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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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CapitaLand Investment Limited Transaction activity picking up
▪ 9M24 revenue of S$2.1bn (+1% YoY) was slightly below our estimates, forming 70% of our FY24e forecast. Fee Income-related Business (FRB) revenue grew 6% YoY from stronger private funds management (+14% YoY) and commercial management (+14% YoY). In contrast, Real Estate Investment Business (REIB) revenue fell 2% from divestments in India, Australia and France. ▪ With S$4.6bn of divestments YTD, CLI has exceeded its annual S$3bn divestment target. Total Funds Under Management (FUM) rose by c.S$2bn to S$102bn following the divestment of ION Orchard to CICT and capital raised from new partner Mitsui O.S.K. Lines. YTD deployment of private funds rose 43% YoY to S$2.1bn, with three new fund launches in 3Q24.
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DBS Group Holdings Ltd Volatility spurs trading income
▪ 3Q24 adjusted PATMI of S$3.03bn was above our estimates due to higher fee income and trading income. 9M24 adjusted PATMI is 83% of our FY24e forecast. 3Q24 DPS rose 23% YoY to 54 cents. ▪ NII rose 3% YoY from interest earning asset growth while NIM dipped 8bps to 2.11%. Non-interest income growth of 28% was led by WM fees and trading income. DBS maintained its FY24e guidance with PATMI growth of mid to high-single digit, while providing FY25e guidance for NII at 2024 levels and non-interest income growth of highsingle digit. PATMI to drop below 2024 levels.
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UOB KAYHIAN |
UOB KAYHIAN |
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DBS Group Holdings (DBS SP) 3Q24: Double Down On Capital Management
DBS achieved a record net profit of S$3,027m in 3Q24 (+15% yoy), driven by a surge in wealth management fees (+55% yoy) and markets trading income (doubled yoy). NPLs declined 8% qoq due to sizeable repayment and recoveries. The Board established a new share buyback programme of S$3b. DBS will continue to return surplus capital to shareholders through step-ups in regular quarterly dividends, special dividends and share buybacks. Maintain BUY. Target price: S$46.95.
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Genting Singapore (GENS SP) 3Q24: Unexpected Setbacks
GENS’ 3Q24 results reflect deteriorating gaming revenue on the back of weaker gaming volumes in both the VIP and mass segments. The VIP win rate was also exceptionally low in the quarter, fully offsetting the non-gaming segment’s resilient improvement. Beyond this set of weak results, however, we remain convinced GENS offers meaningful capital upside, given its steep valuations discount and commendable dividend yield. We cut our 2024-25 earnings. Maintain BUY with a lower target price of S$1.12.
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