|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
City Developments Limited Accelerating capital recycling efforts
▪ 1H24 PATMI of S$87.8mn (+32% YoY) was below expectations, forming 31% of our FY24e forecast. The shortfall was due to construction delays, which pushed back the timing of profit recognition of property development projects. The increase in PATMI YoY was driven by higher divestment gains as part of CDL’s capital recycling efforts. ▪ Year-to-date, CDL has achieved c.S$271mn in divestments, short of management’s S$1bn target for FY24e. Divestments for FY24e are likely to range between S$400mn and S$500mn, unless the larger assets in the UK are sold, which could bring the total closer to the S$1bn target.
|
CapitaLand Investment Limited Shifting towards fee-related earnings
▪ 1H24 revenue of S$1.365bn (+1.5% YoY) and PATMI of S$331mn (-5.7% YoY) were slightly below our estimates, achieving 44% and 41% of our FY24e forecast, respectively. The YoY improvement in revenue was driven by an 8% increase in its Fee-income Related Businesses (FRB), partially offset by a 2.3% decline in the Real Estate Investment Business (REIB),which was mainly due to the absence of contributions from divested assets.
|
|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
ComfortDelGro Corp Ltd Finally, UK is a source of growth
▪ 1H24 results were within our expectations. Revenue and PATMI were 52%/45% of our FY24e forecast. 2Q24 net profit rose 18% YoY driven by a strong turnaround in UK bus and Singapore taxi businesses. Interim dividend increased 21% to 3.52 cents . ▪ Around half of 2Q24 EBIT growth was from UK bus operations. It turned around from losses to a 3% operating margin. Taxi earnings spiked 48% YoY to S$38.3mn on the back of higher Zig ride-hailing commissions and platform fees. Excluding acquisitions, Australia's earnings in 2Q24 declined 26% YoY.
|
StarHub Limited Service revenue stalling
▪ 2Q24 results were within expectations and management full-year guidance. 1H24 revenue and EBITDA were 47%/46% of our FY24 estimates, excluding D’Crypt (disposed in Feb24). Interim dividend rose 20% to 3 cents and within guidance of at least 6 cents full year. ▪ 2Q24 service EBITDA expanded 5% YoY to S$113mn excluding D’Crypt. Margins benefited from a S$5mn reversal of overseas lease circuits. Excluding this reversal, 2Q24 service EBITDA will be flat or up 0.4% YoY.
|
| PHILLIP SECURITIES | PHILLIP SECURITIES |
|
Singapore Telecommunications Ltd Prices are up, costs down, but currency headwind
▪ 1Q25 results were within expectation. Revenue and EBITDA were 23%/25% of our FY25e forecast. Optus reported stronger margins offset by weaker associate income due to currency depreciation. 1Q25 net profit growth was largely driven by an absence of losses in Trustwave. ▪ Associate earnings were down 5% YoY to S$406mn. A weaker Indonesia rupiah pulled down Telkomsel's net profit by 6.3% points. Bharti suffered from Nigerian Naira translation losses and higher interest expenses from the additional stake in Airtel.
|
Singapore Telecommunications Ltd Prices are up, costs down, but currency headwind
▪ 1Q25 results were within expectation. Revenue and EBITDA were 23%/25% of our FY25e forecast. Optus reported stronger margins offset by weaker associate income due to currency depreciation. 1Q25 net profit growth was largely driven by an absence of losses in Trustwave. ▪ Associate earnings were down 5% YoY to S$406mn. A weaker Indonesia rupiah pulled down Telkomsel's net profit by 6.3% points. Bharti suffered from Nigerian Naira translation losses and higher interest expenses from the additional stake in Airtel.
|
