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UOB KAYHIAN |
UOB KAYHIAN |
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Aztech Global (AZTECH SP) 1Q25: Results Below Expectations; Downgrade To SELL On Challenging Outlook
1Q25 earnings of S$1.5m (-91% yoy) are way below our expectation, forming only 3% of our full-year estimate. Revenue fell 67% yoy on reduced customer demand. Aztech is looking to tap opportunities that may arise from the current challenging situation as the global economic climate remains mired in uncertainty with the evolving trade wars and geopolitical tensions. Downgrade to SELL with a 29% lower target price of S$0.46.
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Hong Kong Exchanges and Clearing (388 HK) Expecting Solid 1Q25 Earnings Growth But Trade War Risk Lingers
HKEX is expected to report a 36.3% yoy net profit growth in 1Q25, driven by a strong headline ADT performance amid the AI frenzy in China. Despite the volume spike following the US tariff shock, we believe such a high turnover velocity driven by market uncertainty is unlikely to continue and we expect headline ADT to ease gradually as risk-off sentiment prevails. However, the current valuation (-0.5SD) is not particularly stretched after the recent pullback, in our view. Maintain BUY. Target price: HK$394.00.
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CGS CIMB |
DBS RESEARCH |
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Aztech Global Ltd 1Q25 off to a dismal start
■ 1Q25 performance was dismal, with revenue (S$42m; -49% qoq, -67% yoy) forming just 8% of our/Bloomberg consensus full-year forecasts. ■ 1Q25 net profit (S$1.5m; -85% qoq, -91% yoy) formed just 3% of our/Bloomberg consensus full-year forecasts. ■ Given the big miss to our FY25-27F EPS expectations on lower demand from its customers, we downgrade Aztech to Reduce from Hold with S$0.41 TP.
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"Fortune rewards the brave – Singapore REITs"
Key Takeaways:🔹 Attractive Re-Entry Levels for S-REITs:
🔹 Resilience Amid Economic Stress:
🔹 Opportunities in Mispriced REITs:
REITs to Watch (Alpha Opportunities):
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| DBS RESEARCH | LIM & TAN |
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DBS Equity Picks Staying agile amid volatility
• SG Equity Picks outperformed amid volatility, with MTD return of -3.2% vs. the STI’s -10.7% • Since inception, TWRR eased to 198.1% (from 203.3% last month) vs. STI’s total return of 72.5% (prev. 85.3%)
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LHN’s market cap stands at S$176mln and trades at a forward P/E of 5.5x and 0.7x P/B. Its 3 cents dividend (sustained in the past 2 years consisting of 1 ct interim, 1 ct final and 1 ct special) translates to an attractive 7.1% dividend yield. LHN’s proposed spin-off of its biggest contributor Coliwoo may unlock value for shareholders as a pureplay co-living housing business. We do not rule out special dividends/ dividend-in-specie should the listing materialize. Bloomberg consensus 1-year average target price of 56 cents implies a potential return of 33%. We maintain Accumulate on LHN Limited. |
