Malaysia Equity Strategy HK Marketing Feedback: Finding the next re-rating

研报英文原文证据摘录

Malaysia Equity Strategy HK Marketing Feedback: Finding the next re-rating

ffected. Our base case remains that political developments may influence the Khoi Vu, CFA AC

pace of implementation but are unlikely to derail Malaysia’s structural growth (65) 6882-8170

khoi.t.vu@jpmorgan.com

agenda. Unless politics materially changes the earnings outlook, election- J.P. Morgan Securities Singapore Private Limited

related volatility should create opportunities to improve portfolio quality. Rajiv Batra

• #2: Financials – PBK offers the clearest re-rating path: The strongest (65) 6882-8151

common thread across the meetings was the search for companies where rajiv.j.batra@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

earnings expectations have yet to fully reflect underlying fundamentals.

Within financials, discussions centered on Public Bank versus CIMB. We

continue to favour Public Bank, where resilient earnings, capital return

potential and liquidity remain underappreciated. We believe improving

confidence in earnings delivery will provide the clearest path to further re-

rating.

• #3: AIDC – execution becomes the differentiator: The discussion has

evolved beyond whether Malaysia will benefit from the AIDC investment

cycle to whether companies can convert announced investments into

sustainable earnings growth. Investors are also increasingly asking whether

Thailand could emerge as the next AIDC destination. Our preferred

beneficiaries remain Sunway Construction and Tenaga. We believe current

expectations do not fully reflect improving earnings visibility, grid investment

or data center order replenishment. As projects transition from announcement

to execution, confidence in earnings delivery should continue to strengthen.