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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Centurion Corporation Positive in all segments
▪ FY24 revenue/adj. PATMI beat our expectations, at 106%/105% of our FY24e estimates. Revenue and adj. PATMI growth were driven by higher rental rates and high occupancies maintained for worker and student accommodations.
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Phillip Singapore Monthly – Feb25 World War Tr-ade
• Singapore equities continued its climb, rising 1.0% in February, the 4th consecutive month of gains. Leading the gainers were defence, property and conglomerates. Singapore equities reach an all-time high on 12 February.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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BRC Asia (BRC SP) 1QFY25: Soft Results As Margins Compress
BRC reported lower 1QFY25 revenue (-12.4% yoy) and gross profit (-19.0% yoy), dragged by falling steel prices and slower project off-take. However, 1QFY25 PATMI was higher (+13.9% yoy), driven by a reversal of provisions for onerous contracts. Moving forward, BRC sees strong demand from a large number of upcoming HDB projects and mega infrastructure projects. Despite its decent 6.3% dividend yield, we opine that BRC is fully valued at current levels, thus we maintain HOLD but with a higher target price of S$2.76.
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Sea Ltd (SE US) Firing on multiple cylinders
Raise SoTP to USD174: Top Pick within ASEAN Internet Following a stellar 4Q24 delivery and strong 2025 guidance, we raise our Adj. EBITDA estimates by 2-3% and lift our SoTP-based TP to USD174 on roll forward of our target multiples to 2026. We as well raise our target multiple for Ecom & Garena in light of superior growth. We reiterate our BUY on SE as the company benefits from multiple tailwinds in all segments which could be further boosted by leveraging AI. While the stock has risen 4x since start of 2024, we see valuations at lower-inline with its peers while growth remains at the higher end, offering attractive valuations.
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| LIM & TAN | LIM & TAN |
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ST Engineering ($6.10, up 13 cents) announced a decision by its Commercial Aerospace business to undertake a capacity transition plan for its airframe Maintenance, Repair and Overhaul (MRO) operations. This strategic initiative is part of a continuous effort to optimise its Commercial Aerospace facility network and enhance its competitiveness in the global airframe MRO market. ST Engineering’s market stands at S$19bln and presently trades at 22.5x forward PE and 6.9x current PB, with a dividend yield of 2.8%. Despite the share price run up, we continue to be positive on ST Engineering’s fundamentals and thus recommend an “Accumulate on Weakness” rating on ST Engineering.
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We highlight the key points from DBS’ ($45.96, up 0.34) just released FY2024 annual report: DBS was named Safest Bank in Asia by Global Finance for the 16th consecutive year. For the year, DBS delivered record total income of SGD 22.3 billion. Net profit rose 11% to an all-time high of SGD 11.4 billion. Return on equity (ROE) was 18.0%, which was one of the highest among developed market banks. The solid financial performance belied challenges we faced from muted loan growth. Weak investment sentiment in Hong Kong and China impacted loan demand, while Chinese companies tapped lower-cost funding onshore. Despite these headwinds, we managed to grow net interest income (NII) by 6% through judicious balance sheet management. At $45.96, DBS is capitalized at $131bln and trades at 11-12x forward PE, 1.9x price to book and 5.2% yield (on normalized 60 cts/quarter in dividend payments or $2.40/year in annual dividends for FY2025), but 6.5% yield if we also include the capital payment of an additional 60 cents/year for the next 3 years as guided by management. With Bloomberg consensus 1 year target price of $49/share, potential capital upside is about 6.6%, and we maintain an “Accumulate” rating on DBS. |
