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UOB KAYHIAN |
UOB KAYHIAN |
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Banking – Singapore 2Q25 Results Preview: Brace For NIM Compression
We expect NIM compression of 7bp qoq for DBS and 8bp qoq for OCBC in 2Q25 due to the synchronised steep drop in SORA and HIBOR. Fee income is expected to grow 13% yoy for DBS and 14% yoy for OCBC, driven by wealth management. We expect net profit of S$2,691m for DBS (-4% yoy, -7% qoq) and S$1,767m for OCBC (-9% yoy, -6% qoq). Easing of trade conflict and closing of more trade deals is positive for economic growth. Maintain OVERWEIGHT. BUY OCBC (Target: S$19.25). HOLD DBS (Target: S$47.00).
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Sun Hung Kai & Co (86 HK) 1H25 Preview: Positive Market Sentiment Improves Asset Valuations
We held a pre-blackout call with SHK&Co. SHK&Co saw increased liquidity events for its PE portfolio in 1H25 and we expect improving asset valuations for its investment management segment, thanks to encouraging capital markets performances in the US and Hong Kong. SHK&Co continued to institutionalise its Funds Management platform and is on track for AUM growth. We see a mixed outlook for Consumer Finance with lower HIBOR amid suboptimal economies. Maintain BUY and target price of HK$5.86.
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CGS CIMB |
CGS CIMB |
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Food Empire Holdings Ltd Justifying its continued re-rating
■ Food Empire Holdings (FEH) has announced a collaboration with Santan to offer its products on AirAsia flights, as well as on-the-ground touch points. ■ We believe this will be the first of various business initiatives arising from the partnership with Ikhlas Capital (private equity firm). ■ In our view, FEH’s efforts to grow its business and the MAS S$5bn EMDP could re-rate its valuations to 17x FY26F P/E (3 s.d. above its 9-yr average).
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Bangkok Bank Q2Q25 net profit beat due to investment gain
■ 2Q25 net profit was THB11.8bn (+0.3% yoy but -6.2% qoq), which was 6% above our estimate. ■ Loan growth was sluggish at -0.3% yoy and -0.3% qoq in 2Q25, but +0.7% vs. end-2024. ■ Qoq higher NPLs came from re-lapse NPLs from the manufacturing and commercial sectors.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Keppel DC REIT (KDCREIT SP) Riding digital tailwinds Asia’s first pure-play DC REIT; Initiate with BUY
We initiate coverage of KDCREIT with a BUY and a DDM-based target price of SGD2.40. We believe it will benefit from demand tailwinds arising from digitalization, cloud migration and AI adoption. Sponsor has a record of developing and operating data centres (DC). Attractive cost of capital and debt headroom makes inorganic growth feasible. While yield is low, the positive sector view and local sponsor justify the premium, in our view.
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Grab Holdings (GRAB US) 2Q25E: A topline growth push
2Q25E: GMV and loan-book growth accelerates We expect Grab’s on-demand GMV to grow 20% YoY/8% QoQ in 2Q25E helped by acceleration in its Deliveries segment while Mobility GMV growth remains firm. Within its fintech business, we expect loan-book growth to expand to USD710m, up 79% YoY/25% QoQ. We think the topline acceleration is partially driven by an affordability push and partially at a cost of higher incentives/provisioning. Nevertheless, we expect adj. EBITDA to grow 73% YoY/5% QoQ. Our on-demand GMV and adj. EBITDA expectations for 2Q25 are 1-2% ahead of street expectations. 2Q results are due to be reported on 30 July.
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