|
CGS CIMB |
CGS CIMB |
|
United Overseas Bank Administering a healthy dose of caution
■ During its analyst briefing, UOB shared ongoing trade tensions between US and its trading partners contributed to uncertainty of its FY25F growth targets. ■ While credit quality remained healthy in 1Q25, UOB recognised 16bp in GPs pre-emptively to strengthen its provision coverage. ■ We reiterate our Add call with a lower TP of S$38.60 after lowering our FY25F-27F EPS by 4.2-4.9% to reflect a likely stagnation of profit in FY25F.
|
Frasers Logistics & Commercial Trust Weak 1HFY25, but room for upside from balance sheet strength
■ 1HFY9/25 DPU of 3 Scts fell short of expectations, at 44.8% of our FY25F. ■ 2QFY9/25 rental reversion averaged +2.5%, even as portfolio committed occupancy slipped 40bp qoq to 93.9%. ■ Maintain Add rating, with a lower DDM-based TP of S$1.11 as we cut DPU.
|
|
MAYBANK KIM ENG |
MAYBANK KIM ENG |
|
AIMS APAC REIT (AAREIT SP) Stable headline
Growing distribution, mixed operating trend AAREIT reported 4Q DPU of SGD2.53c, +5.4% QoQ/+8.1% YoY. FY25 DPU of SGD9.6 was +2.6% YoY. Resilient operating performance anchored growth. The trend of positive reversion and occupancy slippage is unchanged. NAV fell 6.1% YoY due to decline in portfolio value and FX. Debt metrics were stable. We trim DPU due to lower capital distribution and lower DDM-based TP to SGD1.2. Maintain HOLD.
|
United Overseas Bank (UOB SP) Operating in uncertainty
Strong balance sheet. Limited growth visibility. HOLD UOB’s 1Q25 earnings were ahead of MIBG and in-line with Street. Operating metrics were good, but may not be reflective of what is to come given a backdrop of extremely unpredictable US policy. Nevertheless, the Group has displayed strong execution during past downturns. Plus it has strong balance sheet liquidity and is committed to announced capital returns – bolstering yields. These can soften downside risks. We raise TP to SGD35.21. With limited growth visibility, maintain HOLD.
|
| LIM & TAN | LIM & TAN |
|
DBS’s ($42.76, down 0.23) first-quarter profit before tax at record SGD 3.44 billion as total income grows 6% to new high of SGD 5.91 billion; net profit at SGD 2.90 billion with ROE at 17.3% DBS Group achieved record profi t before tax of SGD 3.44 billion in first-quarter 2025, slightly higher than a year ago, as total income reached a new high from robust business growth. General allowances of SGD 205 million were taken as a prudent measure to strengthen GP reserves in light of recent developments that have added to macroeconomic and geopolitical uncertainty. Net profi t was 2% lower at SGD 2.90 billion due to higher tax expenses from the implementation of the 15% global minimum tax, coming in line with expectations. DBS performed in line with expectations and we expect normalized dividend of $2.40/share plus capital return of 60 cents per share, giving $3 returns for FY2025 and an attractive yield of 7%. Forward PE is 11x while consensus target price is $45. We maintain an “Accumulate” rating on DBS.
|
Frasers Logistics and Commercial Trust ($0.865) announced FLCT’s results for the six month period ended 31 March 2025 and reported revenue of S$232.3 million and Adjusted Net Property Income of S$161.3 million for 1HFY25, represenƟ ng increases of 7.5% and 1.6% respectively, from S$216.0 million and S$158.7 million in the first half of FY2025 (“1HFY25”). FLCT’s market cap stands at S$3.3bln and currently trades at 0.8x PB and 6.5% annualised yield. Consensus target price stands at S$1.06, representing 22.5% upside from current share price. We continue to have an Accumulate rating on FLCT given its attractive stable dividend yields coupled with healthy gearing. FLCT should also benefit from potential cuts in interest rates moving forward into FY25 |
