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UOB KAYHIAN |
UOB KAYHIAN |
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DFI Retail Group Holdings (DFI SP) Retail Reinvention Continues With A Farewell To Food
DFI’s sale of its Singapore food business, which had only recently returned to profitability in 4Q24, was unsurprising given its various divestments in this segment in China, Indonesia and Malaysia in the past two years. We expect the company to announce a gain from the sale after its completion in 2H25 with capital to be deployed towards higher ROCE businesses and to support its DPS this year. Maintain BUY. Target price: US$2.80.
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Internet – China Monetisation Potential And Trends Of AI Agent From The Launch Of Manus AI
Seeing great opportunities in AI development, major China cloud hyperscalers are significantly lifting their AI investment in 2025. With the launch of Manus, we are more optimistic about the accelerating monetisation capabilities of AI agents and applications through API integration and tool utilisation, which benefit cloud hyperscalers. Maintain MARKET WEIGHT.
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LIM & TAN |
LIM & TAN |
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The Business Times reported that DBS Group’s ($45.49, up 18 cents) incoming CEO Tan Su Shan is open to “bolt-on” acquisitions and will focus on boosting the Singaporean lender’s high-return businesses such as wealth and transaction banking. DBS Group’s market cap stands at $129.5bln and currently trades at 11.5x Forward PE and 1.9x PB, with a dividend yield of 4.9%. Consensus target price stands at S$48.63, representing 6.9% upside from current share price. The US Fed Dot Plot of expecting 2 rate cuts for the rest of 2025 to reduce the Fed Funds Rate to 3.9% comes about in line with DBS’s internal forecast of 2 rate cuts for FY2025. As we see these rate cuts as being priced in by the markets, and that its normalized yield of 5.3% ($2.40/share) and 6.6% including the return of excess capital ($2.40 normal div plus $0.60 return of excess capital) as very attractive, we continue to maintain our “Accumulate” rating on DBS.
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Daiwa House Logistics Trust / DHLT ($0.56, down 1.5 cents) is pleased to announce that DHLT has acquired DPL Gunma Fujioka, a freehold logistics property located in Greater Tokyo, Japan. The Property was built in January 2022 and is entirely leased to a Japanese group company of one of the largest multinational consumer goods corporations globally, which is well established in Japan. DHLT’s market cap stands at S$391mln and currently trades at 0.8x PB, with a dividend yield of 8.6%. While underlying performance remains stable, FY24 DPU had seen an 8.2% yoy drop due to a weaker JPY against SGD. The impact will be partially mitigated by contributions from DPL Ibaraki Yuki (acquired Mar’24) and Vietnam’s D Project Tan Duc 2 (acquired Jul’24), as well as the just announced DPL Gunma Fujioka property. Consensus target price of 65 cents implies a potential return of 16%. In view of its high yield, attractive valuations and portfolio of defensive assets, we maintain an “Accumulate” rating on DHLT. |
| UOB KAYHIAN | DBS RESEARCH |
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Zijin Mining (2899 HK) 2024: In Line; Mining Entities’ Gross Margin Grows 8.9ppt To 58.0%
Zijin reported 2024 earnings of Rmb32,050.6m (+51.8% yoy), within expectations. Mining entities’ gross margin expanded to 58.0% in 2024 (+8.9ppt yoy) on a metal price rally and effective cost control. Both Zijin’s copper C1 and gold AISC were among the 20% lowest globally. Copper/gold output grew to 1.07m/72.9 tonnes (+6.1%/+7.7% yoy). Kamoa’s copper output will hit 580,000 tonnes with the completion of phase 3 expansion six months ahead of schedule. Maintain BUY. Target price: HK$23.00.
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Daiwa House Logistics Trust (DHLT) Acquisition in Greater Tokyo
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