DBS Insights Direct

🤖 China Home Appliance Sector: Scaling smart and going global China’s leading home appliance companies continue to reap the benefits of government stimuli and resilient overseas demand, all while rising urbanisation drives up household spending domestically. The industry is projected to grow at a 6.7% CAGR (2025-2030) to approximately RMB1.4tn by 2030. Meanwhile, high demand for smart products and green/low-carbon appliances is also pushing growth ♻️ Given this environment, we re-initiate coverage on two top picks based on their scale, strong R&D, and expanding global reach. Find out who they are.

Morning update ⏰ 🚙 Japan Automakers: Tariff cuts clear the road Trump has approved the reduction of US duties on car imports from Japan, from 27.5% to 15%. The tariff cuts bolster the outlook for Japan’s automakers, most of whom had trimmed their full-year guidances due to trade and currency pressures. Which two names stand out? https://go.dbs.com/4pn6gSu 🫢 Suntec REIT: Earnings boost ahead? It has received a favourable tax ruling in Australia, which translates to around SGD8mn in withholding tax savings for FY25, an estimated 4% upside to FY25 earnings. What is the potential impact on dividend yield? https://go.dbs.com/3JGeTHs 👀 Watching US payrolls and political events Markets will watch US non-farm payrolls tonight, and another weak read will solidify expectations of a Fed rate cut this month. The USD may slip broadly as markets price in a more dovish Fed. Political risks are also adding to noise to global markets. How are currency pairs with the USD holding up? https://go.dbs.com/4m2uBtR

🛒 Beyond e-commerce Over the past year, gaming has edged out e-commerce as Sea's main share price driver, with loan-book growth also gaining traction. Gaming stands to benefit from AI-driven features and cost savings, while the self-developed "Free City" could deliver positive surprises in FY26F. Fintech profitability is also on the rise, becoming Sea's fastest growing segment 🙌 Against the backdrop of higher growth and valuation of the fintech and gaming segments, how has our target price changed?

Morning update ⏰ 🌅 Regional REITs: Rate cuts on the horizon, what's next? Fed chair Powell opened the door to a rate cut in September 2025. Major REIT benchmarks saw solid gains of 2.3-4.3% in August, setting up for a stronger 2H25 as interest rate turns more conducive. S-REITs remain inexpensive, while recent price retreats in H-REITs and C-REITs offer opportunities to accumulate. Which sectors do we prefer? https://go.dbs.com/4pobwp1 😨 BOC Hong Kong performing despite volatility 1H25 net profit rose 10.5% y/y to HKD22.15bn, exceeding expectations. NIM and NII were stable despite HIBOR volatility, supported by solid asset quality and loan growth. We expect around 2.3% earnings CAGR for FY24-27F, with higher fee income assumptions. Find out our new target price. https://go.dbs.com/3JMVapq 🙇‍♂️ Stay alert to US labour market weakness The DXY fell by 0.3% to 98.1. The Fed’s Beige Book, which reported little or no change in economic activity across most of the 12 Fed districts, reflected the labour market's softness. The Beige Book suggested that the anticipated 25 bps cut at the 17 September FOMC meeting could mark the start of a sustained easing cycle. What developments are we watching? https://go.dbs.com/41Annpy

🏋️ Resilient outlook ahead We maintain our STI year-end target of 4,430, with small-mid caps expected to outperform. Singapore equities stand out as a safe haven due to the city-state's low tariff exposure, highly skilled workforce, supportive policies, and political stability. Alongside attractive yields, these factors can help weather regional and US risks ☂️ Find out what bright spots we see and how to position.

Morning update ⏰ ☄️ BYD Electronic: Outlook boosted by Apple, EV & AI 2Q25 net profit up 20% y/y – above consensus but below our expectations. Earnings forecasts for FY25F/26F were trimmed, though management guides for a stronger 2H on iPhone seasonality, auto systems and AI exposure. Is this stock still a BUY? https://go.dbs.com/4p233ay 👑 Zijin Mining: A golden harvest Consecutive record-high earnings in 1H25, backed by strong sales and elevated metal prices, underpin enhanced earnings growth outlook. Gold is expected to be the biggest contributor to future growth, supported by increased production and a promising outlook for prices. What other catalysts catalysts do we see driving earnings growth? https://go.dbs.com/4g5j8IF

👍 Improving business prospects   China/Hong Kong stocks saw more beats and misses during 1H25 results season compared to FY24. Against this mixed backdrop, our analysts have made modest cuts to consensus earnings for HK stocks, while raising forecasts for A shares. However, more company managements have expressed optimism on their business outlook 🤗   Alongside early signs of an economic pickup after the launch of the Anti-Involution campaign, this could ease fundamental concerns to some extent and support equity market sentiment. Which sectors do we prefer?

Morning update ⏰ 🌅 Alibaba: Management sets solid outlook for CMR and cloud Revenue rose 2% y/y to RMB248bn, 2% below consensus, as higher food delivery subsidies were partially netted off against revenue. Management expects cloud revenue growth to accelerate on robust AI demand, and remains confident on customer management revenue (CMR) growth despite a high base. Have we raised our target price? https://go.dbs.com/47oyMwu 🏥 IHH Healthcare: Out-of-hospital strategy boosts margins 2Q25 results were broadly in line despite currency headwinds. IHH’s shift from inpatient to day care eases payer pressure, preserves margins, and strengthens ROE. Cost efficiencies and improved case mix help mitigate insurer pressures. Have we revised our target price? https://go.dbs.com/461RQ19 🚘 ComfortDelGro: Taking full control of CityCab CDG will acquire the remaining 46.5% stake in CityCab from ST Engineering Land Systems for SGD116mn, taking ownership to 100%. This positions the company to execute its point-to-point strategy more effectively in Singapore. We expect near-term share price softness given the optics of investing in a shrinking business. Is this stock still a BUY? https://go.dbs.com/3I2c82u

🚨 More alert to USD weakness Following the US Dollar Index’s 3.2% upward correction in July, markets have begun to reassess the USD’s downtrend. However, given the event risks ahead, we cannot lower our guard on the downside risks facing the USD for the rest of 2025. The USD is the most overvalued and is vulnerable to impending Fed rate cuts ✂️ We anticipate the USD’s depreciation in 2H 2025 should continue, albeit at a more moderate pace. Conversely, the JPY remains the most undervalued, a disparity that could be addressed by narrowing rate differentials. Against this backdrop, discover our FX strategic trade ideas.