reports
- Jonathan Koh
- Jonathan Koh
Singapore Banking - 1Q24 Results Preview: Softer NIM But Resilient Ass...
The steep decline in 3M HIBOR could shave off 4-6bp from NIM in 1Q24 as Hong Kong dollar-denominated loans accounted for 11% and 13% of total loans respectively for DBS and OCBC. Singapore banks are expected to deliver steady net profits of S$2,486m for DBS (-3% yoy but +10% qoq) and S$1,824m for OCBC (-3% yoy but +12% qoq) in 1Q24, supported by resilient asset quality. Maintain OVERWEIGHT. Our top picks are DBS (BUY/Target: S$43.25) followed by OCBC (BUY/Target: S$18.15).
- Adrian Loh Tzum Yung
- Heidi Mo Jinghui
- Llelleythan Tan Tan
- Singapore Research Team
Singapore Daily: Monday, April 15, 2024
KEY HIGHLIGHTS Strategy The Impact Of Escalating Middle East Tensions A fluid situation with oil prices the key worry. Small/Mid Cap Highlights BRC Asia (BRC SP/BUY/S$1.94/Target: S$2.42) 1QFY24: Strong results as construction demand recovers. TRADERS’ CORNER Aztech Global (AZTECH SP): Trading BUY Isdn Holdings (ISDN SP): Trading BUY
G13 GENTING SINGAPORE
FCT FRASERS CENTREPOINT TRUST
CC3 STARHUB LTD
S63 SINGAPORE TECHNOLOGIES ENGINEERING LTD
D05 DBS GROUP HOLDINGS LTD
C09 CITY DEVELOPMENTS LIMITED
S68 SINGAPORE EXCHANGE LTD.
V03 VENTURE CORPORATION LIMITED
U96 SEMBCORP INDUSTRIES LTD.
F34 WILMAR INTERNATIONAL LIMITED
BN2 VALUETRONICS HOLDINGS
B8O YANGZIJIANG SHIPBUILDING (HOLDINGS) LTD.
1820 ABDULMOHSEN AL HOKAIR GROUP FOR TOURISM AND DEVELOPMENT CO CJSC
AJBU KEPPEL DC REIT
C52 COMFORTDELGRO CORPORATION LIMITED
C6L SINGAPORE AIRLINES LTD.
Z74 SINGAPORE TELECOMMUNICATIONS LIMITED
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
Y92 THAI BEVERAGE PUBLIC CO. LTD.
BN4 KEPPEL CORPORATION LIMITED
SE SEA ADS
SATS SP SATS LTD.
CDREIT CDL HOSPITALITY TRUSTS
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
FEHT FAR EAST HOSPITALITY TRUST
NETLINK NETLINK NBN TRUST
SIE SIA ENGINEERING CO LTD
BAL BUMITAMA AGRI LTD
PREIT PARKWAYLIFE REAL ESTATE
SPOST SINGAPORE POST LTD
MINT MAPLETREE INDUSTRIAL TRUST
RFMD RAFFLES MEDICAL GROUP LTD
SASSR SASSEUR REAL ESTATE INVESTMENT TRUST
MUST MANULIFE US REAL ESTATE INV
BRC BRC ASIA LTD
TXG 10X GENOMICS INC CLASS A
FEH FOOD EMPIRE HOLDINGS LTD
UHU UNITED HAMPSHIRE US REIT
FRKN FRENCKEN GROUP LTD
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
FLT FRASERS LOGISTICS & COMMERCIAL TRUST
KORE KEPPEL PACIFIC OAK US REIT
DCREIT DIGITAL CORE REIT
ADSE ADS TEC ENERGY PLC
CLI CAPITALAND INVESTMENT LTD
MPACT MAPLETREE PAN ASIA COMMERCIAL TRUST
BCOW 1895 BANCORP OF WISCONSIN INC
CLAS CAPITALAND ASCOTT TRUST
CLAR CAPITALAND ASCENDAS REIT
PRIME PRIME ROAD POWER PUBLIC CO LTD
STM SEATRIUM LTD
Z29 029 GROUP SE
ACG ACG ACQUISITION COMPANY LIMITED
- Jonathan Koh
- Keith Wee Teck Keong
- Posmarito Pakpahan
- Tanaporn Visaruthaphong
ASEAN Banks – ASEAN Banks: Quarterly Update
OVERWEIGHT on Indonesia banks as they offer the highest earnings growth in 2024/25 and benefit from the recent rally in commodity prices. We like Singapore banks for their attractive dividend yields. Our top BUYs are DBS (Target: S$43.25), CIMB (Target: RM7.33), SCB X (Target: Bt130) and BMRI (Target: Rp7,900). We also like OCBC (Target: S$18.15), RHB (Target: RM6.18) and BBNI (Target: Rp6,300) as attractive yield plays.
1023 CIMB GROUP HOLDINGS BHD
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
D05 DBS GROUP HOLDINGS LTD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
TISCO TISCO FINANCIAL GROUP
BMRI PT BANK MANDIRI (PERSERO) TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
SCB SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
BBCA PT BANK CENTRAL ASIA TBK
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
PBBANK PUBLIC BANK BERHAD
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABMB ALLIANCE BANK MALAYSIA BHD
ABANK AFFIN BANK BHD
TTB TMBTHANACHART BANK PCL
BBTN BANK TABUNGAN NEGARA PERSERO TBK PT
BBNI BANK NEGARA INDONESIA PERSER
BBYB BANK NEO COMMERCE
BIMB BANK ISLAM MALAYSIA BHD
BTPS BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH TBK PT
MAYBANK MALAYAN BANKING BHD
- Jonathan Koh
- Jonathan Koh
Singapore Banking - Higher For Slightly Longer
We anticipate two rate cuts in 2H24 as opposed to three stipulated by the Fed’s dot plot. Domestic interest rates in Singapore are likely to remain elevated for slightly longer but will start receding in 4Q24, in tandem with rate cuts in the US. Maintain OVERWEIGHT. We raised our 2025 earnings forecasts for DBS by 6% and OCBC by 5%. DBS and OCBC provide 2025 dividend yields of 6.8% and 6.5% respectively. BUY DBS (Target: S$43.25), followed by OCBC (Target: S$18.15).
- Jonathan Koh
Singapore Banking - 4Q23 Round Up: Slower Growth Compensated By Higher...
Banks delivered resilient earnings in 4Q23 (DBS: -3% yoy, OCBC: +12% yoy) with low single-digit growth in net interest income and benign asset quality. DBS and OCBC have increased their final dividend by 12.5% and 5% respectively to 54 S cents and 42 S cents. DBS has also proposed a 1-for-10 bonus issue. DBS and OCBC provide attractive 2024 dividend yields of 6.5%. BUY DBS (Target: S$40.75), followed by OCBC (Target: S$17.22). Maintain MARKET WEIGHT.
- Benjaphol Suthwanish
- Carol Dou Xiao Qin
- Chong Lee Len
- Jack Lai Yuan Khai
- Jo Yee Ng
- Jonathan Koh
- Julia Pan Mengyao
- Llelleythan Tan Tan
- Ming San Soong
- Nurul Nazira Binti Abdullah
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
- Tanaporn Visaruthaphong
Regional Morning Notes - Thursday, February 08, 2024
GREATER CHINA Results Alibaba Group (9988 HK/BUY/HK$74.90/Target: HK$100.00): 3QFY24: Increased shareholder return plan; pivoting focus to reignite e-commerce growth. Yum China Holdings Inc (9987 HK/NOT RATED/HK$332.80): 4Q23: Earnings beat; expect flattish same-store sales and stable core profit in 1Q24. Update Aier Eye Hospital Group Co (300015 CH/BUY/Rmb13.97/Target: Rmb21.00): Expects solid business expansion despite weak economic conditions. MALAYSIA Results Carlsberg Brewery Malaysia (CA...
- Chong Lee Len
- Jonathan Koh
- Llelleythan Tan Tan
Singapore Daily - Thursday, February 08, 2024
KEY HIGHLIGHTS Results DBS Group Holdings (DBS SP/BUY/S$32.45/Target: S$39.20): 4Q23: Accelerating pace of returning surplus capital to shareholders. NetLink NBN Trust (NETLINK SP/BUY/S$0.845/Target: S$1.01): 9MFY24: Stable results as connections grow. TRADERS’ CORNER Riverstone Holdings (RSTON SP): Trading BUY Propnex (PROP SP): Trading BUY
- Jonathan Koh
DBS Group Holdings (DBS SP) - 4Q23: Accelerating Pace Of Returning Sur...
DBS’ 4Q23 net profit of S$2,269m (-3% yoy) met our expectation. NIM narrowed 6bp qoq and net interest income grew at a single-digit rate of 4.7% yoy. Asset quality was stable and credit cost low at 11bp. 4Q23 DPS increased by 6 S cents to 54 S cents. Quarterly DPS is expected to remain at 54 S cents in 2024 after the 1-for-10 bonus issue. Management will continue to review DBS’ capital structure in view of returning more surplus capital to investors. Maintain BUY. Target price: S$39.20.
- Benjaphol Suthwanish
- Chong Lee Len
- Damon Shen
- Jacquelyn Yow Hui Li
- Jieqi Liu
- Jonathan Koh
- Keith Wee Teck Keong
- Kitpon Praipaisarnkit
- Leow Huey Chuen
- Posmarito Pakpahan
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Tham Mun Hon
- Wei Xiang Ku
Regional Morning Notes - Monday, January 15, 2024
REGIONAL Sector Banks: ASEAN Banks: quarterly update. Plantation: Maintain 2024 CPO ASP at RM4,200/tonne, with pricing expected to be higher in 1H24. Accumulate Malaysia upstream players and companies with better-than-peers production growth. GREATER CHINA Economics Inflation: Dec 23 CPI inflation beat expectations but deflationary pressure remains. Money Supply: Dec 23 M2 and credit growth slowed, expect further monetary easing. Trade: Dec 23 trade numbers beat expectations; auto exports conti...
- Jacquelyn Yow Hui Li
- Jonathan Koh
- Keith Wee Teck Keong
- Leow Huey Chuen
- Posmarito Pakpahan
Singapore Daily - Monday, January 15, 2024
KEY HIGHLIGHTS Sector ASEAN Banks: ASEAN Banks: quarterly update. Regional Plantation: Maintain 2024 CPO ASP at RM4,200/tonne, with pricing expected to be higher in 1H24. Accumulate Malaysia upstream players and companies with better-than-peers production growth. TRADERS’ CORNER Sembcorp Industries (SCI SP): Trading BUY Top Glove Corp (TOPG SP): Trading BUY
AALI ASTRA AGRO LESTARI
D05 DBS GROUP HOLDINGS LTD
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
F34 WILMAR INTERNATIONAL LIMITED
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
SOP SARAWAK OIL PALMS BERHAD
LSIP PP LONDON SUMATRA INDONES PT
BAL BUMITAMA AGRI LTD
KIML KIM LOONG RESOURCES BHD
IOI IOI CORP BHD
KLK KUALA LUMPUR KEPONG BHD
SDPL SIME DARBY PLANTATION BHD
GENP GENTING PLANTATIONS BHD
HAPL HAP SENG PLANTATIONS HOLDINGS BHD
TAPG TRIPUTRA AGRO PERSADA PT
- Jonathan Koh
- Keith Wee Teck Keong
- Posmarito Pakpahan
ASEAN Banks – ASEAN Banks: Quarterly Update
Interest rates have peaked and entered a downcycle. Indonesian banks are the biggest beneficiaries of lower interest rates and have the highest earnings growth in 2024 and 2025. Our top BUYs are OCBC (Target: S$16.85), CIMB (Target: RM6.65), SCB X (Target: Bt124) and BBNI (Target: Rp6,300). Yield plays, such as DBS (Target: S$41.65), RHB (Target: RM6.35), KTB (Target: Bt21.50) and BMRI (Target: Rp6,500), are attractive in an environment of lower bond yields.
1023 CIMB GROUP HOLDINGS BHD
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
D05 DBS GROUP HOLDINGS LTD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
TISCO TISCO FINANCIAL GROUP
BMRI PT BANK MANDIRI (PERSERO) TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
SCB SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
BBCA PT BANK CENTRAL ASIA TBK
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
PBBANK PUBLIC BANK BERHAD
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABMB ALLIANCE BANK MALAYSIA BHD
ABANK AFFIN BANK BHD
TTB TMBTHANACHART BANK PCL
BBTN BANK TABUNGAN NEGARA PERSERO TBK PT
BBNI BANK NEGARA INDONESIA PERSER
BBYB BANK NEO COMMERCE
BIMB BANK ISLAM MALAYSIA BHD
BTPS BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH TBK PT
MAYBANK MALAYAN BANKING BHD
- Jonathan Koh
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
AJBU KEPPEL DC REIT
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
CDREIT CDL HOSPITALITY TRUSTS
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
FEHT FAR EAST HOSPITALITY TRUST
PREIT PARKWAYLIFE REAL ESTATE
MINT MAPLETREE INDUSTRIAL TRUST
KORE KEPPEL PACIFIC OAK US REIT
MPACT MAPLETREE PAN ASIA COMMERCIAL TRUST
CLAS CAPITALAND ASCOTT TRUST
CLAR CAPITALAND ASCENDAS REIT
- Jonathan Koh
Singapore Banking - The Interest Rate Cycle Has Reversed Course
Based on the dot plot, the Fed Funds Rate is expected to ease 75bp in 2024 and 100bp in 2025. The interest rate downcycle is facilitated by a decline in inflation as supply-side distortions are normalised. The interest rate downcycle has negative impact on Singapore banks’ NIM and net interest income. Downgrade to MARKET WEIGHT. Our top BUY is OCBC (Target: S$16.85) for its new dividend policy with payout ratio at 50%, focus on ASEAN and defensively low P/B of 1.06x.
- Jonathan Koh
Banking - 3Q23 Round-up: Building Buffers To Weather Heightened Geopol...
Banks delivered resilient earnings in 3Q23 (DBS: +16% yoy, OCBC: +21% yoy) with NIM expansion yoy, enhanced cost discipline and benign asset quality. Geopolitical uncertainties have increased. Singapore banks can better weather the volatilities due to strong capital adequacy and stable asset quality. DBS and OCBC provide attractive 2024 dividend yields of 6.0% and 6.2% respectively. BUY OCBC (Target: S$17.35), followed by DBS (Target: S$44.28). Maintain OVERWEIGHT.
- Adrian Loh Tzum Yung
- Chong Lee Len
- Desmond Chong Chee Wai
- Heidi Mo Jinghui
- Jonathan Koh
- Kwanchai Atiphophai
- Llelleythan Tan Tan
- Roy Chen Chengzhi
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Wei Xiang Ku
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, November 07, 2023
GREATER CHINA Sector Commodities: Weekly: Easing fears of further rate hikes supporting metals prices. INDONESIA Results Mayora Indah (MYOR IJ/BUY/Rp2,620/Target: Rp3,200): 3Q23: Boom! NPAT grows 87.1% yoy, exceeding the street’s expectation. MALAYSIA Update Press Metal Aluminium Holdings (PMAH MK/BUY/RM4.88/Target: RM5.50): Anticipate growth to resume in 2024 driven by a favourable supply-demand dynamics and a more robust contribution from VAPs. Tenaga Nasional (TNB MK/HOLD/RM9.97/Target: RM1...
- Adrian Loh Tzum Yung
- Chong Lee Len
- Heidi Mo Jinghui
- Jonathan Koh
- Llelleythan Tan Tan
- Roy Chen Chengzhi
Singapore Daily - Tuesday, November 07, 2023
KEY HIGHLIGHTS Results DBS Group Holdings (DBS SP/BUY/S$33.29/Target: S$44.28): 3Q23: Resilient NIM and net profit; pondering capital management. NetLink NBN Trust (NETLINK SP/BUY/S$0.84/Target: S$1.01): 1HFY24: Stable results, upcoming IMDA review expected by end-3QFY24. Raffles Medical Group (RFMD SP/HOLD/S$1.07/Target:S$1.15): 3Q23: Weaker performance as margin pressure builds. Downgrade to HOLD. SIA Engineering (SIE SP/BUY/S$2.37/Target: S$2.67): 1HFY24: Results in line; strong underlyin...
- Jonathan Koh
DBS Group Holdings (DBS SP) - 3Q23: Resilient NIM And Net Profit; Pond...
DBS’ 3Q23 net profit of S$2,593m (+16% yoy) was slightly above expectations. NIM expanded 29bp yoy and 3bp qoq, while net interest income grew 16% yoy. Other non-interest income expanded by a robust 21% yoy to S$845m. Quarterly DPS was maintained at 48 S cents. Management expects ROE to maintain above 17% in 2024. DBS will consider capital management by potentially returning surplus capital of S$3b or S$1.20 per share to shareholders. Maintain BUY. Target price: S$44.28.
- Jonathan Koh
Singapore Daily - Wednesday, October 18, 2023
KEY HIGHLIGHTS Sector Banking: 3Q23 results preview: Resilient NIM and stable asset quality. Results Keppel REIT (KREIT SP/BUY/S$0.84/Target: S$1.06): 3Q23: Good progress in backfilling vacant space in Australia and Japan. TRADERS’ CORNER Best World International (BEST SP): Trading BUY Hongkong Land Holdings (HKL SP): Trading BUY
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