Waymo to launch autonomous ride-hailing in Singapore by 2028, its first foray into Southeast Asia

Phillip Securities stated that KTB will serve as the clearing house for the common rail ticket project, after the Ministry of Transport confirmed that from January 1, 2027 onward, rail commuters will use a common ticket fare system across all rail lines, all colors, and all routes at prices of 17 to 45 baht. The government will bear the cost of compensating passengers for the fare difference on journeys that actually exceed 45 baht, without directly reimbursing operators, and KTB will prepare the back-end system to manage the money and clear refunds of the difference to the public. This is seen as positive sentiment for KTB, but the main revenue expected is the fee for serving as clearing house, which is unlikely to be significantly high relative to previous forecasts. An additional benefit is low-cost liquidity from funds passing through the bank and user data from rail passengers that can be used to cross-sell other financial products. The brokerage maintains its 2026 profit forecast at 48.9 billion baht, up 1.4% year-on-year, and keeps its base price target at 46 baht. It expects a dividend of 2.10 baht per share for 2026, representing a dividend yield of 4.7%, and 2.21 baht per share for 2027, representing a dividend yield of 4.9%. Recommendation: accumulate.

Akio Sato, chairman of the Japan Automobile Manufacturers Association, said at a press conference in Tokyo on the 17th that the association aims to put core autonomous driving systems into practical use in some regions by 2028. He stressed the need for public-private cooperation to achieve this, and said the association will move quickly to build an information control platform that integrates systems for remotely monitoring autonomous vehicles and mechanisms for cars to receive pedestrian information from sensors and cameras on roads. Sato argued that eliminating traffic deaths and improving convenience should go hand in hand, and said the pace of development will be accelerated. The public and private sectors will also consider creating a framework to provide relief for victims and conduct accident investigations when accidents occur.

BEM shares rose 4.58% to 6.85 baht, up 0.30 baht, after Dao Securities maintained its Buy recommendation with a 9.00 baht target price based on sum-of-the-parts valuation. The broker said it holds a positive view following a group conference call with BEM, expecting electric train passenger volume in 2027 to potentially grow more than 10% year on year, supported by the common ticket policy, while the company is currently negotiating details with the government, particularly on cost subsidies. The company expects to begin seeing cost savings from bringing maintenance work on the Purple Line back in-house from the third quarter of 2026, with average cost savings estimated at 100 million baht per year, and in the fourth quarter of 2026 there may be a partial reversal of maintenance expenses as a one-time item. It also expects interest expenses in the second half of 2026 to remain low and steady, close to the second quarter of 2026. As for the SOE toll increase in December 2026, the company views the net impact as neutral and is in discussions with the Expressway Authority of Thailand on measures to mitigate the impact. Dao Securities maintained its 2026 net profit forecast at 3.9 billion baht, up 3% year on year, with third-quarter 2026 net profit preliminarily expected to expand year on year on lower interest expenses and Purple Line maintenance costs, and to grow quarter on quarter supported by seasonal travel factors. Catalysts include progress on the Double Deck project and the South Purple Line operating contract, as well as the common electric train ticket policy in early 2027, which should help lift passenger volume across the entire electric train system.