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UOB KAYHIAN |
UOB KAYHIAN |
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CSE Global (CSE SP) 1H24: Results A Strong Beat On Top-line Growth
CSE's 1H24 earnings of S$15m (+36% yoy) beat our expectations by 10%, supported by strong top-line growth. 1H24 orderbook remained strong at S$692m (+33% yoy) with a sustained order win momentum of S$391m, which should drive better 2H24 earnings. CSE also made its first post-placement acquisition. It continues to capitalise on emerging trends and pursue inorganic growth. Maintain BUY with a 7% higher target price of S$0.60 (S$0.56 previously).
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DBS Group Holdings (DBS SP) 2Q24: A New Beginning
DBS achieved 2Q24 net profit of S$2,789m (+6% yoy) with broad-based growth across net interest income (+5% yoy), fees & commissions (+27% yoy) and other non-interest income (+6% yoy). Management estimates that every 1bp cut in the US Fed Funds Rate will reduce net interest income by S$4m. The lower sensitivity is due to its lower CASA ratio of 50.5% and large portfolio of fixed-rate assets. Tan Su Shan takes over the helm as new CEO in Mar 25. Maintain BUY. Target price: S$41.50.
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UOB KAYHIAN |
PHILLIP SECURITIES |
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Riverstone Holdings (RSTON SP) 1H24: Results In Line; Robust Demand Drives Growth
Riverstone’s 1H24 earnings were in line with expectations, lifted by higher ASPs and demand recovery for cleanroom and healthcare gloves. Healthcare gloves continued to see strong order flow, while cleanroom gloves have enjoyed improving qoq demand since end-23. As the global semiconductor market recovers while Riverstone’s customer base grows, we expect demand for both glove segments to continue growing. Maintain BUY with an unchanged target price of S$1.16.
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Elite UK REIT Increasing payout ratio to 90%+
• Gross revenue for 1H24 slid by 0.6% YoY owing to the 7.7% vacancy rate in the portfolio to £18.6mn, which was 48% of our FY24e estimates. NPI is in line with our forecast and down by 4.7% to £18.7mn as vacancy holding cost continues to hurt the margin. • DPU met our expectation plunging 19.5% YoY due to the enlarged unit base, but after adjusted DPU the unit base DPU decreased by 2.2% YoY in the face of the lower income due to the 7 vacant assets.
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| PHILLIP SECURITIES | PHILLIP SECURIITES |
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Venture Corporation Limited Some stability creeping up
▪ 1H24 results were below expectations. Both revenue and PATMI were 44%/43% respectively of our FY24e forecasts. 2Q24 net profit declined 4.3% YoY to S$63.8mn, with revenue contracting 6% to S$717mn. The pace of revenue contraction is the slowest after six quarters. ▪ Venture is guiding revenue to be stronger in 2H24 compared to 1H24. We believe some of the growth domains the company is pursuing include optical transceiversfor data centres and consumer lifestyle products.
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Oiltek International Ltd Earnings growth of 50% YoY
▪ 1H24 PATMI jumped 50% YoY to RM10.3mn and 44% of our FY24e forecast. Earnings is running ahead of our 21% growth estimate in FY24e. Revenue recognition is dependent on delivery schedule and not seasonal. The company paid a maiden interim dividend of 0.9 cents. ▪ Order-book grew 9.9% YoY to RM405mn or two years of current revenue. Revenue from Africa and America in 1H24 jumped 4-fold to RM14.6mn. New orders secured this year was RM132.8mn.
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