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UOB KAYHIAN |
UOB KAYHIAN |
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Sembcorp Industries (SCI SP) Powering Ahead With Singapore Grids, Floating Solar And Hydrogen Dreams
SCI continues its disciplined pivot toward sustainable growth, underpinned by robust execution across renewables, energy infrastructure, and core conventional assets. The recent Senoko stake acquisition, long-term PPAs, and India renewables and battery storage projects enhance earnings visibility and regional positioning. We remain positive on SCI given its role as a scalable platform for Asia’s energy transition. Maintain BUY. Target price: S$8.00.
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Automobile – China Weekly: Government Steps In To Restore Order
The authorities are cracking down on predatory pricing, supplier exploitation and inventory fraud, which bodes well for the sustained development of China’s auto industry. However, overcapacity remains a structural problem. The 2025 Greater Bay Auto Show highlighted electrification, autonomous driving, and low-altitude mobility, with BYD’s "oil-electric same-speed" ultra-fast charging and plans for 15,000 charging piles standing out. Maintain MARKET WEIGHT. Top BUYs: Geely and XPeng.
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CGS CIMB |
MAYBANK KIM ENG |
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Prudential PLC The Indian catalyst
■ We see favourable IPO conditions for Pru’s Indian AMC IPO, as Indian May 2025 equity offerings was the best May month since at least 2014 (Fig 1). ■ The IPO is a catalyst as: i) Pru could return to investors the IPO proceeds, and ii) Pru’s Indian AMC has been undervalued by investors, in our view. ■ We see Pru’s FY24-FY27F cash generation profile as more attractive than peers, after analysing peers’ future distributable earnings profile (Fig 10). ■ Reiterate Add rating and top sector pick. Unchanged TP of HK$142.
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YTL Power (YTLP MK) AI compute on track
Potential earnings upside With YTLP’s AI compute on track for a 3Q25 launch, we estimate a potential net profit uplift of c.4%/6% in FY26E/27E. We continue to view YTLP’s risk-reward favourably given its undemanding valuations, with rerating catalysts being: 1) affirmation of Wessex’s medium-term recovery, and 2) positive progress on its DC/AI compute business. Reiterate BUY with an unchanged SOP-based TP of MYR4.20.
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| CGS CIMB | MAYBANK KIM ENG |
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BYD Electronic Apple & BYD ignite multi-year hypergrowth
■ We expect BYDE to transition from an assembler to a premium high precision component supplier in the Apple supply chain, driving a 13% revenue CAGR. ■ We expect BYDE to see a significant increase in orders for intelligent driving components for BYD’s EVs as BYD’s intelligent driving penetration grows. ■ We expect BYDE to deliver a 26% net profit CAGR in FY25-27F driven by increasing orders from Apple, BYD, and NVIDIA. ■ Initiate coverage with an Add rating. Our TP of HK$46.80 is based on 16x FY26F P/E; the stock currently trades at an attractive 12x FY25F P/E.
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PTT Global Chemical (PTTGC TB) No change in fundamentals
Downgrade to SELL, TP THB16 We downgrade PTTGC to SELL from HOLD but maintain our TP at THB16. We think the market has been overly excited by the prospect of improving US-China trade relations and Chinese stimulus in recent weeks. However, we see no change to fundamentals with the petrochemical downcycle likely to last until at least 2028E, but possibly much longer. We do not view PTTGC as particularly attractive as it trades at 0.68x P/tangible BV which is the 2nd most expensive among Thai downstream names. We prefer exposure to refining margins with SPRC (SPRC TB, CP THB5.55, BUY, TP THB9.1) as our top pick.
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