ASEAN High-Conviction Picks: Best stock ideas in ASEAN – August 2026

研报英文原文证据摘录

ASEAN High-Conviction Picks: Best stock ideas in ASEAN – August 2026

of its non-core assets and platforms to close the gap to its RNAV.

Singtel is focusing on improving ROICs and is seeing an earnings turnaround across a number of its opcos. We see scope for Singtel to

Telcos, Media &

ST SP increase dividends through its cash reserves, improving cash flows in certain geographies, and from further capital recycling. Improvements in

Technology

ROICs and dividends could rerate Singtel, which is trading at a deep valuation discount based on our estimates.

Infrastructure, We are OW on KEP on its successful pivot into a global asset manager. KEP has already exceeded its S$100bn FUM end-2026 target and the

Transport & KEP SP recent monetization of 10 legacy rigs demonstrates its ability to monetize its non-core assets and should underpin a return of capital to

Industrials shareholders.

Source: J.P. Morgan.

Table 7: ASEAN top avoids - Rationale

Stock Name Rationale

CDB is at risk from intense wireless competition. CDB’s underlying earnings could decline over the mid-term and CDB could see significant negative

CDB MK

earnings revisions.

BMRI IJ We worry on NIM-led PPoP risks, low b/s growth, as well as asset quality. Our 2026-28 EPS estimates are 11-23% below the Street.

We see material downside risk to Street expectations and company guidance. Recent 1Q26 results highlighted significant operating expenses and negative

T MK free cash flow, despite capex spend being significantly below guidance. We are UW on TM due to the downside risk we see to earnings expectations arising

from competitive risks to broadband and TM One.

We see risk of higher NPL formation following low NPA formation in 1Q (S$341mn), particularly in Greater China CRE. Risk-reward has tilted to the

UOB SP