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CGS CIMB |
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OCBC Bank (OCBC SP) Call a friend
Virtual tie-up with Singtel can expand reach; maintain HOLD Media reports state that OCBC is in discussions with Singtel for a partnership in virtual banking. Access to Singtel’s largely mass-market subscriber base in Southeast Asia and strong positioning in Singapore should enable OCBC to target more relevant customer segments via virtual banking at lower acquisition costs than its own branch network. While this should help it bridge its returns gap with Singapore peers in operating income and particularly retail banking, we believe execution risks remain. Uncertainties surrounding potential M&As given its large, excess capital further muddy medium-term earnings visibility. HOLD and our multi-stage DDM (9.7% COE, 3% terminal) TP stays at SGD11.05. We prefer UOB for better regional integration and cautious loan book.
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CSE Global Firm flows and still-strong balance sheet
■ Following the 1H19 results, CSE said it is confident of a stronger earnings performance and sustained order intake in 2H19. ■ Post the three acquisitions YTD, CSE said it is still on the lookout for more value-accretive and strategic buys. ■ A stable business, strong balance sheet and dividend yield of c.6% make CSE one of our favourite small-cap stocks. Maintain Add and TP.
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UOB KH |
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ISOTeam (ISO SP) |
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