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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Oversea-Chinese Banking Corp Ltd Earnings dip from higher provisions
▪ 1Q25 earnings of S$1.88bn were within our estimates, as higher non-interest income offset lower NII and higher expenses and allowances. 1Q25 PATMI was 24% of our FY25e forecast. OCBC has reiterated its commitment to the two-year S$2.5bn capital return (special dividend equivalent to 10% dividend payout ratio and ~S$1bn share buyback) previously announced.
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ST Engineering Ltd Full of orders
▪ 1Q25 revenue was within expectations at 23% of our FY25e forecast. Defence led the growth with an 18% YoY rise to S$1.3bn. New orders spiked 45% YoY to S$4.4bn, driving up the outstanding order book 8% to S$29.8bn.
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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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StarHub Limited Still in hyper-competition mode
▪ Results were below expectations. 1Q25 revenue and EBITDA were 23% and 22%, respectively, of our FY25e forecast. Mobile ARPU continues to suffer from intense competition. On a QoQ basis, ARPU slipped 4.5%
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Thai Beverage PLC Will tighten the belt to grow
▪ Results were within expectations. 1H25 revenue/PATMI were 49%/50% of our forecasts. 2Q25 spirits revenue grew 2.1% YoY, but net profit (81% of group) declined 5.7% due to higher raw materials and marketing spend.
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| UOB KAYHIAN | UOB KAYHIAN |
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Banking – Singapore 1Q25 Round-up: First-order Direct Impact Assessed To Be Manageable
Banks delivered resilient earnings in 1Q25 (DBS: +15% qoq, OCBC: +12% qoq) supported by a sequential rebound in non-interest income. Banks have assessed their first-order direct impact from vulnerable sectors to be manageable at 2-3% of total loans. They have also recommitted themselves to their capital management plans announced in Feb 25. BUY OCBC (Target: S$19.30) for its focus on ASEAN. HOLD DBS (Target: S$45.45) for its 2025 yield of 6.9%. Upgrade to OVERWEIGHT.
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Singapore Technologies Engineering (STE SP) 1Q25: Revenue In Line; Strong Growth Outlook But Valuation On The Rich Side
STE’s 1Q25 revenue of S$2.92b was in line, at 23.9% of our full-year forecast. Group revenue rose 8% yoy, driven by strong growth in DPS, moderate growth in USS and largely flattish CA revenue due to last year’s high base. Orderbook reached a new record-high level of S$29.8b as at end-1Q25, providing good growth visibility in the medium term. While we like STE for its growth potential, valuation appears rich and we prefer a better entry point. Downgrade to HOLD. Target price: S$7.37.
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