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UOB KAYHIAN |
UOB KAYHIAN |
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Banking – Singapore 1Q25 Results Preview: Calm Before The Storm
We should start to witness NIM compression at 6bp qoq for DBS and 7bp qoq for OCBC in 1Q25 due to a steep fall in SORA by 51bp to 2.56%. Fee income is expected to grow 10% yoy for DBS and 9% yoy for OCBC, driven by wealth management. We expect net profit of S$2,746m for DBS (-7% yoy, +9% qoq) and S$1,874m for OCBC (-5% yoy, +11% qoq). Asset quality is stable now but could deteriorate in 2H25. Maintain MARKET WEIGHT. BUY OCBC (Target: S$16.90). HOLD DBS (Target: S$40.00).
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Singapore Airlines (SIA SP) Expect yoy Softer 4QFY25 Earnings; FY26 To Benefit From Weak Fuel Prices
Mar 25 pax load dropped 0.8% yoy while cargo load rose 2.0% yoy. We keep our 4QFY25 net profit forecast at S$400m, down 30% yoy and 24% qoq. The recent sharp drop in jet fuel prices would support SIA’s FY26 financial performance, leading to a 17% lift in our FY26 earnings forecast. Cargo faces more uncertainties in the medium term, but 1QFY26 may benefit from Asia ex-China’s shipment frontloading ahead of US tariff uncertainties. Maintain HOLD. Target price:S$6.22.
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UOB KAYHIAN |
PHILLIP SECURITIES |
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Automobile – China Weekly: PEV Sales Surge Continues, BYD Leads As Competition Escalates
China’s PV insurance registrations rose 13% yoy and 4% wow in the 15th week of 2025, with PEV market share climbing to 53.0% as EV sales surged and ICE-cars demand softened. Galaxy and Zeekr underperformed amid rising competition from BYD’s DiPilot models and broader EV price cuts. Management will adjust pricing and launch five new models at two-month intervals, with major upgrades in July-August. Maintain MARKET WEIGHT. Top BUYs: BYD, Geely and Desay SV.
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Singapore Air Transport – Apr25 Broad-based tariff headwind
▪ In Mar 25, the aviation industry experienced a broad-based sell-off due to uncertainties brought about by the evolving US tariff landscape. SATS and SIE were the hardest hit, with share prices plunging by 11.9% and 11.2%, respectively, due to a gloomy air cargo outlook and potential supply chain disruptions for MRO services under the universal tariff. The impact on SIA and CAO is secondary, mainly driven by weaker consumer confidence. Although cargo flown revenue contributed c.33% of 3Q25 revenue for SIA, growth is less reliant on e-commerce.
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| CGS CIMB | MAYBANK KIM ENG |
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DBS Group 1Q25F likely avoided dampened outlook
■ We estimate DBS will report 1Q25F net profit of S$2.77bn (-6.2% yoy/+9.9% qoq) due to higher taxes from BEPS on resilient PBT (-3.7% yoy/+9.9% qoq). ■ However, a weaker global economy from ongoing trade tension between US and its trade partners could soften earnings outlook for remainder of FY25F. ■ Reiterate Hold with a lower GGM-based TP of S$43.10 as we reduce our ROE assumption from 17.5% to 16.0% given earnings uncertainty in FY25F.
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CapitaLand Malaysia Trust (CLMT MK) 1Q25: Solid start to FY25E
Maintain BUY; attractive net DPU yield of 7.2% CLMT’s 1Q25 results were within expectations, accounting for 26% of both our and consensus full-year forecasts. Distributable income rose by 10.9% YoY, supported by steady operational performance. Occupancy remained relatively stable at 92.6%, while retail rental reversion was strong at 12.4%. We maintain our BUY call, with forecasts and DDM-TP unchanged at MYR0.75 (Ke: 8.3%). CLMT offers an attractive FY25E net DPU yield of 7.2%.
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