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UOB KAYHIAN |
OCBC GROUP RESEARCH |
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DBS Group Holdings (DBS SP) 4Q25: Asset Quality Hit Cushioned By Ample General Provisions
Highlights • Wealth management and loans-related fees saw a significant sequential pullback of 19% and 25% qoq respectively due to seasonal weakness. Specific provisions for chunky Hong Kong real estate exposure were cushioned by write-backs in general provisions. • NIM compression has moderated by a smaller 3bp qoq in 4Q25 and exit NIM was stable at 1.92% in Jan 26. Management expects two Fed rate cuts in 2026 but sees firmer SORA at 1.25%. • Maintain BUY. Target price: S$66.75.
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Sheng Siong Group (SSG SP) – Company Update (9 Feb 2026)Rating: HOLD (downgraded from Buy) Key Highlights
Why the Downgrade to HOLD
Outlook
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LIM & TAN |
LIM & TAN |
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Seatrium ($2.09, up 3 cents) announces that its wholly-owned subsidiary, Jurong Shipyard Pte Ltd (“JSPL”), has commenced arbitration proceedings against Petrobras Netherlands B.V. (“PNBV”). The arbitration relates to a legacy contract for the conversion of the P-54 FPSO (the “P-54 Contract”), which was entered into between JSPL and PNBV in June 2004. Seatrium’s market cap stands at S$7.1bln and currently trades at 21x PE and 1.1 PB, with a dividend yield of 1%. Consensus target price stands at S$2.66, representing 27.2% upside from current share price. We continue to maintain our “Accumulate on Weakness” recommendation on Seatrium.
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The Ascott Limited (Ascott), the wholly owned lodging business unit of CapitaLand Investment / CLI ($3.16, up 0.03) signed a record 19,000 units across 102 properties in 2025, marking 27% year-on-year growth in new signings. Its asset-light expansion was led by higher-fee segments such as resorts, supported by accelerating franchise momentum and strong conversion activity. Ascott entered more than 10 new cities across Asia Pacific and Europe, growing its global footprint to over 230 cities in more than 40 countries. The company now operates and has under development more than 1,000 properties with over 176,000 units globally. At CLI’s last traded price of $3.16, it is capitalized at $15.8bln and trades at 24x PE 4% yield and 1.3x book. While we continue to like CLI’s rising recurring profit base load and it being a mothership of Singapore’s REIT sector (being the mothership of the Capitaland and Ascendas group of REITs), the stock has risen significantly by 22% since we added it into our Alpha stock pick list in Nov’25 and it has also risen 17% this year alone, way outperforming the STI’s 6-7% rise. With valuations looking quite fair and consensus 1 year target price of $3.30 implying only a small 5% upside from here, we are downgrading our call on CLI to a HOLD. |
| DBS GROUP RESEARCH | |
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Zijin Gold International Pure-Play gold opportunity
Investment Overview A prominent pure-play gold miner, consolidating significant overseas gold assets from Zijin Mining Group. Zijin Gold International, a spin-off of the overseas gold assets of Zijin Mining, listed via an IPO in Hong Kong on 30 September. The key gold mines, acquired by the parent company over the last two decades, were strategically consolidated under Zijin Gold International, positioning it as a significant global gold miner. As we expect the average gold prices to rise 42% and 9% in 2025 and 2026, the company will attract investors as prominent pure-gold player.
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