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CGS CIMB |
CGS CIMB |
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Grab Holdings Slower 2H25F EBITDA growth expected
■ We expect adj. EBITDA to fall 2% qoq in 2Q25F, mainly dragged by higher RCC. We also expect slower EBITDA growth in 2H25F on weaker spending. ■ We believe stringent cost optimisation, stronger ad revenue, and profitability of its financial service segment are potential upside catalysts. ■ We think the current share price has already priced in management’s double-digit GMV growth guidance for FY25F. ■ Downgrade to Hold as we expect yoy adj. EBITDA growth to slow in 2H25F vs. 1H25F, especially for Deliveries segment on weaker consumer spending.
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Banks Upward reversal of LLP from the bottom
■ We are projecting 3-4% yoy core net profit growth for banks in 2Q25F, underpinned by growth of 2-3% yoy in NII and c.6% in NOII. ■ We are not overly concerned about the potential qoq upturn in LLP in 2Q25F as the 2Q25F credit charge-off rate is likely to remain low at c.15bp. ■ Reiterate Overweight on banks given our expectations of ongoing writebacks in management overlay and rising dividend payout ratios.
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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Telecommunications (ST SP) Robust Earnings And Value Delivery To Shareholders
In line with Singtel’s ST28 growth plan, the group continues to improve its ROIC through better core operational performance while doubling down on its future growth drivers, NCS and Nxera. Additionally, the asset monetisation pipeline has been raised from S$6b to S$9b, offering sustainable 3-6 cents/share VRD over FY26-28. We believe this is a conservative estimate, with additional asset monetisation from regional associates and non-core assets. Maintain BUY. Target price of S$4.58.
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Automobile – China Weekly: PV Sales Down 30% wow As Promotions End
China’s PV insurance registrations grew 16.9% yoy but fell 30.4% wow in the 27th week of 2025 due to the roll-back of promotional discounts, in line with expectations. On 9 July, BYD announced L4 smart parking and promised to take responsibility for any losses incurred; Geely unveiled the ground-breaking SEA-S platform and its new flagship hybrid SUV, Zeekr 9X. Chongqing recently announced a new EV subsidies policy. Maintain MARKET WEIGHT. Top BUYs: CATL, Geely and Tuopu.
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| LIM & TAN | LIM & TAN |
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17LIVE Ltd ($1.09, down 0.01) announced that its proprietary SkyEye Monitoring System (“SkyEye”) detected and removed 29,768 content violations across Taiwan in 2024. This underscores the Company’s robust digital governance capabilities and ongoing efforts to combat misinformation, inappropriate content, and illegal activity on its platform. At its last traded price of $1.09, 17 Live is capitalized at $197mln and trades at forward FY25/FY26 blended consensus PE ratio of 25x (about $8mln profit estimated by Bloomberg consensus). While valuations are not cheap as compared to the STI’s 12-13x PE, we note that 17 Live share price will likely be supported by its ongoing share buy back program and consensus 1 year target price of $1.30/share. (it has so far bought back 1.39mln shares representing 7.6% of its mandate).
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At 95.5 cents, Grand Venture Tech is capitalized at $322mln and despite its expected 25% growth for 2025, forward PE is around 26x which seems fair relative to its growth potential. Price to book is 2.5x while dividend yield is less than 1%. While the offer price of 94 cents is 11.9% above the share price prior to the possible transaction announcement on Jun 1, it represents a small discount to the share price prior to the trading halt yesterday. With 64.24% of shareholders providing irrevocable undertakings, and 75% needed for the scheme to pass, the company needs another 10.76% of shareholders to join the approving bandwagon for the scheme to be approved. Given its high valuations and with majority consisting 64.24% of major shareholders voting in favour of the scheme, we think chances are likely good for the scheme to go through. |
