The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0439 GMT - JD.com may benefit from China's multi-year trade-in subsidy program and improvements in supply chain efficiency, Morningstar analyst Chelsey Tam says in a research note. The Chinese e-commerce giant could be a key beneficiary of the consumption subsidy program due to its large revenue contribution from home appliances and electronics, which account for 47% of its revenue in 3Q, the analyst notes. With the program expanding to cover cell phones this year, it could further boost JD.com's revenue, the analyst says, adding that she expects the subsidy program this year to increase materially from the 35 billion yuan-40 billion yuan seen in 2024. Morningstar notes JD's shares are undervalued, naming the stock as its top pick in the China e-commerce space. Its H shares are last at HK$151.40. (sherry.qin@wsj.com)

0423 GMT - The signing of the Johor-Singapore Special Economic Zone has likely increased the urgency for DBS to expand its presence in the Malaysian market, say CreditSights analysts. According to media reports, the Singapore-listed bank is considering expanding in Malaysia through Alliance Bank Malaysia. DBS CEO Piyush Gupta has previously said that Malaysia has always been a core market for the Singapore-listed bank, although it has faced constraints due to regulatory or governmental issues, they note. DBS only has a branch in Malaysia that serves corporate clients, while its local peers OCBC and UOB have longstanding and significant presences in Malaysia with their subsidiaries among the leading foreign banks in the country, they add.(amanda.lee@wsj.com)

0418 GMT - New Zealand's NZX-50 closed 0.1% lower at 13037.14, extending its losing streak to three days. Despite a positive lead from U.S. equities, the benchmark index bounced between narrow gains and losses through Wednesday's session, slipping below the gain-line again at the end of the day. The NZX-50 is down 0.7% so far this week, and looks to be on course for a third weekly decline in four weeks. Shares in the largest two companies by market capitalization, Fisher & Paykel Healthcare and Meridian Energy, finished flat. Airport operator Auckland International and infrastructure investor Infratil lost 0.9% and 1.5%, respectively. (stuart.condie@wsj.com)

0406 GMT - Indian shares are higher as concerns over borrowing costs ease and hopes for domestic earnings continue. Pharmaceutical and tech stocks lead the gains. Sun Pharmaceutical Industries is up 1.3%, Infosys is 1.1% higher and Tata Consultancy Services rises 0.8%. Among individual movers, PNB Housing Finance is up 3.5% after its 3Q net profit saw 43% on-year growth. Investors are focusing on earnings, with HDFC Bank and Hindustan Unilever set to announce their results later in the day. Sensex is up 0.3% at 76079.29. (kosaku.narioka@wsj.com; @kosakunarioka)

0333 GMT - Sea remains well-positioned for growth in 2025, analysts at CGS International write in a note. Its e-commerce business Shopee is improving its profitability without compromising on gross merchandise value growth, and the platform's main focus will likely be driving revenue while growing margins gradually and sustainably, they add. The competitive environment appears to have stabilized and rationalized as rivals like Lazada and TikTok Shop continue to improve monetization, they add. Sea's financial-services sector is also expected to see strong revenue growth this year, driven by greater lending penetration, they add. CGSI retains its add rating with a target price of $136. Should Sea provide a positive earnings guidance for 2025, it could be a key catalyst, they add. Shares last closed at $118.16. (kimberley.kao@wsj.com)

0333 GMT - United Tractors' performance across segments looks resilient, Maybank Sekuritas Indonesia analysts say in a research report. This performance is supported by stable growth of its heavy equipment segment, steady coal production at its mining services subsidiary, and expansion in its gold production, the analysts say. The brokerage reckons robust cash flow, prudent capital allocation, and solid net cash position reinforce the Indonesian heavy equipment distributor's solid long-term growth outlook. The brokerage resumes stock coverage with an unchanged buy rating and a target price of IDR31,500.00 versus IDR28,000.00 previously, supported by factors including the company's strong market position. Shares are 1.0% higher at IDR25,950.00. (ronnie.harui@wsj.com)

0323 GMT - Singapore's grocery retailers could gain from a sturdy consumption outlook, RHB Singapore analyst Alfie Yeo says in a note. The brokerage's economists estimate Singapore's 2025 GDP will grow 3.0%, driven by the manufacturing and services sectors. This bodes well for consumption, as domestic industries recover and benefit from more robust global demand, Yeo says. The sector's valuations also seem compelling, citing 13X-17X FY2025 price-to-earnings ratio with around 4%-5% dividend yields, he adds. RHB maintains an overweight rating on Singapore's grocery retailers sector, with buy calls on Sheng Siong Group and DFI Retail Group.(amanda.lee@wsj.com)

0320 GMT - Tech companies could provide strong commentary during the coming earnings season, supported by the rosy AI outlook, Wedbush analysts say in a research note. President Trump on Tuesday announced a $500 billion joint venture between OpenAI, Oracle and SoftBank, which the analysts say may usher in a wave of massive AI investments in the U.S. President Trump could aggressively court more AI investments in the U.S., with China tariff negotiations in the background all part of a broader competition, they add. There could be $2 trillion of AI-related capital expenditure over the next three years to match the needs of enterprises and consumers, they say. More software companies could join the AI party, with the enterprise consumption phase likely kicking off in 2025, they say. (sherry.qin@wsj.com)

0307 GMT - Apple's iPhone shipments to China will likely remain weak in 2025, analysts at DBS Group Research write in a note. Apple will likely keep facing headwinds in China amid soft consumer sentiment and fierce competition, DBS says. Apple's delay in rolling out AI features in iPhones is keeping users from replacing their handsets, DBS says. A major replacement cycle will only happen if the fully fledged Apple Intelligence AI features are launched, and if the next iPhone model comes with significant specification upgrades, DBS adds. DBS expects iPhone sales in China to remain weak until 1Q of FY 2026 ending September. DBS downgrades Apple to fully valued with a reduced target price of $210 from $243, reflecting reduced expectations for iPhone shipment growth this year. (kimberley.kao@wsj.com)

0256 GMT - BHP should consider swapping out its net debt target for one on leverage ratio as the mining giant enters a new era of growth, says Goldman Sachs analyst Paul Young. In a note, Young says BHP's net debt ceiling "appears conservative, as the company is growing Ebitda." BHP said Tuesday that it expects net debt to be around the top end of its US$5 billion-US$15 billion target range at the end of FY 2025. "In our view, setting balance sheet targets on a leverage ratio rather than net debt basis could be more appropriate as BHP enters a period of organic (and possibly inorganic) growth," says Young. GS has a buy rating on BHP. Its target drops by 1.5% to A$46.80. BHP is down 1.7% at A$39.94. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0238 GMT - Net debt of around US$12 billion will make it hard for miner BHP to give shareholders more than its 50% minimum payout this fiscal year, Macquarie analysts say in a note. They cut their FY 2025 dividend estimate by 13% to US$0.91/share. In a quarterly update, BHP estimated its net debt at Dec. 31 was US$11.5 billion-US$12.5 billion. It earlier reported net debt of US$9.12 billion at June 30. The analysts reckon BHP, which bid for Anglo American last year, will "remain patient" on M&A. They prefer the Australia-based miner over Anglo-Australian rival Rio Tinto on a 12-month horizon "but acknowledge risk to this view into the 1HFY25 result." Macquarie reiterates an outperform rating and target of A$42.00/share. BHP is down 1.5% at A$40.00. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0235 GMT - Sea Ltd.'s investments at e-commerce platform Shopee should continue to support robust gross merchandise value growth of 15% in 2025, HSBC Global Research analysts say in a research report. These investments in areas including customer service should also strengthen the consumer Internet company's competitive moat, while its scale will probably help to build cost leadership in e-commerce, the analysts say. HSBC expects Sea's adjusted Ebitda to more than double in two years to US$4.2 billion in 2026, thanks to drivers such as an improvement in Shopee's unit economics. HSBC raises the American depositary receipt's target price to US$140.00 from US$122.00 with an unchanged buy rating. ADRs last quoted at US$118.16. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

January 21, 2025 23:39 ET (04:39 GMT)

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