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Southeast Asian Equities 2025 Outlook

Sufianti Sufianti
Team: Strategy
BI Equity Strategist

1. 2025 Outlook: Southeast Asian Equities (MXFMASN Index)

(Bloomberg Intelligence) -- Table of Contents

Southeast Asian equities may Key Topics Thematics
remain a bright spot with What to Watch For NEW Quality Tops Factor Scorecard NEW
support from robust economic Solid Economic Outlook IPO Activities May Pick Up in 2025
performance, solid Fundamentals Still Hold Allure NEW

FDI Shows No Signs of Fatigue

fundamentals, undemanding
Light Foreign Positioning
valuations and strong FDI
Risk: Dollar, Foreign Flows NEW

momentum. The region's

outsized domestic focus also serves as a shield for corporate earnings against external shocks.
Light positioning by foreign funds signals ample room for higher allocations. Yet Fed rate
uncertainty and simmering geopolitical tensions may leave foreign sentiment struggling for
traction as currency risks surge.

Quality has been the most defensive strategy over the past four quarters and may continue to
dominate BI's factor model given its discounted valuation and strong price trend. Southeast Asia's
IPO activities could pick up next year but 2023's record may be tough to beat if economic
challenges and poor after-market returns persist. (12/23/24)

Key Topics

What to Watch For

2. Three Keys for 2025: Southeast Asian Equities

(12/23/24)

Key Drivers

Solid Economic Outlook

SE Asia May Remain a Growth Stock Hotbed on Economic Strength

Southeast Asia may remain a bright spot for growth stocks, with a strong, domestic economic focus
serving as a corporate earnings shield against external shocks. Companies with robust,

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compounded annual sales and profit growth are plenty, with consistent growers better-positioned
to weather unknowns, as the calculation can obscure year-to-year choppiness. (10/22/24)

3. SE Asia Among World's Fastest-Growing Economies

Southeast Asian markets have remained steadfastly resilient, with a credible economic
performance track record. Barring the Covid-19 outbreak and its 2020-21 recovery period, GDP
growth has consistently exceeded 5% for three of the region's five markets since 2017. Consensus
expects the economies of the Philippines and Vietnam to grow about 6% this year, among the
fastest globally, just behind the forecast for India at 7%. Malaysia and Indonesia are expected to
achieve 5% growth while the projection for Thailand is the lowest, at 2.5%.

The region's quarterly economic performance has shown resilience this year. Growth rates for 2Q in
almost all markets -- excluding Indonesia -- were the fastest over the past four quarters.
Indonesia's quarterly GDP growth remains stable at about 5%. (10/22/24)

Global Markets Annual GDP Growth, ECFC <GO>

4. Corporate Earnings Less Vulnerable to External Shocks

Corporate earnings in Southeast Asia's emerging markets may be less directly impacted by
external conditions due to its outsized domestic focus despite its global trade exposure. Our
analysis of geographical exposure of local index constituents suggests most markets in the region
derive 80% or more of their revenue from domestically oriented operations. Malaysian and Thai
indexes reflect higher share of overseas sales, but are still notably lower than export-driven
markets such as Taiwan and South Korea.

Revenue exposure is bottom up, aggregated with free-float adjustment for local index members,
excluding financials. Data for the geographical breakdown of individual stocks' revenue is sourced
via FA GEO <GO> on the Bloomberg terminal. (10/22/24)

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marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
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SE Asia: Domestic Sales Exposure (Ex-Fin, 2023)

5. High-Growth Stocks Abound in Southeast Asia

Southeast Asia's robust economic performance and strong domestic focus make it conducive to
high-growth companies. More than 200 firms have achieved 20% or greater average annual
revenue growth over the past five years. The number is even higher based on net income, with
more than 300 posting 20% or greater average annual profit growth. More than two-thirds of those
firms are relatively small, with less than $500 million in market capitalization.

Indonesia and Vietnam lead in numbers while the Philippines has the least, based on both metrics.
Most of Vietnam's high-growth stocks are concentrated in the financial and industrial sectors, while
Indonesia's distribution is broader. (10/22/24)

SE Asia Markets: Number of High-Growth Firms

6. Indonesia, Vietnam Set Pace for Consistent Growth

Heady average annual revenue and profit growth rates could mask choppiness, as the geometric
calculation excludes year-to-year volatility. Firms capable of steadier revenue and profit growth
could be better positioned to weather macroeconomic surprises. Around 81 companies have
increased revenue by at least 5% for five straight years, including during peak Covid in 2020. That
number is lower for comparable profit growth, at 27.

Allowing for one year of sales and profit growth below 5% nets an additional 55 and 21 stocks,
respectively. Indonesia and Vietnam are home to more consistent growers on both metrics.
(10/22/24)

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SE Asia Stocks With Consistent Growth by Market

Fundamentals Still Hold Allure

Valuation, Revisions Keep Philippines Atop SE Asia Scorecard

The Philippines' mix of strong revisions and low valuations keep it atop our equity scorecard, but
foreign sentiment remains weak as dollar-bound capital dodges volatility and geopolitical risk.
Vietnam returns as runner-up on its value-growth outlook. The latest sector scorecard shows a mix
of defensive and cyclical bias with communication services on top. (12/16/24)

7. Philippines Retains Top Spot, Vietnam Climbs

The Philippines retains its leadership in our latest Southeast Asian markets scorecard, boosted by
robust earnings revisions and historically low valuations. It also ranks high for fund flows, having
witnessed -- along with Malaysia -- the lowest foreign capital flight. Sturdy economic and earnings
growth coupled with undemanding valuations and relatively resilient currency put Vietnam back in
the No. 2 spot. Technical indicators still flash favorably for Thailand but the greenback's rally has
left it struggling, as its index returns are more sensitive to dollar swings.

Indonesia and Malaysia occupy the bottom echelon with at least three of the indicators reading
unfavorable. Earnings growth expectations for both markets fall at the lower end of the spectrum.
(12/16/24)

EFM Asean Equity Scorecard (December 2024)

8. Growth Is on Vietnam's Side, Revisions Not as Solid

Consensus expects the MSCI EFM Asean Index to post more than 20% year-over-year profit growth
over the next 12 months, with Vietnam setting the pace. Coupled with undemanding valuations,
Vietnam appears favorably positioned, with a forward price/earnings-to-growth (PEG) ratio of
0.26x, though revisions don't appear as robust. The strong growth is broad-based, with all sectors
in Vietnam expected to clock median earnings growth in the double digits. Thailand may also
deliver a strong rebound from a low base.

More than 60% of firms in the MSCI Philippines Index have witnessed upgrades to next year's
earnings over the past three months, solid enough to offset the market's middling growth. Growth

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estimates for Indonesia and Malaysia appear stable, but are falling on the lower end. (12/16/24)

MSCI EFM Asean: Growth and Revisions

9. Philippines' Multiples Close to Historical Trough

Despite robust fundamentals, weak performance has pushed the MSCI EFM Asean Index's valuation
notably below its long-term average, with a forward P/E of 13.6x. The discount pool has widened,
with 36% of equities trading at least one standard deviation below five-year average multiples vs.
28% three months earlier. MSCI Philippines remains deeply discounted, and appears to have the
most value given its copious supply of historically inexpensive equities.

Multiples for the MSCI Indonesia and Thailand indexes have slipped about 10% since early 2024,
making them appear modest relative to historical levels. Valuations for MSCI Malaysia and Thailand
have re-rated closer to their long-term averages. (12/16/24)

MSCI EFM Asean Index: Valuations vs. History

FDI Shows No Signs of Fatigue

AI, Digital Investments May Be Next Leg of SE Asia's FDI Growth

Growth of foreign direct investment in Southeast Asia could continue to outpace China during
global and regional supply-chain realignment. While flows have remained largely directed into
manufacturing, there's a surge of interest in services and digital industries. Malaysia has staged a
strong comeback while Vietnam has fallen victim to a high-base effect. (11/21/24)

10. SE Asia's FDI Growth Keeps Its Momentum

Foreign direct investment in Southeast Asia is continuing an upward trajectory with net inflows
reaching about $85 billion so far this year as companies reconfigure the global supply chain, in
contrast to the persistent contraction faced by China. According to data from relevant government
bodies, all Southeast Asian markets saw higher inflows over the past three quarters with Indonesia
leading in dollar value (Philippine data was for January-August). Vietnam's newly invested capital
from foreign sources only grew 11% year-on-year due to a high-base effect. Investments in

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Malaysia recovered strongly from a contraction in 2023. Indonesia's FDI saw stable expansion while
the Philippines recorded the lowest growth rate.

Click the "Excel" tab for details of inward FDI. (11/21/24)

FDI Momentum Continues in Southeast Asia

11. FDI Still Largely Channeled Into Manufacturing

Manufacturing remains the focus industry for inward FDI in Southeast Asia, except in Malaysia, as
supply-chain diversification by global players gains momentum. Investments in Philippine
manufacturing grew twofold in the first eight months of 2024, dwarfing other industries in the
country. Similarly, Vietnam saw two-thirds of its FDI channeled into manufacturing. Flows into
Thailand's electrical-appliances and electronics industry have abated slightly with the digital
industry posting the strongest growth. The services sector was the largest recipient of FDI in
Malaysia, led by information and communications. Basic metal manufacturing continued to receive
the largest inflows in Indonesia, followed by investments in logistics infrastructure and mining.

Click the "Excel" tab for breakdown details on inward FDI. (11/21/24)

Southeast Asian Markets: Inward FDI by Top Industries

12. Emerging AI, Data-Center Investment Is Hot Spot

While a large chunk of FDI continues to be directed at traditional sectors such as manufacturing,
Southeast Asia is emerging as a global hot spot for AI infrastructure. The region has become a
battleground for global tech giants and increasing AI-related investments may be the next key
driver of FDI momentum. Amazon, Google, Microsoft, Nvidia and Tencent are among companies
looking to expand their AI footprints in the region. Malaysia appears to be the preferred destination
among the five markets, followed by Indonesia and Thailand. The trio has attracted over $30 billion
of planned investments in AI-related projects, though some projects haven't yet started or even
been approved.
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Vietnam is fourth, but a new law opening its digital industry to 100% foreign ownership may help
attract interest. The Philippines lags. (11/21/24)

AI, Data-Center Related Foreign Investments

13. Singapore, China Top FDI Sources; US Less Prominent

Singapore, among the top contributors of FDI to China, has notably increased investments in
neighboring Southeast Asia countries, except for the Philippines. Indonesia remains the preferred
avenue for Singapore but FDI interest in Thailand and Vietnam has seen the largest jumps. China,
including Hong Kong, is a key FDI source for four of the five markets. The US plays a less prominent
role in emerging Southeast Asia -- most of its FDI is channeled into Singapore -- but surging
interest in AI-related investments could change that. The "China plus one" investment strategy of
many multinationals has also drawn overseas capital to the region from other places such as
Japan, South Korea and European countries.

Click the "Excel" tab for breakdown details of inward FDI. (11/21/24)

Southeast Asia: Inward FDI by Top Sources

14. Malaysia, Indonesia Have Higher Returns on FDI

Rates of return on inward FDI show the appeal of investing in Southeast Asian economies and could
help draw more interest to the region. Malaysia and Indonesia rank high in return on investment
relative to some of the world's top destinations for FDI, such as the US and Brazil. The Philippines'
return is in line with the global average, according to data presented in the World Investment
Report 2024 by UNCTAD. Return on direct investment in Thailand looks lower, while no FDI income
data are available for Vietnam.

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Return on FDI is calculated as the ratio of the current year's income from FDI to the average of FDI
positions in current and previous years. FDI income and positions are sourced from the
International Monetary Fund and UNCTAD databases. (11/21/24)

Rates of Return on Inward FDI

15. Five Nations Draw About $85 Billion in FDI So Far This Year

(11/21/24)

Southeast Asian Markets: Quarterly FDI

16. More Mentions of AI by Southeast Asian Firms

Our analysis of company documents, found at DS <GO>, searches for "artificial intelligence" or
"kecerdasan buatan" mentioned in filings and transcripts of firms in the Jakarta Stock Exchange
Composite Index, FTSE Bursa Malaysia EMAS Index, Philippines Stock Exchange All Shares Index,
SET Index and Vietnam Ho Chi Minh Stock Index. (11/21/24)

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Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP with all the global
marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice, and nothing herein shall constitute an offer of
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Mentions of AI in Company Filings, Transcripts

Light Foreign Positioning

Less SE Asia in Foreign Portfolios Means More Headroom for Rise

Light positioning by foreign funds in emerging Southeast Asian equities despite the region's robust
economic outlook could provide ample room for higher allocations when interest picks up.
Indonesia remains the preferred gateway, but there's also appetite for Vietnam. Asia-focused funds
have more active positions than their emerging-market peers. (11/07/24)

17. Foreign Funds' Positioning Still Light in SE Asia

Foreign funds' positioning in emerging Southeast Asian stocks remained light relative to other
major emerging markets in 3Q. The exposure, while rising, was only 5.5% compared to the 5.2%
weighting in the benchmark, based on average holdings of 50 actively managed emerging-market
funds we sampled. Fewer than half the funds had at least 100 basis points in active weightings. On
the flip side, light exposure suggests there's ample room for higher allocations eventually and
large, liquid stocks could be the primary beneficiaries.

Excluding China, foreign funds' average holdings in Southeast Asian equities were higher at 7.2%,
on a par with the region's weighting in the ex-China benchmark. Only one of the 10 sampled EM
ex-China funds held roughly 10% of its portfolio in Southeast Asian stocks. (11/07/24)

EM and EM Ex-China Funds' Positioning

18. Indonesia Leads as EM Funds Top Up SE Asia Exposure

Contributing Analysts Marvin M Chen (Strategy)

Fund managers finished 3Q with higher exposure to Southeast Asian stocks than at the outset,
outpacing the increase in the benchmark weight. Indonesia remains the preferred gateway for the
sampled managers, with average holdings reaching 2.7% vs. 1.6% weighting in the MSCI EM Index.
Holdings in Thai equities matched that of the index while the funds' average exposure to the
Philippines was higher than to Malaysia.

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marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice, and nothing herein shall constitute an offer of
financial instruments by BFLP, BLP or their affiliates.
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Vietnam stocks have been lightly featured in EM-focused active funds' portfolios despite its frontier
standing. Seven of 50 funds we sampled hold at least 1% of their portfolios in Vietnam equities. An
upgrade to emerging market status may woo more active managers seeking exposure without the
constraints of out-of-benchmark bets. (10/31/24)

EM Active Funds' Positioning in SE Asia Markets

19. Banks Remain Foreign Funds' Darlings in SE Asia

Contributing Analysts Marvin M Chen (Strategy)

Banks continue to be the crowd pleasers among Southeast Asian stocks, with investors drawn to
their generous liquidity. On aggregate, the sampled managers were overweight three of
Indonesia's big four banks -- Bank Rakyat Indonesia, Bank Central Asia and Bank Mandiri. Average
fund holdings in SCB X, Kasikornbank and Bangkok Bank are more than five times their weighting
in the MSCI EM index. Vietnam has yet to join the emerging market ranks, but Vietcombank,
Vietnam Dairy Products and Mobile World Investment have been featured in EM active funds'
portfolios.

The sampled managers also tapped into Southeast Asia's e-commerce boom via the out-of-
benchmark Sea Ltd. and Grab Holdings. Both are constituents of the MSCI Singapore Index.
(10/31/24)

Top 15 Aggregate Active Weights in SE Asia

Risk: Dollar, Foreign Flows

20. SE Asia's Capital Flight Continues as Dollar Climbs

Foreign withdrawals continued for Southeast Asian markets during November as the greenback
advanced to a one-year high on concerns over US President-elect Donald Trump's trade agenda
and fiscal plans, which some believe could stoke inflation and limit the scope of more Federal
Reserve rate cuts. Close to $3 billion in foreign capital poured out of the region's equities, with
Indonesia and Malaysia leading the way. Similar outflows were observed elsewhere.

Contrary to the weak sentiment on the region's equity markets, foreign direct investment (FDI)
momentum has yet to show signs of fatigue, with all markets seeing higher inflows over the past
three quarters. Flows have remained largely concentrated in manufacturing, but growing interest
in services and digital industries may be the next key driver of FDI growth. (12/06/24)

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SE Asia Markets: Monthly Net Foreign Equity Flows

21. Outflows May Sting Thailand, Philippines More

Persistent foreign capital flight may be especially excruciating for the Thailand and Philippines
stock exchanges relative to other emerging Southeast Asian markets, given their higher trade
participation from foreign investors. On average, foreign investors account for almost half their
value traded. Foreign trading makes up more than 40% of the monthly market turnover in
Indonesia while Malaysia's is slightly lower, at 37%.

Vietnam's market may be least impacted given foreign investors' relatively scant presence, with
about 11% contribution. This is evident in the Vietnam Ho Chi Minh Stock Index's more than 10%
gain despite foreign investors liquidating roughly $3.1 billion in equity holdings year to date.
(12/06/24)

Foreign Flows as % of Total Value Traded

22. Thailand's Dollar Sensitivity Highest in Southeast Asia

Contributing Analysts Kumar Gautam (Strategy)

The strong dollar generally doesn't bode well for Southeast Asian equities, with the dollar beta
signaling negative correlation for all five markets. Growing demand for the safe-haven currency
has also drawn foreign capital out of the region's stock markets. Thai equities appear to be most
vulnerable given the higher trade participation from foreign investors. Vietnam's dollar sensitivity
is relatively low, but its beta is now at a 15-year high.

We calculate an index's dollar beta as the cap-weighted average of stock-level betas, restricted to
index membership. An index's common beta calculation uses index-level historical returns, which
are influenced by past index members, giving our approach a forward look. Simple stock-level beta
estimates are noisy. Bayesian shrinkage helps reduce estimation errors. (12/16/24)

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Individual Markets Dollar Beta

Thematics

Quality Tops Factor Scorecard

Asean Factor Model Puts Quality at Top on Valuation, Price Trend

Contributing Analysts Kumar Gautam (Strategy)

Asean factor model's tailwind in the coming months may come from quality, given its discounted
valuation and strong price trend. The Sharpe ratio from allocating to size, value, momentum, low-
volatility and quality factors based on Asean factor model's output is around 0.83. Momentum,
ranked second in our model, shows low dispersion risk. (12/19/24)

23. Quality Reaches Top Position in Factor Scorecard

Contributing Analysts Kumar Gautam (Strategy)

Quality's weight has gradually increased in our Asean equity-factor model, reaching 38% in
November 2024 vs. 26% in December 2023. We rank factors based on their price trend and
valuation discount. Quality ranks high on both indicators as it's trading at a discount to historical
median and has a trailing-12-month return of around 9%. The model is slightly overweight
momentum (23%). It underweights value (17%) and low-volatility (19%) and assigns a negligible
weight (3%) to size factor. (12/19/24)

Asean Model's Factor Portfolio Weights

24. Valuation, Momentum Useful Factor Weighting Signal

Contributing Analysts Kumar Gautam (Strategy)

Some individual factors may show high premia, but they also experience large drawdowns often
exceeding a typical investor's risk tolerance. Consider, for example, momentum and low-volatility
factors. Their annualized premia over the past 15 years is 5.3% and 4.2%, but their maximum
drawdowns are to the tune of 30%. Equal weighting assets in a portfolio is a robust technique to
protect against volatility and improve risk-adjusted returns. In our backtest, a strategy that equal
weights factors every month has a Sharpe ratio of 0.78, beating all the individual factors. Our

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distributed locally by Bloomberg Finance LP ("BFLP") and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India,
Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP with all the global
marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice, and nothing herein shall constitute an offer of
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allocation model, which relies on valuation and momentum signals, seems to further improve the
outcome -- it has a Sharpe ratio of around 0.83. (12/19/24)

Factor Weighting Signals

Source: BQNT <GO>, Bloomberg Intelligence

25. Quality, Low-Volatility May Sustain Strong Performance

Momentum started the year on a strong note, but rising geopolitical tensions has favored
defensive factors such as low-volatility and quality in 2H. Momentum's weight in our Asean equity-
factor model has notably fallen to 23% in November as a result vs. 42% in June, while that of low-
volatility has almost doubled. Quality's weight has also increased. Persistent trade tensions and
expectations of slower US Federal Reserve easing could continue to fuel an appetite for low-
volatility and quality going into 2025.

Year-to-date, momentum is still the best-performing factor with the long-short strategy clocking a
17% return, but quality and low-volatility aren't that far behind with 15-16% gains. Quality has
been the most defensive strategy, recording a positive long-short return over the past four
quarters. (12/19/24)

Quarterly Factor Performance (2024)

26. Malaysia Tops Momentum, Philippines Lacks Quality

Contributing Analysts Kumar Gautam (Strategy)

Malaysian equities make up the largest proportion of Southeast Asia's high-momentum stocks as of
the latest rebalancing at 31.1%, followed by Thailand and Vietnam. It also dominates the low-
volatility basket, contributing more than half of the top 30%. In contrast, Indonesian equities only
account for 4.4% of the low-volatility basket, with only Bank Central Asia and Indofood Sukses
Makmur making the cut. The high-quality basket looks less concentrated with Vietnam, Indonesia
and Thailand having the same weighting, while Philippine equities have the smallest contribution.

Vietnam equities also rank high, based on value scores. The valuations, coupled with strong
earnings growth, have boosted Vietnam's ranking in our Asean equity scorecard. (12/19/24)

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Top 30% Baskets: Market Breakdown

27. Some Sector Overlap Between Quality, Low-Volatility

Contributing Analysts Kumar Gautam (Strategy)

The top sector distribution looks similar for the top 30% quality and low-volatility baskets, with
financials and consumer staples having the highest number of stocks. Yet underlying names differ,
with only two names overlapping for financials and four consumer staples firms ranking high,
based on the two factors. We also observe limited sector rotation in both; real estate stocks left the
high-quality ranks, while the materials sector was no longer part of low-volatility basket as of the
latest rebalancing.

Overall, the high-quality basket has a more diversified sector exposure with the top three sectors
accounting for less than 50% weight vs. 60% for low-volatility stocks. (12/19/24)

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and
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Top 30% in Low Volatility, Quality: Sector Makeup

IPO Activities May Pick Up in 2025

SE Asia IPO Hopefuls May See Better Days Ahead After Tepid 2024

Rate cut expectations, a robust economic outlook and solid FDI momentum could create a healthier
backdrop for Southeast Asia's IPOs next year, but 2023's record may be tough to beat if economic
challenges persist. IPO activity year-to-date is at a four-year low and has lacked any blockbuster
debuts. Malaysia took the lead as the region's hottest IPO market. (12/03/24)

28. Southeast Asia Stock Debuts Lag Behind 2023

Initial public offerings (IPOs) this year are unlikely to catch up to the success seen in 2023 as
sentiment toward Southeast Asian equity markets remains subdued. Year-to-date, the total number
of new listings has only reached 116, far below the 153 posted last year. Malaysia's stock
exchange has replaced Indonesia as the largest contributor, recording the highest number of IPOs
in 18 years. Listings in Indonesia dropped by half while IPO activity in Thailand has also slowed.
Stock exchanges in the Philippines and Vietnam continue to be the least active.

More than 100 IPO announcements in the region have been made year-to-date but 36 of them are
still pending. With a month left in the year, these potential listings could spill over into the new
year. (12/03/24)

Southeast Asia: Number of IPOs Since 2000

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29. Just a Handful of Large New Debuts in 2024

Unlike 2023, IPOs in Indonesia's stock exchange this year are smaller in size, with the largest debut
just reaching $275 million in market capitalization as of the listing date, which pales in comparison
with Amman Mineral Internasional's $800 million debut last year. Three quarters of the new
postings in Indonesia have less than $50 million in market capitalization. In contrast, Malaysia
welcomed its largest IPO since 2017 with 99 Speed Mart Retail Holdings commanding more than $3
billion in market capitalization upon listing.

Other larger-sized new offerings include Thai Credit Bank, Nam A Bank, OceanaGold Philippines,
Citicore Renewable Energy, Johor Plantations Group and DNSE Securities. (12/03/24)

SE Asia New Listings: Market Cap Range

30. Industrials, Consumers Dominate New Listings

Industrials, consumer staples and consumer discretionary have been the three most active sectors
in Southeast Asia's IPO market year-to-date, with more than 60 combined listings. Postings in the
technology sector fell to seven from 21 a year earlier while financials had a higher number of
offerings. Industrial firms trail in size with most of the larger-sized IPOs coming from consumer
staples and financials. No listings in the real estate sector were observed.

The sectoral breakdown is based on the Bloomberg Industry Classification Standard (BICS).
(12/03/24)

Sector Breakdown of Stock Debuts

31. After-Market Performance a Mixed Bag

After-market performance of IPOs in Southeast Asia looks underwhelming with only Malaysia and
the Philippines' postings faring better than the rest of the region's. New listings that are trading
below the initial offering price -- so-called "broken" IPOs -- only make up 21% of the offerings in
Malaysia while share prices of the three postings in the Philippines have all increased following

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and
distributed locally by Bloomberg Finance LP ("BFLP") and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India,
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marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
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their debut. Roughly half of the new listings in Indonesia's stock exchange stumbled after their
debut. The percentage is higher for Thailand at 62%, while all debuts in Vietnam are broken.

Share prices of 21 stocks that made their debut year-to-date have more than doubled after their
IPO. Another 11 have lost more than 50% of their market value. (12/03/24)

SE Asia 2024 New Listings: Performance Since IPO

32. Size Matters: Smaller Company IPOs Broke Harder

Overall, more IPOs were unbroken (68) than broken (45) based on the Nov. 26 closing price this
year. The market capitalization of unbroken IPOs was slightly larger, at an average of $128 million,
compared with $104 million for broken IPOs. More than half of the broken IPOs fall under the
smallest market capitalization group. The largest of the broken IPOs, Thai Credit Bank, had a
market capitalization at IPO of almost $1 billion, before the share price tumbled by more than 30%.

Small IPOs also broke harder, with a median return of negative 40% for those with less than $50
million in market capitalization, while larger debuts recorded lower losses. Similarly, the gain was
less pronounced the larger the unbroken IPO size. Malaysia was the exception, where IPOs with
more than $100 million in market cap broke the hardest. (12/03/24)

Unbroken and Broken IPO Performance by Market Cap

To contact the analyst for this research:

Sufianti Sufianti at [email protected]

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and
distributed locally by Bloomberg Finance LP ("BFLP") and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India,
Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP with all the global
marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary
in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice, and nothing herein shall constitute an offer of
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