0320 GMT - Southeast Asia's rubber products sector tailwinds appear largely priced in, with share prices in the sector gaining 40%-50% in 2024, prompting RHB IB to downgrade the sector's rating to neutral from overweight. While local manufacturers may still benefit from favorable operating conditions amid a trade diversion in the U.S., sales volumes could normalize in 1H due to earlier front-loading activity, analyst Oong Chun Sung and team say in a note. They add that earnings growth may struggle to align with the sector's high valuations, indicating limited upside. RHB pegs Riverstone Holdings as its top pick for the sector. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 08, 2025 22:20 ET (03:20 GMT)
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