The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0253 GMT - Hanwha Systems' recent sale of most of its stake in a U.S. shipyard could have a negative impact of 3.5 trillion won on its valuation, Nomura's Eon Hwang says. The analyst lowers his 2027 revenue forecast for the South Korean defense company by 18%, citing the reduction in its stake in Hanwha Philly Shipyard to 5.6% from 60%. Hwang also remains cautious about the limited visibility into the execution of a recent preliminary term-sheet agreement between the Korean military-communications-and-surveillance-systems developer and the UAE to jointly develop air-defense systems. Nomura downgrades its rating on Hanwha Systems to reduce from neutral and trims its target price to 60,000 won from 61,000 won. Shares are 2% lower at 78,400 won. (kwanwoo.jun@wsj.com)
0244 GMT - Chow Tai Fook Jewellery's fixed-price products are likely to drive revenue growth in the coming years, Morningstar's Jeff Zhang says in a note. Fixed-price gold products are sold at a set price that remains unaffected by fluctuations in the international gold market. Chow Tai Fook's fixed-price product revenue could be boosted by strong craftsmanship and gradually rising gold prices, the analyst says. He estimates these factors could raise Chow Tai Fook's fixed-price product revenue mix to 45% by FY 2031. While a decline in gold prices could pressure the company's earnings, he says a stronger cost discipline should provide a buffer. Morningstar starts its coverage of Chow Tai Fook with a fair-value estimate of 14.50 Hong Kong dollars. Shares fall 1.0% to HK$10.94.(megan.cheah@wsj.com)
0235 GMT - Ramelius Resources' FY 2027 and 2028 production outlook is moderately below expectations, says Euroz Hartleys. However, that is offset by lower-than-expected operating costs "and an exceptional forward outlook in FY29 and FY30," the broker says. Rising free cash flow and falling capital expenditure should bolster capacity for additional dividends and share buybacks, says Euroz Hartleys. "We continue to be confident that RMS' superior cash flow outlook against its peers will result in a share price re-rate over FY27 as investors start to look toward future cashflows," it says. The broker keeps a buy recommendation and A$5.04/share price target. The stock is up 6.4% at A$3.81. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0228 GMT - Cooper prices are higher in early Asia trade, supported by expectations of tightening supply and improving demand, Everbright Securities analysts write in a note. Domestic copper inventories remain low, while global copper mine supply remains constrained, they add. Spot treatment charges have also fallen to fresh lows, pointing to continued tightness in the concentrate market, they say. Investors are monitoring U.S. copper tariff policy and its potential impact on global trade flows, they add. The three-month LME copper contract is up 0.1% at $14,540.50 a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0221 GMT - MA Moelis Australia wonders whether FireFly Metals investors will have the patience and risk appetite to hold the stock when it is "already reflecting much of the intrinsic value of the business." MA says it has high conviction in the company's Green Bay copper-gold project, which it thinks will be comfortably funded. But it would "like to see significantly more upside between our price target and where the equity is trading as a reward for both the duration and complication of bringing Green Bay back to life," it says. MA has a hold rating and a A$1.80/share target on FireFly. Shares are down 5.4% at A$1.6975. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0219 GMT - The impact of rising bond yields on Malaysian banks' debt investments remains manageable, says Maybank IB analyst Desmond Ch'ng in a note. Proactive treasury management could help cushion potential mark-to-market losses, while banks' strong capital positions should be more than sufficient to absorb any losses from debt securities measured at fair value through other comprehensive income, he reckons. The banks' capital management and dividend plans are expected to remain intact, with average dividend yields of about 5.6% in 2026, he adds. Maybank maintains a neutral rating on Malaysia's banking sector, and rates Public Bank, Hong Leong Bank, AMMB, Alliance Bank Malaysia and Hong Leong Financial at buy. (yingxian.wong@wsj.com)
0217 GMT - Malaysia's near-term inflation pressures are expected to pick up as higher oil prices feed through to fuel-related costs, but headline inflation is likely to remain around 1.9%-2.0% in September, CIMB analysts Chew Khai Yen and Michelle Chia say in a note. The broader inflation outlook could remain benign, with softer core inflation pointing to contained underlying price pressures, they add. This supports CIMB's view that Bank Negara Malaysia will maintain the overnight policy rate at 2.75% at its November monetary policy meeting. (yingxian.wong@wsj.com)
0200 GMT - Malaysia's consumer sector is facing renewed cost pressures and limited earnings catalysts, which could cap further gains in valuations, Affin Hwang IB analyst Peggie Wong Pei Chi says in a note. Key commodity prices have risen on El Nino-related supply risks, while the Malaysian ringgit's earlier appreciation has eased, reducing the cost cushion for companies, she says. Underlying consumer demand could remain resilient, supported by fuel subsidy and likely higher cash assistance under Budget 2027, she reckons. However, higher raw-material and labor costs, alongside uncertainty over the service tax framework, could weigh on profit margins into 2027, she adds. Affin Hwang downgrades Malaysian consumer sector's rating to neutral from overweight, pegs 99 Speed Mart Retail as its preferred exposure.(yingxian.wong@wsj.com)
0150 GMT - Tenaga Nasional shares appear oversold after falling 12% from their recent high, with earnings expected to strengthen in 2H, RHB analyst Max Koh says in a note. As the government is raising the threshold for fuel surcharges and other electricity charges to 800kWh a month from 600kWh from September to December, the utility will need to absorb 120 million ringgit-150 million ringgit in additional fuel costs, he notes. The cost represents about 2%-3% of their expected 2026 earnings estimate and could have limited impact on forecasts, he says. Earnings could get a boost from a lower effective tax rate in 4Q, which may offset the higher subsidy costs, he reckons. RHB maintains a buy rating on Tenaga and keeps its target price at 16.50 ringgit. Shares are 0.6% lower at 12.96 ringgit. (yingxian.wong@wsj.com)
0144 GMT - Singapore property developers' valuations remain attractive to UOB Kay Hian's Lock Mun Yee, who notes that the sector trades below its average price-to-book ratios. These valuations appear inexpensive to her as the companies' net-asset values are likely to be supported by firm residential prices and the robust outlook for Singapore commercial and retail properties in the city-state, she says in a note. The analyst expects 8,000-9,000 new home sales in 2026, while prices could increase 2.0%-3.0%. Buying sentiment is likely to be shaped by factors like developers' pricing strategy and location considerations amid rising interest rates, she adds. UOB Kay Hian maintains its overweight rating on Singapore developers. Its sector picks include City Developments.(megan.cheah@wsj.com)
0137 GMT - Pantoro Gold's output rate puts it on track to produce 21,000-22,000 oz of gold in 1Q FY 2027, says MA Moelis Australia. That would be a marked improvement from the two quarters immediately preceding, when it produced roughly 17,000-18,000 oz each time, it says. As of Sept. 19, Pantoro produced 19,130 oz--in line with MA's forecast for the entire quarter. "Production so far suggests the company is trending well towards its guidance--albeit it remains early in the year," says MA. Pantoro has forecast FY 2027 gold output of 90,000-105,000 oz, and says only 40%-45% of annual output will happen in 1H. MA has a buy rating and target price of 3.65 Australian dollars a share on the miner. The stock is up 3.3% at A$2.86. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0132 GMT - Tenaga Nasional is expected to bear an additional 120 million ringgit-150 million ringgit in electricity costs from September to December, TA Securities analyst Hafriz Hezry says in a note. The costs stem from the government's decision to raise the threshold for fuel surcharges and other electricity charges to 800kWh a month from 600kWh during the three-month period. The higher costs could reduce Tenaga's 2026 expected net profit by about 2.0%-2.5%, while the impact beyond December remains unclear, he says. He expects regulatory risks to weigh on Tenaga's near-term share performance, particularly if fuel prices remain elevated into 2027. TA Securities downgrades Tenaga's rating to hold from buy, cuts target price to 13.80 ringgit from 18.00 ringgit. Shares are 0.9% lower at 12.92 ringgit.
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