Broker: UOB Kay Hian
Date of Report: 24 July 2025

Asia Market Pulse: Earnings Surprises, Upbeat Bookings, and Strategic Shifts Across Key Regional Stocks

In this detailed breakdown, we explore the latest earnings, outlooks, and strategic pivots for leading companies across Greater China, Indonesia, Malaysia, Singapore, and Thailand. From semiconductor turnaround stories to robust retail growth, and cautious optimism in banking, investors will find actionable insights and comprehensive updates for portfolio positioning.

Greater China: ASMPT and Prudential Deliver Mixed Surprises and Strategic Clarity

ASMPT (522 HK): Semiconductor Recovery Signals, Strong Bookings, and AI-Driven Momentum

• Recommendation: BUY (Maintained)
• Share Price: HK\$63.20
• Target Price: HK\$92.40 (Upside: 46.2%)

ASMPT, a key player in semiconductor assembly and packaging, reported 2Q25 results largely in line with expectations. Revenue hit the mid-point of guidance, while bookings exceeded forecasts, buoyed by a significant order from smartphone clients and improving momentum in AI-related tools. The results signal a possible start of a new capex cycle for the sector.

Financial Highlights:

• Net profit missed consensus due to a HK\$86m FX-related loss and slightly higher opex driven by R&D.
• Gross margin at 39.7% was a touch below estimate, primarily due to FX effects and product mix in SMT solutions.

Key Financial Estimates:

• Capex and working capital changes may keep cash flows volatile in the near term.
• The company’s valuation is based on a forward PE of 29.3x 2026F, in line with historical averages.

Prudential (2378 HK): Delivering Strong New Business Profit Growth and Capital Management Focus

• Recommendation: BUY (Maintained)
• Share Price: HK\$98.10
• Target Price: HK\$128.00 (Upside: 30.5%)

Prudential, a leading life insurer in Asia and Africa, is on track to deliver 12% YoY growth in new business profit (NBP) for 1H25. This performance is anchored by double-digit growth in Hong Kong, Singapore, and mainland China. The company’s focus is on capital management and shareholder returns, with clarity expected on buybacks and dividends following the partial sale of its asset management stake.

Key Financial Estimates:

• Estimated 1H25 NBP: US\$1,256m (+12% YoY), APE: US\$3,282m (+5.5% YoY), NBP margin: 38%.
• Prudential has completed 79% of its US\$2b buyback, with potential for additional capital returns.
• Solvency ratio: Target range of 175-200%. Regular payout ratio could be ~65% going forward.

Prudential is expected to maintain strong growth momentum, with upside from improved agency quality, product mix, and digital initiatives. The stock trades at 0.9x 2025F embedded value, a discount to peers.

Indonesia: Medco Energi Internasional (MEDC IJ) – Disciplined Growth and Diversification

• Recommendation: Not Rated
• Share Price: Rp1,260

Medco Energi continues to pursue a disciplined portfolio diversification strategy. The company’s 2024 financials reflect stable EBITDA margins above 50% and a net profit margin of 15.3%. Debt remains elevated, but management is focused on deleveraging and prudent investment.

Key Financials (US$m):

• Net debt/equity remains high at 119.7% in 2024, but leverage is gradually improving.
• Focus remains on operational efficiency, stable production, and cash flow discipline.

Malaysia: CIMB Group (CIMB MK) – Cautious Outlook Amid Loan Growth Headwinds

• Recommendation: HOLD (Maintained)
• Share Price: RM6.67
• Target Price: RM7.52 (Upside: 12.8%)

CIMB Group, Malaysia’s second-largest consumer bank, faces slowing loan growth due to continued client caution and currency effects. Management expects loan growth at only 2% for 2025 (vs. previous target of 5%), with asset quality risks mitigated by strong provision buffers.

Key Observations:

• Trade-related loans are less than 5% of the group’s book, with US export exposure at 3-5%.
• Loan loss coverage ratio is healthy at 102%; 2025 net credit cost guidance maintained at 25-35bps.
• 2Q25 non-interest income is expected to grow, driven by trading and forex gains, but fee income lags.
• NIM is expected to show a slight improvement in 2Q25, with full-year guidance stable to -5bp.
• Dividend payout forecast at 55% (yielding 5.5%), with room for special dividends if capital remains robust.
• 2025 ROE guidance: 11-11.5%.

Key Financials (RMm):

• Environmental: RM30b in green loans by 2040; zero new coal financing.
• Social: Board gender diversity at 30%; focus on financial inclusion for B40 communities.
• Governance: 60% independent directors.

Singapore: Aztech Global, DFI Retail Group, Digital Core REIT – Mixed Results and Strategic Resets

Aztech Global (AZTECH SP): Cautious Optimism After Earnings Beat

• Recommendation: HOLD (Upgraded)
• Share Price: S\$0.605
• Target Price: S\$0.58

Aztech Global, a seasoned electronics manufacturer, posted a 2Q25 net profit of S\$15m, down 53% YoY but rebounding 873% QoQ, exceeding expectations. The performance was driven by customer restocking, though revenue and net profit remain below last year due to muted demand.

Key Financials (S$m):

• Declared interim dividend of 1.0 S cent per share (48% payout).
• Order visibility remains low; outlook is cautious amid macro/geopolitical risks.

DFI Retail Group Holdings (DFI SP): Resilient Retailer Delivers Profit Jump and Special Dividend

• Recommendation: BUY (Maintained)
• Share Price: US\$3.45
• Target Price: US\$4.30 (Upside: 24.6%)

DFI Retail Group, operating across food, health & beauty, home, and restaurants, reported a robust 1H25 with underlying profit up 39% YoY and a return to net cash. The health & beauty division led growth, and a special dividend of US\$0.443/share was declared following strategic divestments.

Key Financials (US$m):

• Net cash position of US\$443m as of 1H25.
• Underlying profit guidance raised to US\$250-270m for 2025.
• Ongoing divestments and margin expansion in H&B and convenience segments.

Digital Core REIT (DCREIT SP): Data Centre REIT Maintains DPU, Expands into Japan

• Recommendation: BUY (Maintained)
• Share Price: US\$0.555
• Target Price: US\$0.88 (Upside: 58.6%)

Digital Core REIT, with a global data centre portfolio, delivered steady 1H25 results, maintaining DPU despite ongoing refurbishment at Linton Hall Road. The REIT expanded into Japan by acquiring a 20% stake in Digital Osaka 3, funded by a ¥10b fixed-rate note.

Key Financials (US$m):

• Aggregate leverage at 38.3%; cost of debt down to 3.4%.
• Data centre demand is projected to grow at a 22% CAGR through 2030, with AI-driven facilities a major driver.
• Rental income is diversified across the US, Canada, Germany, and Japan.

Thailand: Banking Sector Surpasses Expectations, Caution for 2H25

Banking Sector 2Q25: Investment Gains Drive Earnings Beat

• Combined net profit: Bt56.3b (+5% YoY, -4% QoQ), beating forecasts by 16% (sector) and 7% (market).
• Investment gains, both mark-to-market and realized, were the main reason for the outperformance.
• NIM compressed to 3.47% from 3.59% in 1Q25 as lending yields fell.
• Expect net profit to soften in 2H25 as these investment gains are unlikely to recur.
• Policy rate cuts are anticipated following the appointment of the new Bank of Thailand governor.

Peer Comparison Snapshot:

Bangkok Bank (BBL TB): Conservative Tone, GDP Forecast Trimmed

• Recommendation: HOLD
• Share Price: Bt147.50
• Target Price: Bt154.00

• 2025 GDP forecast revised down to 1.5-2.0%.
• No intention to realize debt securities for bottom line management, but will trade opportunistically.
• Dividend payout ratio of 40% is achievable in future (2024: 36%).
• Maintains 2025 targets; expects credit cost to be in line with last year.

Key Financials (Btm):

Kiatnakin Phatra Bank (KKP TB): Positive Tone, Credit Cost to Fall

• Recommendation: HOLD
• Share Price: Bt52.75
• Target Price: Bt50.00

• 2025 loan growth target cut to -5% to -8%.
• Loan spread target reduced to 4.5%; NPL ratio now 4.3-4.5%.
• Credit cost guidance lowered to 1.8-2.0% for 2025.
• Wealth management now 28% of revenue; aiming to increase this to 35-40%.
• Actively considering share buybacks to boost shareholder returns.

Key Financials (Btm):

WHA Corporation (WHA TB): Softer 2Q25 Net Profit Expected

• Recommendation: BUY
• Share Price: Bt3.48
• Target Price: Bt4.80

WHA, a leader in industrial real estate and logistics, expects softer net profit momentum in 2Q25 due to delayed land transfers. However, land sales in 1H25 are up 43% HoH and flat YoY.

Key Financials (Btm):

• Revenue split for 2025F: Industrial Development 41%, Logistics 27%, Utilities & Power 17%, Sale of Investment Properties 15%.

Conclusion: Asia’s Blue Chips Plot New Growth Paths Amid Volatility

This reporting season highlights resilience and adaptability among Asia’s market leaders. While semiconductor, insurance, and retail names are showing green shoots or delivering on growth promises, banks are treading cautiously, prioritizing risk buffers, and targeting stable returns. As policy shifts and macro uncertainties persist, the ability to pivot, innovate, and return cash to shareholders will separate the winners in 2025 and beyond.