Summary of Key Points from the Conference Call Industry Overview - The focus for 2026 in Asian markets will shift from AI-driven stocks to growth opportunities beyond AI, dividends, and previously overlooked stories in Asia [2][12][14] - Key themes include structural stories in energy self-sufficiency, new technology, financial deepening, and the growth of formal retail in ASEAN [12][14] Company-Specific Insights 1. Harbin Electric (1133 HK) - **Sector**: Electrical Equipment - **Market Cap**: USD 3.648 billion - **Current Price**: HKD 15.53; **Target Price**: HKD 22.00 - **PE Ratio**: 10.7; **PB Ratio**: 1.6; **ROE**: 16.2% - **Key Points**: - Benefiting from China's push for energy self-sufficiency, particularly in coal and nuclear power [16][18] - Expected earnings CAGR of 34% from 2024-2027 [19] - Potential inclusion in Stock Connect in 2026 [19] 2. Horizon Robotics (9660 HK) - **Sector**: Auto Components - **Market Cap**: USD 14.901 billion - **Current Price**: CNY 8.44; **Target Price**: CNY 11.00 - **Key Points**: - Positioned to benefit from the growth of autonomous driving technology [23][25] - Expected revenue CAGR of 64% from 2025-2027 [27] 3. Goldwind Science & Tech (002202 CH) - **Sector**: Electric Utilities - **Market Cap**: USD 8.753 billion - **Current Price**: CNY 15.35; **Target Price**: CNY 20.40 - **Key Points**: - Leading manufacturer of wind turbines with strong demand in emerging markets [30][32] - Expected net profit growth of 58% in 2025 [32] 4. Trip.com Group (TCOM US) - **Sector**: Internet Software & Services - **Market Cap**: USD 48.707 billion - **Current Price**: USD 74.52; **Target Price**: USD 90.00 - **Key Points**: - Dominates China's online travel market with over 50% GTV [39] - Expected revenue growth of 15% CAGR from 2025-2027 [39] 5. BOCHK Holdings (2388 HK) - **Sector**: Commercial Banks - **Market Cap**: USD 54.013 billion - **Current Price**: HKD 39.70; **Target Price**: HKD 45.20 - **Key Points**: - Benefits from increased cross-border opportunities and offers a 5.5% dividend yield [44][46] 6. PB Fintech (POLICYBZ IN) - **Sector**: Internet Software & Services - **Market Cap**: USD 8.999 billion - **Current Price**: INR 1,734.70; **Target Price**: INR 2,250.00 - **Key Points**: - Operates India's largest online insurance marketplace [49] - Expected revenue CAGR of 30% from 2025-2028 [51] 7. Phoenix Mills (PHNX IN) - **Sector**: Real Estate Management & Development - **Market Cap**: USD 6.904 billion - **Current Price**: INR 1,714.80; **Target Price**: INR 2,110.00 - **Key Points**: - Largest mall operator in India, evolving into a mixed-use developer [54][56] 8. E-Mart (139480 KS) - **Sector**: Multiline Retail - **Market Cap**: USD 1.482 billion - **Current Price**: KRW 79,000.00; **Target Price**: KRW 120,000.00 - **Key Points**: - Trading at 0.2x PB, highlighting deep value [59] - Transformation into a multiline retailer with various catalysts for growth [60] 9. E Ink Holdings (8069 TT) - **Sector**: Technology - **Market Cap**: Not specified - **Current Price**: TWD 169.00; **Target Price**: TWD 305.00 - **Key Points**: - Holds over 90% of the global e-paper market and expanding capacity [62] 10. ICTSI (ICT PM) - **Sector**: Transport & Logistics - **Market Cap**: Not specified - **Current Price**: PHP 558.50; **Target Price**: PHP 630.00 - **Key Points**: - Offers growth and yield at attractive valuations [62] 11. City Developments (CIT SP) - **Sector**: Real Estate Management & Development - **Market Cap**: Not specified - **Current Price**: SGD 7.43; **Target Price**: SGD 11.00 - **Key Points**: - Positioned to benefit from a turnaround in Singapore's property sector [62] 12. Sumber Alfaria Trijaya (AMRT IJ) - **Sector**: Retail - **Market Cap**: Not specified - **Current Price**: IDR 1,895.00; **Target Price**: IDR 2,900.00 - **Key Points**: - Expected to benefit from policies boosting consumption in Indonesia [62] Additional Insights - Asian dividends have doubled over the last 20 years, indicating potential for further increases in payout ratios [12] - The report emphasizes the importance of EPS growth for continued market gains, particularly in China [12][14]

Financial Data and Key Metrics Changes - Real estate FFO was $2.95 per share in Q1 2025, compared to $2.91 in the prior year, indicating a slight increase [5] - Domestic and international operations contributed $0.14 of growth, driven by a 5% increase in lease income [6] - First quarter funds from operation were $1 billion or $2.67 per share, compared to $1.33 billion or $3.56 per share last year [7][8] - The prior year results included $0.81 per share in after-tax net gains, primarily from the sale of the company's remaining ownership interest in ABG [8] Business Line Data and Key Metrics Changes - The occupancy rate for malls and premium outlets was 95.9%, an increase of 40 basis points year over year [6] - The mills occupancy was 98.4%, an increase of 70 basis points compared to the prior year [6] - Average base minimum rents for malls and outlets increased by 2.4% year over year, while mills increased by 3.9% [7] Market Data and Key Metrics Changes - Mall and premium outlet retailer sales per square foot were $7.33 for the quarter [7] - Domestic NOI increased by 3.4% year over year, while portfolio NOI, including international properties at constant currency, grew by 3.6% for the quarter [7] Company Strategy and Development Direction - The company completed the acquisition of luxury outlet malls in Florence and San Remo, Italy, and opened its first outlet in Jakarta, Indonesia [4] - Development projects underway have a net cost of $944 million with a blended yield of 9%, with approximately 40% being mixed-use projects [10] - The company announced a dividend of $2.1 per share for Q2, a year-over-year increase of 5% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting strong demand despite some uncertainties related to tariffs and inventory levels [20][21] - The company reaffirmed its full-year 2025 real estate FFO guidance range of $12.4 to $12.65 per share, expecting results to trend towards the middle of the range [12] - Management indicated that while there are uncertainties, the overall consumer sentiment remains stable, and they are cautiously optimistic about future sales [51][53] Other Important Information - The company completed 12 secured loan transactions totaling approximately $2.6 billion, with a weighted average interest rate of 5.73% [11] - The company is actively managing its capital allocation strategy to adapt to diverse macroeconomic cycles [5] Q&A Session Summary Question: What conversations are being had with retailers regarding leasing? - Management noted that only four deals were affected by tariff concerns from one European retailer, indicating strong overall demand [15][20] Question: What is the inventory perspective for retailers? - Retailers have about a month to decide on inventory sourcing from China, with many reducing exposure to Chinese imports [32][33] Question: How is the company approaching tenant negotiations amid uncertainty? - Management stated that it is business as usual, with strong demand and constrained supply, and they are not making significant changes to lease negotiations [39] Question: What is the outlook for department store closures? - Management does not expect major changes in department store closures, as it varies by retailer and their reliance on private label goods [95] Question: How is the luxury tenant market performing? - Management reported that luxury tenants are generally stable, with some brands performing well while others are updating their offerings [113]