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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Exchange Limited Dividends disappoint despite earnings surge
▪ 1HFY25 revenue of S$682mn and earnings of S$340mn were above our estimates, with 1HFY25 revenue and PATMI at 53%/55% of FY25e. The variance came from higher-thanexpected Equities - Cash and - Derivatives revenue. 1HFY25 DPS increased by 6% YoY to 18 cents (1HFY24: 17 cents), but the dividend payout ratio declined to 57% (1H24: 65%)
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Lendlease Global Commercial REIT (LREIT SP) 1HFY25: Resilient Contributions From Singapore; Upside From Office Block At Jem
Rental reversion was stable in the low teens for Jem but eased slightly to high single digits for 313@Somerset. Occupancy at Building 3 of Sky Complex improved to 31% after securing two new tenants. Rent review for lease with MND for the office block at Jem is in the final stage and should provide rental uplift in the low teens. The multifunctional event space at the Grange Road car park is expected to complete in 2H26. LREIT provides FY25 distribution yield of 7.0%. Maintain BUY. Target price: S$0.72.
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UOB KAYHIAN |
CGS CIMB |
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Wilmar International (WIL SP) 4Q24 Results Preview: Set To Recover qoq, But China Operations Remain Lacklustre
Wilmar will be releasing its 2H24 results on 20 Feb 25 after trading hours. We estimate 4Q24 core net profit at US$330m-340m and full-year core net profit at US$1.14b-1.15b, which is 3-4% lower than our forecast and 9-10% lower than consensus expectation. We expect AWL to become a subsidiary from FY26, as the agreement condition has been fulfilled. Maintain HOLD with a higher target price of S$3.18 (previously S$3.00) on a modest consumer sentiment outlook in China.
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ST Engineering Ending the year on a high
■ STE announced solid 4Q24 order wins of S$4.3bn (+37% yoy), led by strong contribution from its Defence and Aerospace units, while USS was decent. ■ We expect 2H24F net profit at S$366m (+9% hoh, +24% yoy), driven mainly by double-digit EBIT growth (+15% yoy) and lower finance expenses. ■ Reiterate Add. Our TP remains unchanged at S$5.30.
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| CGS CIMB | MAYBANK KIM ENG |
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ST Engineering Ending the year on a high
■ STE announced solid 4Q24 order wins of S$4.3bn (+37% yoy), led by strong contribution from its Defence and Aerospace units, while USS was decent. ■ We expect 2H24F net profit at S$366m (+9% hoh, +24% yoy), driven mainly by double-digit EBIT growth (+15% yoy) and lower finance expenses. ■ Reiterate Add. Our TP remains unchanged at S$5.30.
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Singapore Exchange Ltd (SGX SP) Right time
Structural & opportunistic tailwinds. Upgrade to BUY SGX 1HFY25 PAT was ahead of MIBG expectations on stronger cash equities velocity and derivatives demand. These conditions are likely to persist as global geopolitical volatility and monetary & fiscal uncertainty increases. This should give SGX a competitive advantage as a deeply liquid risk management venue. The high operating leverage of the cash equities segment could benefit from safe haven flows, positive policy measures and a stronger IPO pipeline. Raise TP to SGD14.16. Upgrade to BUY.
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