FSMOne Malaysia

Alibaba: An AI opportunity hidden behind e-commerce headwinds —————————————————— In our view, the market continues to overemphasise the short-term earnings drag from instant commerce while underappreciating the long-term earnings potential of Alibaba's Cloud and AI businesses. 📖: Read the full article here 💡: BABA-W Alibaba Group Holding Limited

💻 Where Are We in the Tech Cycle? Technology remains one of the market’s strongest growth stories, but also one of its most volatile. 📈📉 Join Jim Lim, CFA, from Maybank Asset Management as he shares his outlook on semiconductors, hardware and software, what is driving the current tech cycle, and where he sees the key opportunities and risks ahead. 📅 19 August 2026, Wednesday ⏰ 8PM 🔗 Register today: https://bit.ly/3Sm25dS

Is AI demand real or a bubble? And what it means for Asia's chipmakers —————————————————— • Samsung and SK Hynix hold record combined net cash, cushioning any downturn beyond their contracted revenue. • Company guidance points to a 2028 shortage, not the trough the market is currently pricing in. • We maintain our Very Attractive rating on Asian semiconductors, targeting HKD 334 for the Global X Asia Semiconductor ETF (HKEX: 3119). • Physical AI hardware demand is confirmed by players across the supply chain — chipmakers, equipment makers, and buyers with every incentive to understate it. • 实体人工智能(AI)硬件需求得到了供应链中各方参与者的证实，这些参与者包括芯片制造商、设备制造商和买家，而他们都有充分的理由低估这一需求。 • 亚洲芯片制造商按交付收款，并根据已收到的多年期合同款项，而非对未来回报的押注。 • Asian chipmakers get paid on delivery and under multi-year contract — money already in hand, not a bet on future returns. • 三星和SK海力士持有创纪录的合并净现金，这缓冲了超出其合同收入范围的任何经济下行。 • 公司指引表明2028年将出现短缺，而非市场目前计入的低谷。 • 我们维持对亚洲半导体的“非常具吸引力”评级，目标价为Global X亚洲半导体挂牌基金（港交所：3119）的334港元。 • 實體人工智慧(AI)硬體需求已獲得供應鏈中各參與者（包括晶片製造商、設備製造商和買家）的證實，儘管這些參與者都有充分的理由低估此需求。 • 亞洲晶片製造商在交貨時獲得付款，且手握多年期合約款項，而非押注未來回報。 • 三星和SK海力士持有創紀錄的合併淨現金，為超出其合約收入範圍的任何經濟下行提供緩衝。 • 公司指引預示2028年將出現短缺，而非市場目前已反映的谷底。 • 我們維持對亞洲半導體「非常具吸引力」的評級，並將Global X亞洲半導體掛牌基金(ETF) (港交所: 3119)的目標價定為港幣334元。 📖: Read the full article here 💡: Global X Exchange Traded Funds Series OFC - Global X Asia Semiconductor ETF

Meta’s AI Push: Why Billions in Spending Have Failed to Secure the Lead —————————————————— Meta has talent, data and capital, yet still lacks an industry-leading model. This article examines its organisation, model architecture and hardware strategy to explain why big-spending Meta has failed to turn its formidable resources into a competitive advantage. 📖: Read the full article here 💡: Meta Platforms

Gold rallies to around USD 4,400, but the case against it hasn't moved —————————————————— The rebound is not a reversal of the structural case. It reflects two risk events, followed by a rate repricing on Hormuz reopening hopes that collapsed on 10 August, sending gold prices higher again on renewed safe-haven demand. Meanwhile, China’s physical gold demand is pulling ahead of India’s. Here is what has changed, and why our allocation has not. 📖: Read the full article here 💡: SPDR® Gold MiniShares

MNRB’s Takaful Divestment: What It Means for Bondholders? —————————————————— 📖: Read the full article here 💡: MNRBMK 5.210% 26Oct2032 Corp (MYR) MNRBMK 4.460% 22Mar2034 Corp (MYR)

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OCBC 1H26: Record quarter, wealth-led growth shines, but valuation raises the bar —————————————————— • OCBC posted record 1H26 net profit of SGD 4.19 billion, up 13%, as strong non-interest income increasingly outweighs a still-declining net interest margin. • The wealth franchise remains the structural growth engine, with wealth management income rising 27% to SGD 3.29 billion and banking wealth AUM reaching a record SGD 350 billion. • A firmer SORA backdrop could make net interest income more resilient than OCBC’s current guidance assumes, cushioning earnings against further margin pressure. • Part of the 51% increase in non-interest income was driven by market-sensitive GEH investment income that may not recur at the same pace, although fee and insurance fundamentals remain durable. • We raise our target price to SGD 32. With CET1 at the lower end of management’s target range and valuation already elevated, further returns will depend increasingly on earnings delivery. 📖: Read the full article here 💡: OCBC Bank

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Eli Lilly 2Q26 earnings: GLP-1 dominance holds despite slow Foundayo launch —————————————————— • Eli Lilly delivered a strong 2Q26, with revenue rising 48% YoY to USD 23.0 billion and EPS exceeding consensus by around 40%. • Mounjaro sales surged 91% YoY to USD 9.9 billion, reinforcing Lilly’s leadership in the fast-growing GLP-1 market despite rising competition. • Foundayo’s slower launch remains a key focus, but prescription momentum accelerated in late July as access and affordability improved. • Strong growth across immunology, oncology and neuroscience strengthens Lilly’s portfolio diversification, helping reduce reliance on its core cardiometabolic franchise over the long term. • We raised Lilly’s target price to USD 1,390 as stronger GLP-1 demand supports earnings upgrades, although upside potential has narrowed after the share price rally. 📖: Read the full article here 💡: Eli Lilly & Co

DBS 1H26: Strong earnings, attractive dividend, valuation catches up —————————————————— • DBS delivered a record first half, with net profit rising to SGD 6.01 billion as both interest and non-interest income reinforced earnings momentum. • Net interest income rose 2% QoQ as balance sheet growth more than offset margin compression, signalling that the earnings drag from lower interest rates is easing. • Wealth management fees surged 33% to a record SGD 1.83 billion, while wealth assets under management surpassed SGD 500 billion, reinforcing non-interest income as the key growth driver. • The recent share price re-rating reflects stronger fundamentals, but a valuation of around 3.0x forward price-to-book suggests future returns will depend increasingly on earnings delivery rather than further multiple expansion. • We raise our target price to SGD 77.4. While capital upside is now more modest, the forward dividend yield of around 4.6% continues to offer attractive income appeal for long-term investors. 📖: Read the full article here 💡: DBS

Samsung Electronics 2Q26 Results: Memory Is Paving Samsung's New Growth Path —————————————————— • Memory has become Samsung's primary growth engine, driving record semiconductor earnings and fundamentally reshaping the company's revenue mix. • Semiconductor revenue surged 357% YoY as record DRAM and NAND shipments combined with sharply higher memory prices lifted profitability. • Long-term supply agreements, advance customer payments and minimum pricing improve earnings visibility while reducing investment risk across the memory business. • Despite short-term share price weakness, AI infrastructure demand, a higher-value product mix and expanding memory capacity continue to support Samsung's long-term earnings outlook. • Foundry momentum is strengthening as improving 2nm yields and new AI-related customer orders position Samsung for a second semiconductor growth engine. 📖: Read the full article here 💡: Franklin FTSE South Korea ETF Global X Exchange Traded Funds Series OFC - Global X Asia Semiconductor ETF

Cloud Computing Update: Increasingly diverging —————————————————— • We continue to favour the traditional CSPs, as we expect cloud revenue growth to accelerate further over the coming quarters. We also expect cloud revenue to grow at a faster pace than capital expenditure, which should gradually alleviate concerns over AI monetisation. • Should AI token consumption temporarily slow—for example, due to delays in major model releases, AI laboratories reducing training activity following large-scale deployments, or enterprises postponing AI pilot programmes—Nebius would likely be affected through two channels simultaneously. • We expect greater divergence across the cloud sector in the second half of the year. Consistent with our broader macro outlook, our base case is that inflationary pressures will remain persistent, increasing the risk of further interest rate hikes. In such an environment, companies with (1) higher financial leverage and (2) more demanding valuations are likely to face greater downside risk. • We remain selective on companies with elevated funding requirements and weaker balance-sheet flexibility, including Oracle, neocloud providers and pre-contract miners, despite pockets of strong operating momentum. Our preferred exposures remain Alphabet, Microsoft and Amazon. 📖: Read the full article here 💡: Microsoft Corp Amazon.com Alphabet Invesco NASDAQ Internet ETF

AMA Webinar: Buy the Dip, Stay Defensive or Seek Income? LIVE NOW! https://www.youtube.com/live/TBsz2XC14-0?si=brnqSigTyO2tYjmJ

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SK Hynix: The Indispensable Memory Giant in AI Era —————————————————— SK Hynix (NASDAQ:SKHY) recently completed a successful ADR listing in the United States. Although the listing drew strong market attention beforehand, the recent multi-day decline in Korean equities and concerns over AI investment have added pressure to SK Hynix's share price. Still, we believe that as the king of memory in the AI supply chain, SK Hynix has considerable room for further upside. 📖: Read the full article here 💡: SK Hynix Inc Global X Exchange Traded Funds Series OFC - Global X Asia Semiconductor ETF

Malaysia Data Centre: More Than Just a Pipeline —————————————————— • Construction activity remains healthy, with selected main-contractor awards reaching RM6.5bn in 1H26, equivalent to around 70% of the FY25 full-year total, while average award size increased from around RM628m in 2024 to RM1.15bn in early 2026. • Within the value chain, Construction remains the clearest near-term beneficiary, while MEP and water infrastructure should see a broader earnings contribution as projects advance. Utilities benefit from regulated grid investment and recurring electricity demand, although current valuations appear to price in much of the positive outlook. • We remain constructive on Malaysia’s data-centre build-out entering 2H26, with sustained construction awards, rising connected capacity and higher utilisation showing that projects are progressing beyond investment approvals into real activity. • Malaysia has emerged as one of the main beneficiaries of Asia’s data-centre investment wave, with approved data-centre and cloud-computing investments exceeding RM178bn since 2021, much of which has been concentrated in Johor. • Johor’s growth in capacity has been matched by healthy demand, with its colocation vacancy rate standing at just 0.7%. The tight vacancy rate shows that Johor is no longer growing on investment commitments alone, as new facilities are being absorbed as they come online. • The pipeline is beginning to move into operation. As at March 2026, TNB had secured 59 data-centre projects with total maximum demand of 8.3GW, of which 36 projects representing 4.5GW had already been completed and connected to the system. • Actual data-centre load reached 1,054MW in March 2026, more than double the level recorded a year earlier, while implied utilisation improved to around 23% from 17%. Encouragingly, actual demand has grown faster than connected capacity despite 15 additional projects entering the system over the past year. 📖: Read the full article here 💡: AHAM AIIMAN Quantum Fund Kenanga Blue Chip Fund

Fund Choice August 2026: Maybank Global Sustainable Technology Fund —————————————————— • Major hyperscalers, including Alphabet, Microsoft and Amazon, have substantial order backlogs for their cloud businesses. • The Maybank Global Sustainable Technology Fund (MGSTF) maintains a high-conviction, growth-oriented positioning focused on secular technology themes, complemented by a sustainability (ESG) overlay. • While rising uncertainties in the remainder of the year will pose greater challenges for companies with weak cash flow and high gearing ratios, we believe that the big tech firms could remain resilient. • While the market has viewed higher spending as a negative for share prices, we believe the current risk-reward ratios are becoming increasingly attractive for these big tech companies. • Mega-tech firms underperformed as market sentiment shifted from “growth at any price” towards a greater demand for tangible returns on these massive investments. 📖: Read the full article here 💡: Maybank Global Sustainable Technology Fund - MYR Hedged

Amazon 2Q26 Earnings Update: Tale of Two Halves —————————————————— • AWS was the primary growth driver during the quarter. Revenue grew 37% y/y to $42.2 billion — an annualised run rate of about $169 billion — marking the fastest growth since 2021 • Online stores grew 15% y/y, beating consensus, supported by this year's Prime Day discount event extending into June. • Capital expenditure during the quarter reached $54.2 billion, compared with $32.1 billion a year ago, marking the highest figure recorded since the AI spending frenzy began. • Amazon now spends more on building capacity than its operations generate, which is why free cash flow swung to a $7.6 billion outflow. • As such, we reiterate our BUY call on Amazon, but with a lower TP. 📖: Read the full article here 💡: Amazon.com