Broker: UOB Kay Hian
Date of Report: 21 July 2025

Asia-Pacific Market Insights: Key Stock Picks, Earnings Previews, and Strategic Sector Updates for July 2025

Discover the latest investment opportunities, earnings trends, and sector outlooks across Greater China, Indonesia, Malaysia, Singapore, and Thailand. This comprehensive report delivers in-depth analysis, forecasts, and actionable recommendations on leading stocks and sectors for savvy investors and market watchers.

Key Market Indices and Economic Assumptions

Key Economic Growth Forecasts (GDP % yoy):

• US: 2024F 2.8 | 2025F 1.0 | 2026F 1.5
• Euro Zone: 0.7 | 0.5 | 1.0
• Japan: 0.2 | 1.0 | 1.5
• Singapore: 4.4 | 1.7 | 1.4
• Malaysia: 5.1 | 4.0 | 4.8
• Thailand: 2.5 | 2.0 | 2.6
• Indonesia: 5.0 | 4.9 | 5.2
• Hong Kong: 2.5 | 2.2 | 2.5
• China: 5.0 | 4.2 | 4.2

Greater China: Property Sector Update & Company Insights

China Property Sector: CR Land and COLI 1H25 Operational and Earnings Preview

The Chinese property sector continues to face headwinds. In 1H25, both China Resources Land (CR Land) and China Overseas Land & Investment (COLI) reported sales below targets, reflecting ongoing market challenges, particularly in key cities like Beijing and Guangzhou.

• CR Land saw contracted sales decline by 11.6% yoy to RMB110.3b, with GFA sold dropping 21.0% to 4.1m sqm, but ASP improved 12% yoy to RMB26,778/sqm.
• Recurring business revenue grew 8% yoy to RMB24.6b, with rental income from investment properties up 12.1% yoy to RMB15.9b. Management expects tenant sales growth of 15-20% and single-store sales growth in the high single digits, outperforming national retail sales growth of 5%.
• Development property revenue is expected to rise over 20% yoy, with recurring business revenue up 8%. The blended GPM is set to improve to 23.7% (vs. 22.3% 1H24), thanks to a higher DP business margin and fewer inventory impairments. However, core net profit may drop about 5% yoy due to lower one-off gains from asset disposals.
• COLI reported a sharper 19% yoy drop in contracted sales to RMB120.2b, with ASP down 14%. The decline is partly attributed to a greater focus on luxury residential launches in 1H24. Its core net profit is projected to fall around 20% yoy, mainly due to margin pressure and continued inventory impairment.

Sector View: Despite underwhelming sales, both companies’ financials outperformed market fears. CR Land’s improved margins and resilient investment property portfolio stand out. The report maintains a MARKET WEIGHT stance, with CR Land as the top sector pick and COLI also a BUY.

Peer Comparison Table:

Tiangong International (826 HK): Specialty Steels Leader Riding Recovery Wave

Tiangong International, a global leader in specialty steels and titanium alloys, is optimistic about demand recovery in 2025-26, driven by traditional specialty steel markets and strong growth in titanium alloy applications for consumer electronics and new materials.

• 2024 revenue was RMB4,832m, with titanium alloys accounting for 16% and enjoying a high 33.5% gross margin.
• Ongoing R&D in advanced materials (powder metallurgy, high-nitrogen steel, low-activation steel powder) is a focus, with R&D expenses ratio over 6% in recent years.
• International expansion continues, especially in Thailand, where precision tools output has ramped up and new production bases are under construction.
• Dividend payout ratio was 35% in 2024, with an ongoing share buyback programme.

Key Financials:

Indonesia: Adi Sarana Armada (ASSA IJ) – Blue Ocean Leader in Integrated Mobility and Logistics

Adi Sarana Armada (ASSA) stands out as Indonesia’s only integrated mobility and logistics provider, delivering robust net profit growth and evolving from car rental into a multi-segment logistics powerhouse. Backed by the Triputra Group, ASSA capitalizes on tech-driven synergies and rising demand in logistics and used-vehicle ecosystems.

• 1Q25 net profit hit a record Rp102b (+227.5% qoq, +43.3% yoy), primarily due to the logistics segment’s turnaround, especially last-mile delivery (Anteraja).
• Net profit is projected to grow at a 16% CAGR over 2025-27, with the logistics and used-vehicle segments as main drivers.
• Net gearing is forecast to drop from 1.8x in 2024 to 1.1x by 2027 as growth shifts toward less capex-intensive segments.
• Key risks: high leverage, asset depreciation, execution risk in early-stage logistics ventures, and low share price liquidity.
• Initiate BUY with SOTP-based target price of Rp1,300 (upside +60.5%), implying 12.9x 2025F PE. ASSA trades at 8.1x 2025F PE and 6.8x 2026F PE, with a forecast 2026 dividend yield of 7%.

Key Financials (Rp bn):

Malaysia: PPB Group – Stable Earnings Outlook, Attractive Valuation

PPB Group is expected to deliver flat 2Q25 earnings of RM340m-370m, supported by steady grains & agribusiness and associate income, mainly from Wilmar.

• The grains & agribusiness segment, recovering from weather disruptions, continues to be the main operating income driver.
• Consumer products segment to see slight margin improvement as input costs ease, benefiting from a stronger ringgit.
• Film exhibition and distribution division likely to post positive EBIT due to more box-office releases.
• Wilmar remains the major associate, contributing RM284m in 1Q25 (80% of group earnings).
• Maintain BUY, TP RM15.80, with a projected 15% yoy net profit growth for 2025, driven by Wilmar and improved core business EBIT.

Key Financials (RMm):

ESG Highlights:

• Five-year target to reduce energy-use intensity for flour/feed production by 5% by 2023, and GHG emissions by 3% by 2025, 5% by 2031.
• Zero fatalities across divisions; transparent governance with anti-bribery policies.

Malaysia: Northeast Group (NE MK) – Growth Story with Attractive Valuation

Despite a 91% share price rally since April 2025, Northeast Group remains undervalued, trading at 18x FY26F PE. The company benefits from key customers’ onshoring, robust open orderbook (~RM32m), and monthly replenishment rate (~RM10m).

• Transitioning up the value chain, NE is expanding capacity (new factory to boost production by 50% by 2028) and targeting high-growth segments like 6G, advanced cooling for data centers, and new US presence to offset tariff risks.
• 2Q25 core net profit surged 52% qoq to RM6.1m, with 2H25 expected to be even stronger.
• Maintain BUY, TP RM0.89 (25x FY26F PE, -25% discount to peer mean PE). FY26 revenue/net profit forecast to grow 31%/52%.

Key Financials (RMm):

Singapore: Lum Chang Creations (LUCC SP) – Urban Revitalization & Co-Living Market Leader

Lum Chang Creations (LCC) stands as a market leader in Singapore’s urban revitalisation segment, specializing in conservation and interior fit-outs. With a robust orderbook (S\$123m), LCC’s EPS is forecast to grow 144% in FY25 and 12% in FY26, fueled by rising government commitment to heritage projects.

• Estimated 15.7% market share in urban revitalisation, with completed landmark projects such as St James Power Station and the National Museum of Singapore.
• Superior net margin (10%+), ROE above 30%, and a capital-light, cash-generative business model. Net cash is forecast at S\$29m by Jul 2025, 37% of market cap.
• Initiate BUY, TP S\$0.39 (9.5x FY26F PE, 10% discount to peer average). Attractive FY26 dividend yield of 4.9% forecast, backed by strong orderbook and industry tailwinds.

Key Financials (S$ m):

Thailand: Financials & Chemicals – Results and Sector Moves

Krungthai Card (KTC TB): Steady Results, Strong Asset Quality

Krungthai Card delivered a resilient 2Q25 net profit of Bt1.9b (+4% yoy, +2% qoq), in line with forecasts. Asset quality remained robust, with NPL ratio falling from 2.0% to 1.8% and loan-loss coverage rising to 420%.

• Net interest income was Bt3.6b (+1% qoq), with non-interest income at Bt2.8b.
• Credit costs fell from 588bp (1Q25) to 572bp (2Q25).
• Shareholding structure became more diversified, enhancing investor confidence.
• Maintain BUY, target price Bt45.00, implying 2.64x 2025F P/B.

Key Financials (Btm):

TMBThanachart Bank (TTB TB): Prudent Growth, Well-Managed Risk

TTB reported 2Q25 net profit of Bt5.0b (-7% yoy, -2% qoq), with a continued focus on selective growth and asset quality. Loans contracted 0.4% qoq, reflecting the bank’s cautious lending amid a softening macro backdrop.

• Provisioning was Bt4.3b, with credit cost at 143bp (-9bp qoq).
• NPL ratio declined to 2.73% and coverage remained robust at 149%.
• Maintain HOLD, TP Bt1.95 (0.8x 2025F P/B).

Key Financials (Btm):

PTT Global Chemical (PTTGC TB): Downgrade Amid Losses, Weak Outlook

PTTGC is expected to post a 2Q25 net loss of Bt3.5b, with persistent weakness in the olefins segment and higher stock losses. The report downgrades the stock to SELL, TP Bt20.00, reflecting a slower-than-anticipated recovery and potential for downward earnings revisions.

• Core loss in 2Q25 forecast at Bt3.2b, with refinery EBITDA improving but offset by poor olefins performance.
• 2025-26 earnings forecasts cut, now expecting net loss of Bt8.0b (prev. profit Bt5.5b) in 2025 and reduced profit of Bt6.0b in 2026.
• Dividend yield projected at 3.3% (2025), rising to 4.2% (2027).

Key Financials (Btm):

Conclusion and Top Picks

This extensive market review highlights resilient performance in key sectors, attractive value opportunities, and evolving risks. Top BUYs include Anta Sports (2020 HK), Bank Tabungan Negara (BBTN IJ), Hong Leong Bank (HLBK MK), CP ALL (CPALL TB), Major Cineplex (MAJOR TB), CR Land (1109 HK), Adi Sarana Armada (ASSA IJ), PPB Group (PEP MK), Northeast Group (NE MK), and Lum Chang Creations (LUCC SP). Investors are advised to monitor sector policy moves, corporate earnings, and global macro trends for further opportunities and risks in the months ahead.