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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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First REIT FX remains a drag
▪ 2H25/FY25 DPU of 1.04/2.17 Singapore cents (-10.3%/-8.1% YoY) was in line with expectations, forming 48%/100% of our FY25e forecast. The YoY decline was due to the depreciation of the IDR and JPY against the SGD, partially offset by higher local-currency rental income and lower finance costs.
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Keppel Ltd Giving more, Growing more
▪ FY25 adjusted revenue and PATMI were within our expectations at 97%/96%, respectively, of our forecast. FY25 results exclude M1, which is classified as an asset for sale. Ordinary dividend was maintained at 34 cents. A 12.7-cent special dividend was announced (2-cent cash + 1 Keppel REIT for every 9 Keppel shares).
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UOB KAYHIAN |
UOB KAYHIAN |
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CapitaLand Ascendas REIT (CLAR SP) 2H25: Step-up In Development And Redevelopment Projects
Highlights • DPU dipped 2% yoy to 7.528 S cents in 2H25 due to the time lag for the acquisitions of 5 Science Park Drive and 9 Tai Seng Drive that were completed in Aug 25, two months after completing its equity fund raising in Jun 25.
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CapitaLand Integrated Commercial Trust (CICT SP) 2H25: Steady Execution With Smooth Assimilation Of ION Orchard And CapitaSpring
Highlights • NPI from retail portfolio grew 5.5% yoy in 2H25 supported by a positive rental reversion of 6.6% yoy and NPI margin expansion. NPI from office portfolio increased 11.8% yoy due to acquisition of 55% stake in CapitaSpring. • Newly-acquired ION Orchard (completion: 30 Oct 24) and full ownership of CapitaSpring (completion: 26 Aug 25) contributed to the stellar performance. • Maintain BUY. Target price: S$2.95.
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| LIM & TAN | LIM & TAN |
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DBS Group ($59.30, down 36 cents) achieved a record profi t before tax of SGD 13.1 billion in 2025, slightly higher than a year ago, as total income rose 3% to a new high of SGD 22.9 billion despite a challenging rate environment. Group net interest income was modestly higher, with proacti ve hedging and record deposit growth off setti ng pressures from sharply lower interest rates and a stronger Singapore dollar. Fee income and treasury customer sales reached new highs, led by wealth management, while markets trading income was the highest since 2021. DBS missed esti mates in 4Q’25 due to weaker than expected net interest income while management expects a slightly lower 2026 performance which implies another miss in consensus estimates as consensus is expecti ng 2026 profit of $11.4bln. We believe $10.5bln is more reasonable, implying an 8% potenti al downgrade to consensus numbers for 2026. Notwithstanding this, dividend payout and capital returns conti nue to remain att racti ve at $3.24 for 2026, translati ng to an attracti ve yield of 5.5%. With consensus 12-month target price of $60 implying limited upside from current price, we downgrade DBS to a HOLD from BUY.
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We summarize Keppel’s (S$11.64, up 2 cents) latest Q&A transcript. Keppel’s FY2025 results webcast Q&A was framed by a leadership update: Chairman Danny Teoh will reti re aft er the AGM on 17 April 2026, with Piyush Gupta appointed non-executi ve Chairman and Independent Director the same day. CEO Loh Chin Hua credited Teoh’s stewardship through Keppel’s multi -year transformation and said Gupta has already been acti ve in sharpening strategy since joining the Board in July, as Keppel accelerates its shift toward “New Keppel” (fund management plus scaled operati ng platforms) while clearing the “NonCore Portf olio for Divestment”. Keppel’s market cap stands at S$21.2bln and currently trades at 21x PE and 2x PB, with a dividend yield of 4.0% (consisti ng 15c interim, 19c special split into 2c cash and 1 Keppel REIT unit for every 9 Keppel shares held valued at 11c). Consensus target price stands at S$12.30, representi ng 5.7% upside to current share price. Although Keppel share price has performed recently, we continue to like Keppel as it executes it’s moneti zati on strategy and that management’s transformati on strategy into a global asset operator is only half way done. We maintain an Accumulate rati ng on Keppel Ltd. |
