|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
Elite UK REIT Payout ratio restored to 95%
• Gross revenue for FY24 slid by 1.2% YoY to £37.5mn due to an income vacuum from vacant assets, which was in line with expectations and formed 99% of our FY24e estimates. NPI plunged by 10.3% YoY to £37.3mn, which met our estimates, as lower dilapidation settlements were concluded during the year.
|
Q & M Dental Group Ltd Growth drivers appearing
▪ Q & M is undergoing multiple cost initiatives to improve margins. Some of the cost-down efforts include sharing payment charges, consolidating suppliers, and recovering consumable charges.
|
|
UOB KAYHIAN |
MAYBANK KIM ENG |
|
DBS Group Holdings (DBS SP) 4Q24: Returning Excess Capital Over Three Years During 2025-27
DBS achieved a net profit of S$3,522m in 4Q24 (+11% yoy), driven by an uptick in NIM, surge in wealth management fees (+41% yoy) and markets trading income (+40% yoy). In addition to the share buyback programme of S$3b, the Board had established a capital return dividend of 15 S cents per quarter to be paid out over 2025. Management expects to pay out similar amounts of capital in the subsequent two years in 2026 and 2027. Downgrade to HOLD. Target price: S$49.80.
|
DBS Group (DBS SP) Execution + Yield
Capital returns justify a higher valuation. BUY DBS beat MIBG/Street earnings expectations in FY24. The succession of the new CEO is ensuring stability, while also increasing focus on growing high ROE segments of the Group. Raising operational efficiencies through integrating AI and leveraging DBS’ strong platform is another priority. All this should increase DBS’ sustainable ROE by ~4ppts going forward. The Group’s capital returns policies should deliver dividend yields >6.5%. All this justifies a higher valuation, in our view. Raise TP to SGD51.37. BUY.
|
| UOB KAYHIAN | LIM & TAN |
|
Internet – China Growth Potential And AI Development Trends Upon Emergence Of DeepSeek
Amid geopolitical uncertainties, the emergence of DeepSeek models have ignited a major AI industry shake-up, garnered investor attention and drawn wide developer interest in the Chinese AI industry as it lowers the technical and financial barriers in deploying LLM. An increasing number of global hyperscalers and application companies have facilitated the deployment of DeepSeek and Qwen models, further expanding their accessibility and adoption. Maintain MARKET WEIGHT.
|
Netlink Trust ($0.855, down 0.5 cents) announced today that its revenue for the period ended 31 December 2024 remained relatively stable compared to the corresponding period a year ago Netlink Trust’s market cap stands at S$3.3bln and currently trades at 33x PE and 1.4x PB with a dividend yield of 6.3%. Consensus target price stands at S$1.00, representing 19% upside from current share price. Netlink Trust has historically been able to pay higher DPU, which is partly attributed to their strong, defensive business and high fixed debt rates. However, given the rather fair valuations, we recommend investors “HOLD” Netlink Trust for its defensive and decent dividend yield of 6.3%. |
