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UOB KAYHIAN |
UOB KAYHIAN |
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DBS Group Holdings (DBS SP) 1Q25: Wealth Management Leading The Way
DBS achieved a net profit of S$2,897m in 1Q25 (down 2% yoy), driven by a surge in wealth management fees (+35% yoy) and growth in net interest income (+5% yoy). Management sees its overlay for general provisions of S$2.6b as adequate. DBS is committed to returning excess capital of S$8b to shareholders, comprising capital return dividend of S$5b (15 S cents per quarter to be paid over three years in 2025-27) and share buyback of S$3b. Maintain HOLD. Target price: S$40.90.
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Riverstone Holdings (RSTON SP) 1Q25: Facing Near-term Headwinds; Downgrade To HOLD
Riverstone’s 1Q25 earnings of RM56m (-22% yoy, -19% qoq) missed expectations, impacted by higher raw material costs and unfavourable forex fluctuations. Interim dividend was reduced by 25% yoy to 3.0 sen. While volume growth remained strong, healthcare ASPs declined by 5-8% qoq. Operational ramp-up has been delayed to Jul 25 due to gas supply constraints. Given these headwinds, we downgrade Riverstone to HOLD with a 29% lower target price of S$0.82.
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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Lendlease Global Commercial REIT JEM rental reversion of 13%
• While no financials were provided for 3Q25, LREIT reported sound operating metrics for its Singapore assets, with retail rental reversion achieving +10.4% and JEM’s office rental review concluded at a 13% increase. We expect rental reversion to remain at high singledigit for 4Q25.
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United Overseas Bank Limited Stashing provisions under the mattress
▪ 1Q25 earnings of S$1.5bn were below our estimates from lower-than-expected NII and higher provisions. 1Q25 PATMI was 22% of our FY25e forecast.
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| CGS CIMB | CGS CIMB |
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Lendlease Global Commercial REIT Portfolio occupancy stable qoq in 3QFY25
■ LREIT’s portfolio take-up stands at 92.1% at end-3QFY35, underpinned by robust retail occupancy of 99.5%. ■ It plans to adopt active asset and capital management to lower gearing level. ■ Reiterate an Add rating with an unchanged DDM-based TP of S$0.69.
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DBS Group Confident guidance amidst uncertain outlook
■ At its analyst briefing held on the morning of 8 May 25, DBS reaffirmed its FY25F guidance of flat yoy PBT despite rising global economic uncertainty. ■ We also think that DBS’s management overlay of c.S$2.6bn of its S$4.16bn in GPs as of end-1Q25 is ample enough to cater to potential ‘stress scenario’. ■ Its excess capital of c.S$7.73bn as of 1Q25 could also support a more extensive capital return policy sustainably between FY25-27F, in our view. ■ Upgrade to Add with higher TP of S$47.90 as we see DBS’s capital return initiative improving yield attractiveness while lifting its long-term ROE.
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