Introduction

Maybank Research delved into the ASEAN telecommunications and Internet sectors, offering investors a detailed analysis of key companies, their growth potential, and market challenges. This report combines investor feedback with Maybank’s expert insights, creating a comprehensive guide for navigating the ASEAN TMT landscape in 2025.

Sea Ltd (SE US) – Riding on Shopee and Free City

Sea Ltd emerged as a key focus for investors, driven by optimism surrounding its e-commerce platform Shopee and its new gaming venture, Free City. The company is projected to achieve a 21% GMV growth for Shopee in 2025, a figure that surprised many investors as it reflects moderate market expectations. Additionally, Shopee’s take-rate is expected to rise, supported by stable competition and ASEAN’s relatively low take-rates compared to global benchmarks.

Free City, the company’s newly launched game, has garnered significant interest, with investors keen on its potential contribution to FY25 revenue. However, questions remain about Sea Ltd’s valuation and whether its anticipated growth has already been priced in. Despite these concerns, Maybank maintains a BUY recommendation for Sea Ltd with a target price of USD130.0, compared to its current price of USD115.08.

Grab (GRAB US) – Balancing Growth and Cost Optimization

While Grab continues to show potential in the internet space, concerns about slowing tourism in Thailand and rising competition from Gojek have tempered investor enthusiasm. The partnership with AWS raised questions about potential cost increases. However, Maybank believes that Grab’s consolidation of cloud vendors could lead to cost savings instead of escalations.

Despite these challenges, Grab’s diversified offerings in ride-hailing, food delivery, and financial services make it a resilient player in the market. The recommendation for Grab remains BUY with a target price of USD6.24, up from its current price of USD4.50.

GoTo (GOTO IJ) – A Rising Star in ASEAN Tech

GoTo, the Indonesian tech giant, continues to attract positive sentiment from investors. Positioned as a major player in the e-commerce and on-demand services sectors, GoTo benefits from its strong market presence and growth prospects. The stock is currently priced at IDR84.0, with a target price of IDR95.0, making it another BUY recommendation by Maybank.

Singtel (ST SP) – Capital Management Opportunities

Singtel has captured significant investor interest due to its potential capital management initiatives. Maybank estimates that if Singtel executes its capital recycling plans, it could generate an excess capital of SGD4.3 billion over the next three years. This surplus could pave the way for share buybacks, enhancing shareholder value.

Singtel is a preferred pick in the telco sector, with a BUY recommendation and a target price of SGD3.65, compared to its current price of SGD3.13.

True Corp (TRUE TB) – Synergy and Spectrum Savings

True Corp is gaining traction among investors due to its ongoing synergy initiatives and spectrum cost savings following the 2Q25 auction. The conducive competitive environment further supports its growth outlook. With its current price at THB11.90 and a target price of THB13.90, Maybank recommends BUY for True Corp.

XL Axiata (EXCL IJ) – Limited Catalysts but Still a Preferred Pick

Despite limited catalysts in the Indonesian telco market, XL Axiata remains a preferred pick. Its ability to navigate competition and sustain growth makes it a resilient choice for investors. The stock is currently priced at IDR2270, with a target price of IDR3200. Maybank maintains a BUY recommendation for XL Axiata.

Globe Telecom (GLO PM) – IPO Prospects for GCash

Globe Telecom has captured investor interest due to the potential IPO of its fintech arm, GCash. This development could unlock significant value for shareholders. Globe is currently trading at PHP2278, with a target price of PHP2750. Maybank recommends BUY for Globe Telecom.

Data Centers – Navigating US Chip Control

The US restriction on chip supplies has raised concerns about its impact on ASEAN data centers, particularly in Malaysia, which has received the bulk of regional investments. However, Maybank believes the impact will be limited. ASEAN’s data center infrastructure lags 55-70% behind developed markets like the US, China, Korea, and Taiwan, offering significant growth potential in cloud computing and storage.

Additionally, with China’s access to advanced GPUs curtailed, ASEAN could see increased demand for GPU-as-a-Service (GPUaaS). Maybank remains cautiously optimistic about the medium-term growth of data centers in the region.