In today’s briefing:
- American Airlines Braces for Turbulence: Are Tariffs and Corporate Cuts Threatening Its 2025 Takeoff?
- Lucror Analytics – Morning Views Asia
- Malaysian Banks Screen; Stick with RHB Bank and CIMB
- SES AI Corp. – 1Q25 Revenue Preview Demonstrates Continuing Traction on Commercialization
American Airlines Braces for Turbulence: Are Tariffs and Corporate Cuts Threatening Its 2025 Takeoff?
- American Airlines is navigating a complex and turbulent operating environment as macroeconomic pressures, declining consumer confidence, and reduced corporate travel weigh heavily on the airline industry.
- While the broader sector has been battered by a steep drop in airline stock valuations—American Airlines itself has declined 24% in the past month alone—American has nonetheless posted a strong financial performance in recent quarters.
- In Q4, the carrier reported an adjusted pretax profit of $808 million and EPS of $0.86, beating guidance and contributing to a full-year adjusted pretax profit of $1.8 billion.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Longfor Group, Sunny Optical, Greentown China
In the US, the March CPI came in below estimates at negative 0.1% m-o-m (0.1% e / 0.2% p) and 2.4% y-o-y (2.5% e / 2.8% p). This was driven by lower energy costs, as well as a decline in discretionary spending such as airfares, used vehicles and hotels. Core CPI (excluding food and energy) slowed to 0.1% m-o-m (0.3% e / 0.2% p) and 2.8% y-o-y (3.0% e / 3.1% p).
The White House has clarified that US President Donald Trump’s total tariffs on Chinese imports stands at 145%, comprising a 125% reciprocal tariff rate on top of the existing 20% duty imposed earlier in February and March.
Malaysian Banks Screen; Stick with RHB Bank and CIMB
- RHB Bank remains our Malaysian bank top pick, as shown in our scorecard; CIMB shares have de-rated markedly year-to-date and are deep value
- Scorecard topping RHB Bank has strong fundamental value credentials and it is narrowing the gap on returns with peers, whilst also improving its delinquency ratio
- CIMB ranks third on our scorecard, due to its high NPL ratio but credit quality is improving; we see scope for operating efficiency gains and it has very attractive valuations
SES AI Corp. – 1Q25 Revenue Preview Demonstrates Continuing Traction on Commercialization
- SES announced on Tuesday that its 1Q25 revenue would be $5-5.8 million, in line with prior guidance (see our summary note from last quarter).
- At that time, the company said that FY25 revenue would be $15- 25 million.
- In it 1Q25 preview, SES sighted the same revenue streams it had previously called out: materials. discovery for EV batteries, sales of its 2170 Li-ion cells into the drone space, and the beginning of the commercialization of its technology for BESS for data centers.
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