5.6bln and trades at 16x forward PE and 1.1x PB, with a dividend yield of 6.5%. Consensus target price stands at S$$2.03, representing 4% upside from current share price. Given weakness expected over the coming year from non-renewal of several leases and well as expiry of interest rate hedges, we maintain HOLD on MIT
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The Board of Directors of Geo Energy Resources Limited ($0.435, down 1/2ct) wishes to provide an update on recent regulatory developments in Indonesia following various media reports regarding the Indonesia’s proposed plan to centralise control of commodity exports under Indonesia’s sovereign wealth fund, Danantara Indonesia (“Danantara”). Since the Company’s announcement dated 25 May 2026, the Indonesian authorities and Danantara have provided further policy clarifications relating to the proposed plan and the implementation: Danantara has clarified that it will only serve as a trade oversight intermediary: We see Geo Energy Resources as a beneficiary of higher coal prices and coal volume growth in 2H’26 when their new coal mines come on-stream as well as coal toll road infrastructure play when their newly built road MBJ goes “live” in 2H’26. Trading at an undemanding forward PE of 7-8x, 0.9x book, 2-3% div yield and with consensus 1 year target price of $1, we maintain an “Accumulate” rating on Geo Energy Resources, especially on weakness. |
