Property Developers – Singapore
2022: Strong Results From Both CLI And CDL; Outlook Remains Bright
CLI and CDL reported strong 2022 results, with the latter’s result boosted by the sale of a hospitality asset, and both seeing strength in their respective lodging/hospitality segments as expected. CLI’s China ambitions in funds management should pay off in 2023 while CDL will maintain its focus on Singapore and the UK. Reiterate BUY recommendations on both CLI (Target price: S$4.28) and CDL (Target price: S$9.70). Maintain OVERWEIGHT.
Read More ...
|
United Overseas Bank (UOB SP) 4Q22: Acquisition Boosts NIM And Credit Card Fees
UOB reported net profit of S$1,152m for 4Q22 (+13% yoy and -18% qoq). NIM expanded 27bp qoq to 2.22%. Net interest income grew a whopping 53% yoy. The acquisition of Citi’s Consumer Businesses for Thailand and Malaysia was completed on 1 Nov 22 and provided two months of contribution. This boosted NIM by 8bp due to high margins for unsecured consumer lending. Credit card fees also grew 40% yoy due to higher customer spends and consolidation of Citi’s consumer businesses.
Read More ...
|
Yangzijiang Shipbuilding (Holdings) (YZJSGD SP) 2022: Strong Results As Expected; Raising Orderbook Guidance To US$3b
YZJ announced a record-high revenue of Rmb20.7b (+37% yoy) due to a 34% increase in vessels delivered. 2H22 shipbuilding gross margins improved to 13.5% and we expect further margin expansion towards the 15% level. We were disappointed that the company did not pay out more of its cash hoard, declaring a stable S$0.05 DPS instead. With a robust orderbook of US$11b, the company has revenue visibility up to 2026. Maintain BUY. Target price raised to S$1.58.
Read More ...
|
Oversea-Chinese Banking Corporation Limited / OCBC Ltd ($12.64, down 0.34) reported its financial results for the full year of 2022 (“FY22”). Group net profit for FY22 increased 18% to S$5.75 billion, from S$4.86 billion a year ago (“FY21”), coming in slightly below expectations due to weaker wealth management business, but the final dividend surprised, rising 43% yoy and hoh to 40 cents/share, raising full year dividend to 68 cents, up 28% yoy and yielding 5.38% (full year dividend payout ratio was 53%, up from 49% last year).
We believe OCBC is likely to pay 80 cents/share in dividends for 2023, yielding an attractive 6.3%. Valuations are attractive at 8x 2023 PE, 1.1x book and consensus target price is $14.88 (18% upside potential). Maintain BUY.
|
ST Engineering (S$3.55, up 1 cent) reported FY22 headline net profit of S$535mln which missed our expectations of S$573.4mln by 6.7% and consensus forecasts (as derived from Bloomberg) of S$560.2mln by 4.5%. Nevertheless, its final dividend at S$0.04 was inline with our expectations while Group operating profit had also depicted an improvement of 9% yoy. Its net gearing position, however, remains elevated with net debt of S$5.93bln as of end-4Q22 which equates to net gearing of 247% currently (end-2Q22 = 240%).
At $3.55, market cap of ST Engineering is S$11,057.9mln, FY22 P/E is 20.7x, current P/B is 4.6x and FY22 dividend yield is 4.5%. According to Bloomberg consensus, there are eleven buys, one hold and one sell recommendations on the stock while the target price on ST Engineering is S$4.12, representing a potential upside of 16%. Recommend ACCUMULATE ON WEAKNESS for the stock as ST Engineering’s robust order book continues to provide good revenue visibility
|
United Overseas Bank Citi integration to drive growth
■ The acquisition of Citi’s retail franchise boosted NIMs by c.8bp in 4Q22, but higher funding costs may moderate sequential NIM expansion in FY23F. ■ Core ROE (excluding Citi) could trend at c.14% in the near term, supported by a rebound in wealth income and rates staying relatively higher for longer. ■ Reiterate Add with a lower TP of S$33.30 as we realign Citi integration cost over FY23-24F. Valuations remain attractive at c.1x FY24F P/BV.
Read More ...
|