|
CGS CIMB |
UOB KAYHIAN |
|
Bank of China Continuing stability-centric outcomes
■ We see FY24’s net profit growth of 2.3% as slightly above our expectations (due to 4Q24’s impressive 9.3% yoy), with DPS and asset quality in line. ■ We like 4Q24’s adjusted PPOP growth yoy of 7% (3Q24’s -21%), the strongest since 4Q22, helped by stabilising net interest income. ■ FY24 was the seventh time in eight years it has delivered low-single-digit net profit growth and we expect this to continue over FY25-27F. ■ Reiterate Add; we raise TP to HK$5.60 due to reduced concerns over policy risks and hence lower policy risk valuation discounts.
|
Oiltek International (OTEK SP) Multiple Positive Catalysts For Valuation Re-rating
Oiltek has announced several positive developments in 2025 including: a) transfer of listing to SGX mainboard, b) 2-for-1 bonus shares issue, and c) a proposed partnership with Pertamina in the SAF sector. We believe further developments of the first two events, which will be tabled for approval in Oiltek’s AGM on 25 Apr 25, could improve trading liquidity and widen its shareholder base, while Pertamina JV is mid-term positive. Maintain BUY with a higher target price of S$1.44 (S$1.37 previously).
|
|
UOB KAYHIAN |
MAYBANK KIM ENG |
|
WuXi Biologics (Cayman) (2269 HK) 2024: Results Beat, Targets Accelerated Revenue Growth In 2025
WuXi Bio’s 2024 revenue rose 9.6% yoy and adjusted net earnings increased 1.8% yoy. The results were above expectations. Seeing a significant increase in new projects and as phase III and commercial-stage projects continue to expand revenue scales, the company targets accelerated revenue growth in 2025 with continuous operations revenue growing 17-20% yoy this year. It also expects margin improvement as overseas facilities ramp up utilisation rates. Maintain BUY with a higher target price of HK$35.00.
|
Gamuda (GAM MK) 2QFY25: Slight miss
A slight miss; maintain BUY 1HFY25 core net profit (CNP) of MYR424m was 38%/36% of our/street’s FY25E, with the miss vs. our forecast due to slow recovery in E&C margins. We believe this to be a timing matter and lower just our FY25E CNP by 6%, while maintaining FY26/27E forecasts. On considering an enlarged share base (new shares from DRP and ESOS), our RNAV-TP is trimmed to MYR4.95 (-5sen). Maintain BUY; we like Gamuda for its earnings growth prospects, supported by its strong delivery track record and geographical reach.
|
| LIM & TAN | LIM & TAN |
|
Paragon REIT ($0.97, up 0.5 cent) announced the scheme document for it’s proposed privatization and we highlight the following: The Scheme consideration is S$0.98 in cash /unit to privatize Paragon REIT and the majority owners (Cuscaden Peak and its subsidiaries) owns 61.5% and will thus abstain from voting. Accordingly, the outcome of the scheme will be decided solely by the Minority Unitholders. If approved, the Scheme Consideration will not be reduced by the 2H FY2024 Distribution of 2.33 Singapore cents per Unit. If scheme is not approved, Paragon REIT will remain listed and the offerer intends to actively engage with PARAGON REIT to consider an appropriate plan for Paragon, as it strongly believes that a Potential AEI is critical for Paragon to remain competitive Paragon REIT’s market cap stands at $2.8bln and the deal values paragon at 1.07x price/Adjusted NAV. Given that the IFA has deemed the offer fair and reasonable, along with the opportunity to receive the previously announced dividend, and considering that this offer values Paragon REIT above its current book valuations and at its highest trading price, we advise shareholders to accept the offer. We hereby also warn that should this offer fail, there is a significant chance a equity fund raising exercise might occur despite Paragon’s relatively low gearing of 35.3%. This is because even the lower end of the estimated CapEx of S$300mln to S$600mln far exceeds it’s available bank facilities of S$225mln and current cash balances, and that gearing is likely to cross 40%. As such, we recommend investors to vote in favour of the scheme.
|
We highlight key points in OCBC’s ($17.25, up 0.06) Annual Report 2024: The year 2024 continued to see elevated uncertainty amidst heightened geopolitical tensions. This was accentuated by the prolonged armed conflicts in the Middle East and Eastern Europe. On the macroeconomic front, initial expectations of downward adjustments in interest rates over the course of 2024 were moderated down by policy changes towards the close of the year. At OCBC’s last traded price of $17.25, OCBC is capitalized at $78 billion and trades at 10-11x PE, 4.9% (normalized dividend yield based on 85 cents full year payout) but 5.9% (based on normal 85 cents plus special 16 cents dividend per share). Price-to-book stands at 1.3x and consensus target price of $18.40 represents a 6.7% potential upside. Capital returns of $2.5billion via share buy backs & special dividends plus attractive yields will likely provide support for the share price. We continue to recommend an “Accumulate” rating on OCBC. |
