*? Thailand Strategy: Time for a reload*

On a y/y basis, Thai GDP showed continued recovery, from 1.6% in 1Q24 to 2.3% in 2Q24, amidst improving exports and continued support from private consumption and tourism. We expect GDP to continue recovering in 2H24 with rising contribution from public spending and exports. Clearer and more stable politics as well as stimulus measures should also be key market drivers.

We have identified five key investment themes and eight top picks, two of which are SDRs available to trade on SGX. Find out who they are.

Morning update ⏰**

?️Oil prices plunge by 8% as supply fears add to growing demand concerns**

Oil prices take a dip to the low US$70s, on the back of speculation about OPEC+ sticking to production increase plans from October. Demand concerns have been hovering for a while now, especially around China. Upstream plays will likely see a dip in sentiment in the near term. Who are we still positive on?

https://go.dbs.com/3XdQFHu

? China Brokers: Proposed merger between GTJA and Haitong

Both firms have entered into a legally binding merger agreement. The merger would result in the largest China broker by assets, totalling RMB1.62tn, with significant potential for cost synergies. This signals the possibility of further consolidation among the top-tier brokers. Who might be next?

https://go.dbs.com/3ZbYakQ

? NIO Inc: 2Q24 results exceed expectations

Revenue surged 99% y/y to Rmb17.4bn, largely driven by a 144% increase in vehicle sales, beating management's target. The company expects to commence deliveries of its ONVO L60 on 19 Sep, its first model targeting the mid-market segment. Sales are looking optimistic, with pre-orders exceeding expectations. What other catalysts do we see?

https://go.dbs.com/3ThiX2C

Morning Update ⏰**

☀️ Sunny Optical: Optimism over recovery of global smartphone end-market**
The company revised its 2024 global smartphone sales growth forecast for 2024 from 1.8% to 3.5% y/y, expecting further optimisation in its product mix. We anticipate short-term share price support, as management is more optimistic about the recovery of the smartphone end-market, alongside further penetration into the iPhone value chain. Is the stock a BUY?

https://go.dbs.com/45x4C7d 
*? Singtel: Partners Telekom Malaysia for data center*

Singtel is partnering Telekom Malaysia to build a 64MW AI-ready data center campus in Malaysia, expandable to 200MW. This high-power density campus can host cloud hyperscalers and GPU-as-a-Service providers, leveraging on Malaysia's renewable energy sources and strategic location near subsea cable links to support growing data demands. Is this positive for Singtel?

https://go.dbs.com/3VNX78E

Morning Update ⏰**

? Seatrium: Sentiment hit, impact limited**
Seatrium faces a joint MAS and CAD investigation relating to ‘Operation Car Wash’. The company has entered a deferred prosecution agreement with the authorities, with a possible USD57mn penalty already provisioned in its FY23 results. Where do we see support for the share price? 

https://go.dbs.com/3XtsdUi
*? Thai Beverage: Countering higher alcohol taxes in Vietnam*
The Vietnam government plans to increase special consumption tax from current 65% to 100% by 2030. ThaiBev subsidiary Sabeco is the market leader in Vietnam's mainstream beer market, and could be disproportionately affected by the upcoming increase. Despite these concerns, we believe Sabeco's long-term prospects remain intact. Find out why. 

https://go.dbs.com/3VMvQDu 

? Global Auto: Could EU-China tariff fears be overblown?
Fears of Chinese tariff retaliation have caused a sell-off in EU OEM shares. However, due to significant localisation, the impact on exports to China is estimated to be less than 10%. Current valuations present a buying opportunity, with positive catalysts ahead. Which stocks do we like?

https://go.dbs.com/3xoyPIV

*? China taking centre stage on semiconductors
Despite concerns over geopolitical uncertainties and slowing growth, China is the largest individual market for semiconductor sales globally, accounting for around 30% of global sales. Its self-sufficiency goal has also led to lower integarted circuit imports as domestic players grow, and self-reliance grew from 15% to 20% in recent years. We expect mature node-focused foundries to benefit from the accelerating localisation trend ?*

Meanwhile, the resurgence in global consumer electronics driven by AI-enhanced smartphones, foldable smartphones, and AI PCs should benefit selected global names. Find out our top Chinese and global stock picks.

*? Delayed rate cuts a positive for Singapore banks?

Our economists have recently adjusted projections for the number of rate cuts this year from 3-5 to 2, which could be a positive for banks. With ample liquidity and weak loan demand, there's room for banks to cut deposit rates, potentially boosting net interest income. Meanwhile, wealth management remains a key driver of non-interest income growth ?*

One name stands out for its strong earnings momentum. Find out who it is.

Morning update ⏰**

✋ iFast Corporation: Strong 1Q24 results halts a 23% share price slide**
iFast’s ePension contribution was up 59.4%, powering a strong 1Q with net profit surging 387% y-o-y. Assets under administration hit a record high of $21bn. Price action and positive 1Q results suggest 23% correction has halted. Find out our revised target price for this stock and the key technical levels to watch.

https://go.dbs.com/49TTjq0

? USD Rates: Overheating worries
The miss in US 1Q24 GDP growth masks underlying economic strength with key drags from inventories and net exports which can be attributed to firm domestic demand. We think that market participants are starting to take the no-landing view more seriously. How will this impact the 2Y and 10Y yields?

https://go.dbs.com/4bclCRH

? Frasers Centrepoint Trust: Maintaining an A+ scorecard
FCT’s 1H24 dividend per unit at 6.022 cents surpassed our estimate, supported by strong tenant sales and positive lease reversions at 7.5%, particularly at NEX mall. What are the other key datapoints and is this stock still a BUY?

https://go.dbs.com/4aR4WQ4

*? Liquid gold trading at a discount

Breweries faced challenges in 2023 due to loss of business in Russia, macroeconomic headwinds, and poor weather conditions. However, the outlook for 2024 is more positive, with expectations of volume rebound in Europe, continued premiumisation in China, and strong macroeconomic growth in India ?*

The sector is trading at a discount to the broader consumer staples sector despite better earnings growth prospects. Find out our top picks among global breweries.