JPMorgan has issued updated coverage on key ASEAN energy, Thai financial and healthcare stocks, reflecting a combination of sector caution and selective optimism.
Energy and Utilities
The firm has reassumed coverage of ASEAN energy and utilities with a conservative approach, anticipating that easing crude balances in 2027 and uncertain near-term geopolitical risks—such as those around the Strait of Hormuz—will limit upside.
- PCHEM (Malaysia): JPMorgan rates PCHEM “Underweight” with a December 2027 target price of RM3.60 per share. The reassessment follows a decline in polyethylene/polypropylene and urea prices, plus operational challenges offsetting the company’s feedstock advantage. JPMorgan’s 2027 EBITDA and EPS projections fall 20% and 40% below consensus, respectively.
- PTG (Malaysia): Coverage resumes at “Neutral” with a target price of RM17.30 per share for December 2027. Stability is expected due to its regulated structure and dividend yield near 4%, while growth is restrained by high capital spending and a price-to-book ratio of 2.2x.
- BANPU (Thailand): Banpu is now rated “Neutral” with a target of THB14.70 per share by December 2027. Analysts cite the company’s improved structure post-amalgamation but see little upside for coal and gas prices, resulting in flat EBITDA forecasts for 2026-27.
- ITMG (Indonesia): Banpu’s downgrade extends to Indo Tambangraya Megah (ITMG), now rated “Neutral” from “Overweight” due to expectations of subdued unit profitability into 2027.
Healthcare
- Bangkok Dusit Medical Services: Despite a 2Q26 earnings miss leading to a 2-3% reduction in FY26/27 EPS forecasts, the price target holds steady at Bt24. JPMorgan maintains an “Overweight” rating.
- Bumrungrad Hospital: Minor adjustments lower FY26/27 EPS forecasts by 1-2% after a projected rise in dividend payout ratio from 70% to 90%. However, this change boosts the prospective dividend yield to about 5%. The price target stands at Bt240, with an “Overweight” stance reaffirmed.
Thai Financials
JPMorgan points to a promising multi-year outperformance for Thailand’s financial sector, driven by policy changes and stronger nominal GDP growth projections (4-5% in 2026/27 versus 3% over the last decade). Higher credit growth is anticipated, with tighter past underwriting helping limit further asset quality deterioration.
- Top Picks: KBank is recommended as a core holding, with a re-rating expected. Bangkok Bank (BBL) is selected as a tactical option given low valuations and strong corporate lending. Krung Thai Bank (KTB) is viewed as high-quality but expensive, while SCB is considered at risk due to ongoing asset quality concerns in its AutoX portfolio.
- Non-Bank Financial Companies: JPMorgan maintains “Overweight” ratings on all four NBFCs under coverage: MTC, SAWAD, TIDLOR, and KTC.
