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CGS CIMB |
UOB KAYHIAN |
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Wilmar International Worst could be over
■ We believe the 13% drop in share price from recent peak in Mar 2025 has largely priced in the US$709m fine imposed by Indonesian Supreme Court. ■ Our channel checks indicated that Wilmar’s China soybean crushing margin could be higher than peers, supporting qoq and yoy stronger 3Q25F profit. ■ We believe investors should look past WIL’s legal proceedings to focus on its normalised earnings in FY26F-27F. ■ Upgrade to Add with a higher TP of S$3.30 (10x FY27F P/E).
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Keppel REIT (KREIT SP) Retail A New Horizon Highlights
• KREIT is acquiring a 75% effective interest in Top Ryde City Shopping Centre, a freehold regional mall in Sydney. The City of Ryde is an affluent neighbourhood with an average household income of A$128,164, significantly higher than the rest of New South Wales. • Top Ryde City Shopping Centre provides an initial property yield of 6.7% and DPU accretion of 1.34% on a pro forma basis for 2024. • We raise 2026 DPU by 2%. Maintain BUY. Target price: S$1.20.
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UOB KAYHIAN |
LIM & TAN |
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China Banking Examining The Surge In Banks’ Financial Investments
Highlights • Chinese banks have ramped up their bond allocations, with total bond investments rising at a four-year CAGR of 13.5% over 2021-25 to Rmb84.4t as of Aug 25, representing 21.4% of total banking assets. • Investment gains from bond trading have also become more prominent amid the bullish bond market, contributing 12.6% of total revenue in 1H25. • However, we expect interest rates to become more volatile going forward, posing downside risks to banks if a sharp rate reversal occurs.
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At S$0.68, GBY is capitalized at S$127mln and trades at 7.0x P/E, 1.2x P/B with a dividend yield of 2.2%. While FY25 performance was weaker yoy, GBY has since boosted its order book back up from $120mln to $157mln, while its expanded Malaysia facility provides the capacity to build bigger boats faster. Net cash position of $44mln represents 35% of market cap. We are re-assessing our recommendation and will provide a new update after our meeting with management in the upcoming annual general meeting. |
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