Shares of DRB-Hicom Bhd surged to a three-month high after delivering earnings well above expectations. The stock climbed as much as 8% to RM1.24, valuing the group at roughly RM2.4 billion. But beneath the headline beat, analyst opinions remain sharply divided. What Drove the Surprise According to Hong Leong Investment Bank : 4QFY2025 core PATAMI: ~RM136 million FY2025 core earnings: ~RM178 million Earnings came in at 189% of HLIB’s forecast Key drivers: Strong Proton vehicle sales Improved margins Land sales contribution Proton highlights: 19,800 units sold in January 2026 (record high) Over 100,000 bookings for Saga MC3 3,000+ deliveries of e.MAS 5 EV in January Consolidation of manufacturing at Tanjung Malim for cost efficiency Money Master Take This is a classic case of headline beat vs structural sustainability . 1️⃣ Proton Is Carrying the Story The turnaround narrative rests heavily on Proton. Sales momentum is strong EV adoption gaining traction Geely reg...
South Korea’s sovereign pension powerhouse just delivered its strongest performance in history.
National Pension Service (NPS) returned 18.82% in 2025, marking its third straight year of record gains — the highest since its establishment in 1988.
With 1,458 trillion won (US$1.02 trillion) under management, its positioning now carries major implications for Korean equities.
The Numbers Behind the Surge
Total AUM: 1,458 trillion won
2025 return: 18.82%
Domestic equities: +82.44%
Overseas equities: +19.74%
The rally was driven largely by semiconductor and AI-linked stocks.
Meanwhile, the KOSPI Index has:
Climbed more than 45% in 2026
Gained over 75% in 2025
Surpassed the 6,000 level
Money Master Take
This story is not about past returns.
It’s about capital flow power and forward allocation impact.
1️⃣ Domestic Reallocation Is the Real Signal
NPS recently:
Increased target exposure to domestic equities
Reduced the scale of overseas equity trimming
Adjusted allocation despite already strong local performance
When a US$1 trillion fund raises domestic allocation after a 75%+ rally, it signals:
Institutional conviction in structural earnings momentum
Confidence in AI and semiconductor cycle durability
Willingness to absorb valuation expansion
Key Insight: NPS is not chasing — it is endorsing the structural story.
2️⃣ Liquidity Anchor for the Kospi
At this scale, NPS acts as:
A volatility dampener
A structural domestic buyer
A currency stabilizing force
Retail outflows into US assets have pressured the won, but NPS’s domestic equity tilt offsets part of that dynamic.
This creates a floor effect during corrections.
3️⃣ Performance Composition Matters
Domestic equities returned 82.44%.
That concentration tells you performance was not broad-based — it was semiconductor and AI infrastructure heavy.
Translation:
Index concentration risk is elevated
Leadership breadth may narrow
Momentum remains tech-dependent
Investors should monitor whether earnings revisions justify current valuation multiples.
4️⃣ Forward Implication for Investors
If NPS continues:
Raising domestic exposure
Maintaining flexible asset allocation
Supporting local liquidity
Then dips in the Kospi may find institutional support faster than in prior cycles.
But upside from here depends on:
Semiconductor pricing cycle
AI capital expenditure sustainability
Global demand resilience
Bottom Line
The world’s third-largest pension fund just validated Korea’s equity rally.
Asset allocation shifts matter more than past returns.
Institutional flow momentum remains supportive — but increasingly tech-concentrated.
For investors, the key question now isn’t whether Korea had a good year.
It’s whether earnings growth can justify another one.
Comments
Post a Comment