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UOB KAYHIAN |
UOB KAYHIAN |
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Banking – Singapore
4Q24 Results Preview: All Eyes On Capital Management
4Q24 is characterised by stable NIM and seasonally softer non-interest income, such as wealth management fees and net trading income. We expect net profit of S$2,535m for DBS (+12% yoy, -16% qoq) and S$1,748m for OCBC (+8% yoy, -11% qoq). We expect DBS to declare higher quarterly dividend of 60 S cents and special dividend of 50 S cents. We expect OCBC to raise interim dividend by 9.5% yoy to 46 S cents. Maintain OVERWEIGHT. BUY OCBC (Target: S$20.80), followed by DBS (Target: S$46.50).
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Automobile – China Weekly: PV Sales Down 10% yoy But Up 8.5% wow; EVs Gain On Subsidy Rollout
China’s PV insurance registrations dropped 10% yoy and grew 8.5% wow in the second week of 2025, with major EV brands posting yoy/wow sales growth due to policy rollout. The 2025 vehicle trade-in subsidy policy covers more potential buyers vs 2024. Geely Galaxy L7 EM-i leads the A-segment PHEV SUV market in sales. CATL remains the top player in the China power battery market with a 44.8% share in 2024. Maintain MARKET WEIGHT. Top BUYs: Geely, Fuyao, CATL and Desay SV.
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MAYBANK KIM ENG |
LIM & TAN |
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Malaysia Oil & Gas Revisiting the OSV sub-segment
Maintain NEUTRAL on OSV sub-segment We visited Keyfield’s (KEYFIELD MK, CP: MYR2.39, Not Rated) Wisdom and Falcon OSVs, which are undergoing periodical maintenance in the Labuan Shipyard & Engineering (LSE) yard. Post-visit, we remain NEUTRAL on the OSV sub-segment operating in the MY O&G space as we think that the OSV DCR supercycle may be coming to an end soon. While we think that DCRs will remain elevated due to vessel supply tightness, the lack of certainty on DCR growth going into 2025E may shy investors away from this space. In the O&G sector, we are selective and prefer the i) defensive mid-stream space; and ii) FPSO names. Dialog and BArmada are our top BUYs.
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Mapletree Logistics Trust / MLT ($1.27, up 1 cent) has entered into a Purchase Agreement with an unrelated third party for the proposed divestment of 8 Tuas View Square in Singapore (“the Property”) at a sale price of S$11.18 million. The proposed divestment is in line with the Manager’s efforts to rejuvenate its portfolio through selective divestments of assets that are no longer aligned with its strategy. Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential. At $1.27, MLT is capitalized at $6.4 billion and trades at 1x book and 6.3% yield. We have an “Accumulate” rating on MLT given its decent yield and $1.56 consensus 1 year target price, implying potential 1 year return of around 23%. Downside risks also seem limited given that it is trading near its Covid-19 lows. |
| LIM & TAN | DBS RESEARCH |
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City Developments Limited / CDL ($5.05, down 1 cent) announced that it has achieved total divestments of over S$600 million as part of its capital recycling initiative. CDL’s market cap stands at S$4.5bln and currently trades at 16.5x forward PE and 0.5x PB, with a dividend yield of 1.6%. Consensus target price stands at S$6.98, representing 38% upside from current share price. We like CDL’s monetization efforts to realize it’s RNAV of $17.17, with proceeds that can either be reinvested or redistributed to shareholders via a special dividend. Trading at undemanding valuations, we continue to maintain a BUY recommendation on CDL.
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Summary of Report: Singapore Property Market OutlookKey Takeaways:
Outlook for 2025:
Investment Picks:
Conclusion: The market is expected to stabilize, with a focus on volume over price growth. Cooling measures are unlikely in the near term, reducing overhang on agencies and developers. |
