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Hong Kong Stocks Close Lower As Tech Headwinds Weigh In

The Hong Kong market ended Jan 16’s session under pressure, with the Hang Seng Index slipping 0.29% to finish at 26,844.96, rolling back earlier gains amid mixed sector performance.

After an initial upside attempt, profit-taking and weakness in broader tech and heavyweight names pulled the market down. The Hang Seng Tech Index also lagged, dropping about 0.11% as semiconductor and artificial intelligence optimism failed to lift the broader market.

Blue-chip stocks told a mixed story. Tencent eased about 0.7%, while Hong Kong Exchanges & Clearing held near flat. Mainland-linked financials saw moderate moves, with some banks inching lower and select insurers seeing modest gains.

On the upside, select consumer and property plays outperformed, but gains were not enough to counter selling pressure elsewhere. Trading volume remained robust with turnover in the billions of HK dollar, signalling active repositioning ahead of next week’s China macro data.

Market sentiment was cautious, with investors digesting recent global tech sector moves and awaiting fresh catalysts from China’s economic releases. Despite the dip, the broader market managed to clinch a weekly rise, extending resilience after recent volatility.

Looking ahead, traders will watch for China’s upcoming GDP and policy signals to gauge whether the market can regain traction next week.

Singapore Stocks Close Higher As Week Ends On Bullish Note

The Straits Times Index (STI) finished its trading session on Jan 16 up 0.3% at 4,849.10, extending gains that helped the benchmark climb about 2.1 % for the week. The solid end-of-week lift reflected renewed risk appetite across the market, buoyed by positive cues from global markets and resilient regional sentiment.

Market breadth leaned positive, with advancers narrowly outnumbering decliners as about 1.4 billion shares worth S$1.5 billion traded, underscoring disciplined turnover.

Banking plays and blue chips led the charge, with the trio of local lenders pushing higher: DBS, UOB and OCBC all delivered modest gains. Property and industrial shares also drew investor interest, with City Developments and Sembcorp Industries among the top STI performers. Meanwhile, shipbuilders Seatrium and Yangzijiang slipped, tempering the broader advance.

Sentiment was supported by upbeat cues from Wall Street, where tech-related earnings lifted confidence, and softer-than-expected US jobless claims, easing near-term risk concerns.

Traders will be watching Singapore’s CPI figures next week as the market seeks fresh catalysts after a steady start to 2026.

Wall Street Ends Flat As Earnings Kick Off; Weekly Losses Logged

US stocks slipped in a choppy session on Jan 16 as investors headed into a long weekend, leaving the major indexes with weekly losses despite a solid start to fourth-quarter earnings season.

Reuters reported that the Dow dipped 83.11 points, or 0.17%, to 49,359.33, while the S&P 500 edged down 0.06% to 6,940.01 and the Nasdaq also eased 0.06% to 23,515.39. For the week, the S&P 500 shed 0.38%, the Nasdaq fell 0.66% and the Dow lost 0.29%.

Healthcare led sector laggards on Jan 16, dropping 0.8%, while semiconductor stocks extended a two-day rally with the Philly Chip Index up 1.2%. Bank shares were mixed: solid earnings from major lenders were overshadowed by pressure from President Donald Trump’s proposal to cap credit card interest rates at 10%. The financial sector eked out a 0.1% gain but still suffered its steepest weekly drop since October.

Markets also digested political signals, after Trump indicated economic advisor Kevin Hassett may remain in his current role — cooling speculation he would replace Federal Reserve Chair Jerome Powell.

With investors cautious ahead of Jan 19’s Martin Luther King Jr holiday closure, traders cited monthly options expiration as a factor behind choppiness on Jan 16. Flows also rotated out of megacap tech and into undervalued pockets of the market: the Russell 2000 powered to another record close, up 2.04% on the week. Real estate, consumer staples and industrials topped the week’s sector winners.

Breadth was weak on both major exchanges, with decliners outpacing gainers on the NYSE and Nasdaq. Turnover was heavy, with 18.77 billion shares traded versus the 20-day average of 16.85 billion.

China And Canada Seek New Strategic Partnership

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Chinese President Xi Jinping and Canadian Prime Minister Mark Carney met on Friday for the second time in less than three months, in a bid to chart the course for bilateral ties that began to thaw last year.

The Xi-Carney meeting last October in Gyeongju, Republic of Korea, marked a turnaround of bilateral relationship, and placed it on a new trajectory of positive development. The two sides have had in-depth discussions on resuming and restarting cooperation across various fields, and achieved positive outcomes.

The healthy and stable development of China-Canada relations is in the common interests of the two countries and also conducive to world peace, stability, development and prosperity, Xi told Carney, who is on an official visit to China from Wednesday through Saturday, marking the first by a Canadian prime minister in eight years.

With a sense of responsibility for history, for the people and for the world, the two sides should advance the China-Canada new strategic partnership, steer their ties onto the track of sound, steady and sustainable development, and bring more benefits to both peoples, Xi said.

He said China and Canada should be partners of mutual respect, common development, mutual trust and collaboration.

He said that despite different national conditions, both countries should respect each other’s sovereignty and territorial integrity, respect the political systems and development paths they have chosen respectively, and adhere to the correct way of getting along with each other.

Xi urged both sides to encourage exchanges and cooperation in education, culture, tourism, sports and sub-national areas, and facilitate two-way travel to entrench public support for strong ties.

China said it is willing to enhance communication and coordination with Canada within the frameworks of the United Nations (UN), the G20 and the Asia-Pacific Economic Cooperation to jointly address global challenges.

Carney wishes to build with China a new strategic partnership that is strong and enduring so as to deliver greater benefits to the two peoples, Carney said.

Canada said it respects the one-China policy and its commitment to working with China in the spirit of mutual respect and partnership to expand and strengthen cooperation in the economy and trade, energy, agriculture, finance, education, climate change, and others, he said.

Carney said multilateralism underpins global security and stability, and the Global Governance Initiative put forward by President Xi is important.

Canada would also like to intensify multilateral coordination with China to uphold multilateralism and the authority of the UN and to promote international peace and stability, he added.

During Carney’s visit, both sides issued a joint statement of the China-Canada leaders’ meeting, and signed multiple cooperation documents covering trade, customs, energy, construction, culture, and public security.

Rakuten Places 20% Upside Fair Value On Guan Huat Seng

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Guan Huat Seng Holdings Berhad (GHS), a distributor and retailer of shelf-stable and frozen seafood, flavouring products, dried foods, snacks and general groceries, is expected to deliver steady earnings growth over the next two financial years, underpinned by capacity expansion, a broader product portfolio and an extensive distribution network.

Rakuten projects the group to record core net earnings of RM9.2 million in FY26F and RM10.1 million in FY27F. A BUY call has been maintained on the stock, with a fair value of RM0.31, based on 16 times FY26F price-earnings, reflecting confidence in the group’s medium-term growth prospects. The IPO listing price has been set at RM0.25

GHS plans to introduce new products by the second half of 2026, alongside an expanded range of externally sourced items, primarily in shelf-stable and frozen seafood. The wider product offering is expected to enhance scale efficiencies and support margin resilience over the medium term.

To strengthen its retail presence, the group intends to open three additional retail outlets—two in the Klang Valley and one in Johor—expanding from its current single outlet. These new stores are expected to commence operations between 2HCY26 and 2HCY27, complementing GHS’s existing distribution footprint across 12 states in Malaysia and 16 overseas markets. The retail expansion is aimed at improving customer engagement through physical touchpoints, enabling small-volume purchases and enhancing brand visibility.

On the capacity front, approximately 70% of IPO proceeds will be channelled towards facilities expansion. This includes the construction of a new Integrated Complex in Batu Berendam, Melaka, targeted to commence in 1QCY26, to support distribution and seafood processing activities, as well as showroom, office and research and development functions. In addition, a new Krubong facility will be established for in-house flavouring production and warehousing. Both facilities are expected to be completed by 2HCY28.

The expansion is seen as timely, with the group’s effective manufacturing utilisation rate currently ranging between 74% and 96%, indicating limited headroom under existing facilities.

Sector demand is also expected to benefit from the Visit Malaysia 2026 campaign, which targets 35.6 million tourist arrivals. Higher tourism-driven foodservice activity across restaurants, hawker centres and catering operators is likely to lift downstream demand for processed and frozen seafood products, indirectly supporting volume growth for distributors such as GHS.

From a balance sheet perspective, GHS recorded a gearing ratio of 0.4 times in FY25 and is expected to move into a net cash position post-listing. The group has also committed to a dividend payout of up to 30% of net profit, translating into an estimated dividend yield of around 1.2% for the year.

Bursa Grants Pimpinan Ehsan Extension Till June 30 To Submit Regularisation Plan

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Pimpinan Ehsan Berhad has been granted additional time by Bursa Malaysia to submit its regularisation plan, with the deadline to submit its regularisation plan to the Securities Commission to 30 June 2026.

However, Bursa cautioned that PEB’s securities may be suspended and subsequently delisted from the Official List if the company fails to meet key requirements. These include failing to submit the regularisation plan within the extended timeframe, failing to obtain approval for the plan, failing in any appeal process, or failing to implement the approved plan within the stipulated timelines.

Bursa Securities said its decision was based on several factors, including that PEB has had approximately seven and a half years since its first announcement on 31 May 2018 to regularise its condition. Bursa also noted that all cash companies are required to regularise their status expeditiously to preserve market quality, integrity, and investor confidence, and that adequate time and opportunity had already been accorded to PEB.

China’s Regulator Aims To Curb Market Volatility Posed By Speculators

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China’s securities regulator has pledged to prioritise market stability and resolutely prevent sharp fluctuations as a core objective for 2026, aiming to consolidate sound development of the capital market.

The commitment was made at an annual work conference held by the China Securities Regulatory Commission (CSRC) on Thursday, where the regulator reviewed the past year’s performance and outlined key tasks for 2026.

The meeting emphasised that while the capital market currently shows stable and sound performance, it still faces complex and severe challenges posed by intertwined domestic and external risks as well as the overlapping of persisting and emerging issues.

Efforts will be made to effectively enhance the intrinsic stability of the market, the CSRC said, adding that it will rigorously investigate and punish excessive speculation, market manipulation, and other illegal activities to prevent sharp market fluctuations.

It will work to foster a market ecosystem where “long-term capital engages in long-term investment,” the regulator said, pledging efforts to broaden the channels for medium and long-term capital inflows, introduce various products and risk management tools suited to long-term investment, and actively guide long-term, rational and value-based investment.

It also vowed to continue reforms in the multi-tiered equity market, crack down on illegal activities such as financial fraud, price manipulation and insider trading, and enhance corporate governance among listed firms.

The CSRC will advance the two-way opening up of the capital market in 2026. Efforts will be made to expedite the implementation of the optimized Qualified Foreign Institutional Investor scheme, expand the scope of futures products accessible to foreign investors, and enhance the facilitation of cross-border investment and financing, the regulator said.

MCMC To Meet X On Jan 21

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MCMC is set to have a crucial meeting with representatives from Elon Musk-owned X Corp. on January 21, 2026, to address the ongoing controversy surrounding the Grok artificial intelligence tool and its misuse in generating inappropriate content.

The meeting is set to be a platform for Malaysia to formally express its “disappointment” over the “naked images” and other sexually explicit and non-consensual manipulated content that has appeared on Grok. The government will also highlight its actions, including the temporary restriction of access to the Grok AI service within the country.

According to the regulator, the restriction was imposed as a “preventive and proportionate measure” under Section 233 of the Communications and Multimedia Act 1998, as legal and regulatory processes continue. The move follows similar action taken by Indonesia, making them among the first nations to block the service over these concerns.

Communications Minister Datuk Fahmi Fadzil has stated that the temporary block will only be lifted after the platform fully resolves the issues. X must “comprehensively demonstrate that Grok can no longer produce video or image content that could be misused” before the restriction is removed.

The controversy comes amid mounting global scrutiny of Grok, which was previously reported to have limited image generation to paying subscribers in response to a backlash over sexualised deepfakes. 

MA63 Implementation Remains Key Agenda For Govt, AGC Confirms

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The federal government will continue to prioritise the Malaysia Agreement 1963 (MA63), Attorney-General Tan Sri Mohd Dusuki Mokhtar said as Prime Minister Datuk Seri Anwar Ibrahim gave assurance that unresolved matters under the pact will be carefully refined and addressed.

Mohd Dusuki highlighted that implementation is coordinated through the MA63 Implementation Action Council, chaired by Anwar, while the Attorney-General’s Chambers (AGC) actively facilitates negotiations between the federal government and Sabah and Sarawak, including the review of the special grant under Article 112D of the Federal Constitution.

Other issues under review include proposals to increase Parliamentary representation for Sabah and Sarawak, and to expand state authority over scheduled waste management, currently governed by the Environmental Quality Act 1974.

Mohd Dusuki stressed that reforms requiring constitutional or legislative amendments are being meticulously deliberated to ensure they align with the Federal Constitution and MA63’s aspirations.

At the same time, Mohd Dusuki also revealed that the AGC is also engaged in discussions on the appointment of Judicial Commissioners in Sabah and Sarawak, as well as broader efforts to advance Borneonisation.

“The government remains committed to fulfilling Sabah and Sarawak’s legitimate aspirations while preserving the unity and integrity of the Federation,” he added.

Court Strikes Out Suit Filed Against Selangor Dredging Subsidiary

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SDB Properties Sdn. Bhd., a wholly-owned subsidiary of property developer Selangor Dredging Berhad has successfully had a material litigation suit filed against it struck out by the Shah Alam High Court today.

The court allowed SDBP’s Notice of Application dated October 6, 2025, to strike out the Writ of Summons and Statement of Claim dated July 28, 2025, filed by the Plaintiff, Condolink Sdn. Bhd.

The Civil Suit was originally filed by Condolink Sdn. Bhd. against SDBP and Inta Bina Sdn Bhd. As part of the court’s decision, the Plaintiff, Condolink Sdn. Bhd., has been ordered to pay costs to SDBP.

Hong Kong Café Favourite ‘Elephant Grounds’ Launches in Singapore

Elephant Grounds, the popular Hong Kong café chain known for its specialty coffee and Japanese-inspired brunch, has opened its first Singapore outlet at Guoco Midtown. According to CNA, the new cafe has taken over the former Mashi No Mashi ramen space.

Since its 2013 debut in a small Sheung Wan spot, the brand has grown to eight Hong Kong outlets with branches in Manila and an upcoming location in Jakarta.

The 70-seater café feels open and calm, with glass walls, warm wooden seating, and tree views outside. Co-founder Kevin Poon says the team waited to expand until they could contribute something meaningful to Singapore’s café scene.

Menus are designed around local routines. Breakfast runs from 8am to 11am with omelettes, granola, pancakes, and sandwiches. On the other hand, all-day offerings include donburis and sharing plates. Weekend brunch combines both into a focused selection of sweet and savoury dishes.

Coffee remains central. Beans are sourced from the award-winning Ijen Lesatari farm in East Java, locally roasted, and sometimes paired with Valrhona chocolate.

Cups start at 10 ounces, giving real value. Singapore-exclusive items include a Chicken Parm sandwich, but the menu keeps the core Elephant Grounds identity, with input from Hong Kong culinary directors Rafa Gil and Eane Wong.

A pre-opening taste test highlighted hits like the Lemon Croissant, which balances tangy curd with a light walnut topping. The Fish Fillet Sando pairs breaded halibut with wasabi kewpie coleslaw, while pastries like the Bacon & Mustard Danish lean heavily on carbs.

Drinks include Bulletproof Coffee made with coconut oil and butter, offering a rich, toasty flavour, and a solid flat white rounds out the coffee selection.

To find Elephant Grounds Singapore, head to Guoco Midtown, #01-04, 124 Beach Road. The cafe is open daily from 8 am to 8 pm.

MACC Proposes Six-Month Freeze On Plastic And E-Waste Imports To Assess National Risks

Malaysia’s anti-graft agency has called for a six-month moratorium on plastic waste and e-waste imports, citing growing concerns over governance, environmental risks and national integrity.

Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki said the pause would serve as a trial period to evaluate economic, environmental and enforcement impacts, stressing there is “no need for large-scale imports” of such materials.

He highlighted that the proposal will be discussed with the Chief Secretary to determine the proper authority before any permanent policy shift.

Azam emphasised for the need for tighter coordination among 12 task forces, especially involving Royal Malaysian Customs, the Department of Environment (DOE) and the Investment, Trade and Industry Ministry (MITI), reflecting how the issue has evolved beyond technical waste management into one of national interest and enforcement integrity.

Malaysia ranks among the top waste-importing countries since 2023, according to the Organisation for Economic Co-operation and Development’s 2025 report, while the Mismanaged Waste Index 2025 placed the nation in the high-risk category, with 26.4% of plastic waste poorly managed.

Indonesia Questions Meta Over Possible Instagram Data Leak

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Indonesia’s Ministry of Communication and Digital Affairs has requested clarification from Meta following reports of a possible user data leak linked to password reset procedures on Instagram.

Alexander Sabar, Director General of Digital Space Monitoring at Komdigi, said Meta has assured the government that the password reset process is an internal mechanism that does not expose user information to third parties.

“Passwords cannot be accessed or obtained by anyone other than the account owners. No indications have been found of misuse of the password reset feature allegedly used by external parties to steal data,” Sabar said in a statement on Friday.

He noted that Meta and Instagram are investigating the reports, with findings to be used as the basis for further evaluation.

The ministry has held a meeting with Meta, citing its authority to summon electronic system providers operating in Indonesia for questioning or clarification.

“The summoning of Meta reflects the state’s commitment to protecting personal data and safeguarding the security of the national digital space,” Sabar said.

The ministry urged the public to remain calm, avoid spreading unverified information, and continue to protect their digital accounts.

China’s STAR Composite Index Closed Higher On H200 AI Chips Prospect

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The STAR Composite Index, which reflects the performance of stocks on China’s sci-tech innovation board, closed 1.63 percent higher at 1,855.03 points on Friday.

The STAR 50 Index, which tracks the 50 largest stocks listed on the board that also meet certain liquidity requirements, closed 1.35 percent higher at 1,514.07 points.

This comes after US administration approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.

The sci-tech innovation board, commonly known as the STAR Market, was inaugurated in June 2019 at Shanghai Stock Exchange. It is designed to support companies in the high-tech and strategic emerging sectors. 

CPO Falls Sharply Below RM4000, RHB Bearish On Sector

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Crude palm oil futures (FCPO) experienced a sharp decline yesterday, falling RM50 to close at RM3,990 as downward momentum strengthened below the psychological RM4,000 level, according to RHB Research.

The commodity opened the session at RM4,067 and hit an intraday high of RM4,072 before plunging to a low of RM3,987. It ultimately closed at MYR3,990, forming a strong bearish Marubozu candlestick pattern, signaling continued selling pressure.

RHB noted that the market is approaching key support at RM3,900, with further downside potential toward RM3,830 if the current negative momentum persists. Technical indicators, including the Relative Strength Index (RSI), are trending lower, reinforcing the bearish sentiment in the market.

Given the ongoing downtrend, RHB has advised traders to maintain short positions initiated on 23 September 2025 at RM4,343. Stop-loss levels are suggested at MYR4,180 to manage trading risks. Immediate support levels are identified at RM3,900 and RM3,830, while nearby resistance levels are at RM4,100 and RM4,180.

“Overall, the market remains in a bearish trend, and we continue to maintain a negative trading bias for FCPO,” RHB said.

Avillion Appoints Former Accountant General Datuk Yacob As Director

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Avillion Berhad has announced the appointment of Datuk Dr. Yacob Bin Mustafa as an Independent and Non-Executive Director, effective 16 January 2026.

Datuk Dr. Yacob, 63, brings extensive experience in Malaysia’s public finance sector, having served as the Accountant General of Malaysia until his retirement in August 2023. Beginning his career in 1987, he held key roles including Director of the Central Operation & Agency Services Division and Deputy Accountant General (Operation), culminating in his tenure as the nation’s top financial officer from October 2019.

During his time as Accountant General, Datuk Dr. Yacob played a pivotal role in enhancing Malaysia’s financial management systems and public sector governance, working under multiple finance ministers and shaping national fiscal strategy.

Beyond government service, he holds numerous board and committee positions. He has served on the Audit Committee of Perbadanan Insurans Deposit Malaysia (PIDM) since 2019 and on the Finance & Investment Committee of Majlis Agama Islam Wilayah Persekutuan (MAIWP) since 2022. In 2023, he joined the Audit Committee of the Razak School of Government and currently chairs Hong Seng Consolidated Berhad, where he also serves as Deputy Chairman since November 2025.

Datuk Dr. Yacob’s credentials include a PhD in Economics and an MBA from Universiti Kebangsaan Malaysia, and a Degree in Accounting from Universiti Malaya. He is also recognized as a C.A(M), FCPA (AUST) and was inducted into the Global Accounting Hall of Fame in 2018.

Avillion said his appointment strengthens the board’s expertise in financial governance and strategic oversight, reflecting the company’s commitment to robust corporate governance and sound financial management.

Vestland Bags RM290 Million SOHO And SOVO Construction Contract In KL

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Vestland Berhad announced that its wholly-owned subsidiary has secured a RM290 million contract from Sg. Besi Construction Sdn Bhd for the construction of high-rise office developments in Kuala Lumpur.

The contract covers the superstructure, external works, and mechanical and electrical systems for one 69-storey Small Office Home Office (SOHO) block, one 78-storey Small Office Versatile Office (SOVO) block, and related facilities located in Jalan Ampang. Construction is scheduled to commence immediately, with completion targeted for 9 June 2029.

The scope of work includes design, approvals, construction, completion, and commissioning of all structural, external, and M&E works. Vestland said the contract is expected to contribute positively to the earnings and net assets of the group over the contract period, assuming no significant delays.

XL Axiata Set To Gain From Shift In Indonesia’s Telco Space

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Maybank Investment Bank Group (Maybank IBG) has maintained its HOLD rating on PT XL Axiata Tbk (EXCL), raising its target price to IDR4,100 following improvements in network performance and pricing strategy.

In its research note, Maybank IBG highlighted that EXCL’s network speed has shown significant gains, reaching up to 100 Mbps in available areas across Flores to East Java based on on-the-ground checks. The telco has also improved pricing for consumers, offering a new SIM card at IDR35,000 for 3GB and introducing a daily package suitable for Indonesian users.

“EXCL now has a solid foundation for long-term expansion,” Maybank IBG said, noting that the higher target price reflects the company’s network upgrade and a broader industry shift from price competition to quality-focused services. The new target price is based on a 6.0x EV/EBITDA multiple for FY26E, translating to 2.6x price-to-book value.

4Q25E Forecasts
Maybank IBG projects 4Q25 revenue of IDR12 trillion, up 33% year-on-year and 4.6% quarter-on-quarter, driven by mobile data revenue of IDR10.8 trillion (+29% YoY, +3% QoQ). Data traffic is expected to reach 4,650 petabytes, a 70% YoY increase, with a data yield of IDR2,323 per GB. EBITDA is forecast at IDR4.9 trillion, representing a 40.6% margin, while a net loss of IDR1.1 trillion is expected for 4Q25. For FY25, Maybank IBG projects a net loss of IDR3.7 trillion, reflecting lower-end revenue targets and network integration costs.

Network Transformation and Market Strategy
EXCL’s network transformation is a key positive, with median download speeds of 45 Mbps, and peaks of 97 Mbps in Flores. Its spectrum is considered adequate for 5G rollout. The company currently operates approximately 160,000 4G BTS, translating to about 498 subscribers per BTS, highlighting gradual but steady coverage expansion.

Maybank IBG noted that EXCL’s marketing strategy, including daily data packages, is attractive to Indonesian consumers. The report emphasised that the main challenge for EXCL remains expanding its coverage area, but the network improvements provide a strong base for growth.

“Competition in the Indonesian telecom sector is pivoting from price to quality,” Maybank IBG said, maintaining that EXCL is well-positioned to benefit from this shift, while network expansion and integration costs may continue to pressure short-term earnings.

The HOLD rating is retained, with the new fair value set at IDR4,100, reflecting a 22% discount to the ASEAN average EV/EBITDA of 7.7x for FY26E.

MN Holdings Secures RM122 Million Substation Contracts For Data Centre Projects

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MN Holdings Berhad announced that its wholly-owned subsidiary secured four Letters of Appointment (LOAs) worth a total of RM122.7 million. The contracts cover the supply and installation of substation equipment for multiple data centre projects in Central and Southern Peninsular Malaysia.

The contracts were awarded by a prominent international customer specialising in engineering, planning, design, and construction of information technology facilities. The identity of the client remains confidential due to non-disclosure agreements.

Under the contracts, the company will be responsible for the supply, delivery, installation, and commissioning of power transformers and other related substation equipment and systems. The projects are scheduled to commence in January 2026, with expected completion by June 2027.

Sea Ltd Down 37% Since 2025 Peak, Is it A Good Entry Point?

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Sea Ltd’s recent share price decline has created what Maybank Investment Bank Group (Maybank IBG) describes as an “attractive entry opportunity,” despite market concerns over seller commissions in Brazil and the lack of near-term catalysts ahead of 2026 guidance.

In a note following the stock’s 13% drop over the past six trading sessions, Maybank IBG said the pullback has erased all early-2026 gains. The firm maintained its BUY rating and sum-of-the-parts (SOTP)-based target price of USD156, noting that the recent weakness largely prices in perceived risks in Brazil and margin pressures.

Investor Concerns
According to Maybank IBG, investor discussions have focused on three key areas:

  1. Brazil Seller Commissions: Shopee’s recent increase in seller commissions, particularly for low-ticket items where it has historically been strong, has raised questions. Competitors have not implemented similar hikes, prompting concerns that gross merchandise volume (GMV) growth could slow amid intense local competition.
  2. 2026 Margin Guidance: Investors are awaiting formal guidance for 2026, as management’s earlier cautious commentary on margin expansion has fueled speculation that margins could remain flat compared to 2025. Buy-side expectations appear below sell-side projections of approximately 1.0% adjusted EBITDA-to-GMV. Maybank IBG expects Shopee GMV growth of 20% in 2026 and a 30-basis-point margin expansion to 1%, supported by stable ASEAN markets and easing competitive pressures in Taiwan.
  3. Share Buyback Execution: While Sea’s USD1 billion share buyback was welcomed, investors are seeking clarity on the scale and pace of execution.

Positive Factors
Maybank IBG noted that, in contrast to early 2025, Shopee’s seller take-rate adjustments across ASEAN have been modest and largely within expectations. Easing competitive pressures in Taiwan, following Coupang’s cyber incident and management changes, also provide an incremental positive.

“With the stock now 37% below its 2025 peak, Brazil and margin-related risks appear largely priced in,” the research house said. “We view the recent pullback as an attractive entry point for investors looking to gain exposure to Sea Ltd’s growth trajectory.”

The report highlights Maybank IBG’s confidence in stable ASEAN dynamics, a recovery in Taiwan, and continued growth for Shopee as factors supporting earnings upside in 2026, despite investor concerns over specific market developments.