|
UOB KAYHIAN |
UOB KAYHIAN |
|
2024: Impacted By Rising Costs; More Stores To Drive Growth In 2025
SSG’s 2024 earnings missed our and consensus expectations, though revenue continued to grow consistently and outpace the industry. Total dividend grew, with a stable payout ratio and strong cashflow generation. We anticipate further store openings as competitors scale back. However, staff costs are expected to be elevated due to increased headcount from new stores and higher wages under the progressive wage model. Maintain BUY with a trimmed target price of S$1.92.
|
Property – China Faster-than-expected Destocking; Higher 2025 National Residential Sales Forecast
According to the latest NBS data, national sales were stronger than expected but new starts remained sluggish in 2M25, leading to a faster destocking pace. Due to improved supply-demand dynamics and enhanced destocking policies, we raise our forecast for national residential GFA sold growth in 2025 to -2.5% yoy under a neutral scenario. Maintain OVERWEIGHT. CR Land and Longfor remain our top picks.
|
|
LIM & TAN |
LIM & TAN |
|
The Board of Directors of Singapore Technologies Engineering Ltd / STE ($6.32, up 0.11) wishes to announce its dividend plan for the financial year ending 31 December 2025 (“FY2025”) and a new dividend policy that will be effective for the financial year ending 31 December 2026 (“FY2026”) and onwards. FY2025 Dividend Plan For the previous financial year ended 31 December 2024, the proposed total dividend is 17.0 cents per share. This includes a final dividend of 5.0 cents per share, which is subject to shareholder approval at the 2025 Annual General Meeting (“AGM”) to be held on 24 April 2025. At STE’s last traded price of $6.32, it is capitalized at $19.7bln and trades at 23x forward PE, 2.8% forward yield (DPS of 18 cents as guided by management) while consensus 1 year target price of $6.40-6.50 implies little upside potential in terms of capital upside. We maintain an “Accumulate on Weakness” recommendation on STE given “scarcity premium” as defence related stocks surge across the globe on the back of increased and heightened defence spending.
|
The Business Times: Developers in Singapore sold 1,575 private homes in February, about 10 times the 153 units moved a year earlier and 45.4 per cent more than the total sold in January, data released by the Urban Redevelopment Authority (URA) showed on Monday (Mar 17). The latest new sales tally, excluding executive condominiums (ECs), is a 13-year high for the month of February since 2012, when 2,417 units were sold. The surge in new home sales is likely to benefit real estate agencies like Propnex ($1.12, forward P/E 14x, 4.7% yield) and APAC Realty ($0.42, forward P/E 11x, 5% yield). Rising demand since late last year into the first few months of this year will provide a boost to commission income amidst strength in the primary market. Consensus TP for Propnex is $1.25, representing a 11.6% potential upside while consensus TP for APAC Realty is $0.49, representing a 16.7% potential upside. We have “Accumulate” ratings on both APAC Realty and Propnex as both companies ride on the upturn of the residential new launch market in Singapore. |
| MAYBANK KIM ENG | UOB KAYHIAN |
|
GoTo Gojek Tokopedia (GOTO IJ) Blue skies ahead
Maintain BUY with new TP of IDR120 We upgrade our SOTP-based TP to IDR120 from IDR105 after FY24 Adj. EBITDA of IDR327b beat our forecast. We think ODS growth momentum will continue, and lending will be a fintech growth driver. Meanwhile, we expect service fee to increase by 15% YoY to IDR715b in FY25E (vs. IDR622b in FY24) and consolidated revenue will rise by 11% YoY to IDR17.6t in FY25E. We also expect efficiency gains to accelerate the path to profitability, and we project Adj. EBITDA of IDR1.5t in FY25E.
|
Kerry Properties (683 HK) Luxury Home Expert; Mega Investment In Shanghai CBD Bearing Fruit From 2025
Kerry Properties specialises in luxury homes, with over 60% of its IP and DP gross asset value contributed by mainland China projects, which should benefit from the stabilisation of China’s economy. Mont Verra in Hong Kong and Jinling Residence in Shanghai are set to boost sales, lowering net gearing from 43% in 2024 to 31% by 2026. Expect stable DPS of HK$1.35 for 2024-26. The stock is trading at 0.22x P/B, the lowest among peers. Initiate coverage with BUY and a target price of HK$21.70, derived from a 65% discount to Dec 24 NAV of HK$62.10.
|
