ANALYSTS SAY: Buy, Sell, Hold (10 Sept)

UOB KAYHIAN

UOB KAYHIAN

Banking – Singapore

Headwinds From Singapore Being A Safe Haven

Highlights

• The influx of safe haven liquidity could be structural and persistent, thus continuing to exert downward pressure on banks’ NIM. • We expect the Fed to cut the Fed Funds Rate four times totalling 100bp, bringing it to 3.25%. • Downgrade to MARKET WEIGHT. BUY OCBC (Target: S$20.40). HOLD DBS (Target: S$54.40).

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Keppel Pacific Oak US REIT (KORE SP)

Gradually Restoring Payout Ratio

Highlights

• Management guided portfolio occupancy to slip slightly to 86-88% by end-25 due to known vacates of 174,000sf. • We have recalibrated our assumed payout ratio to 25% in 2026, 40% in 2027, 55% in 2028 and a stabilised 70% in 2029. • KORE trades at distribution yield of 4.0% for 2026 and 6.5% for 2027. P/NAV looks depressingly low at 0.36x. Downgrade to HOLD. Target price: US$0.26.

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OCBC INVESTMENT RESEARCH

MAYBANK KIM ENG

Zijin Mining Group – Company Update

Rating: BUY
Last Close: HKD 27.74
Fair Value: HKD 39.50

Key Highlights

• Strong 1H25 results:

  • Revenue: CNY 167.7b (+11.5% YoY)

  • Net profit: CNY 23.3b (+54.4% YoY), in line with earlier profit alert.

  • Interim dividend: CNY 0.22/share (vs. 0.10 in 1H24).

• Operational performance:

  • Copper output: 567k tonnes (+9% YoY).

  • Gold output: 41 tonnes (+16% YoY).

  • Lithium output: only 18% of full-year target, lagging guidance.

  • Cost increases: Copper +8% YoY, Gold +15% YoY, but full-year cost growth expected within +5–8% range.

• Outlook:

  • Benefiting from strong copper and gold prices.

  • Output for gold and copper on track to meet full-year guidance.

  • Ghana and Xinjiang projects expected to lower costs going forward.

  • Lithium remains weak, company focusing on cost control over expansion.

  • Planned spin-off of Zijin Gold International is a potential catalyst.

Valuation & Forecasts

• Target Price: Raised to HKD 39.50 (from 27.90).

• FY25E / FY26E Forecasts (CNY b):

  • Revenue: 382.6 / 414.3

  • Net profit: 45.5 / 54.0

  • EPS: 1.7 / 2.0

  • DPS: 0.5 / 0.6

• Margins improving: EBIT margin to rise from 15.9% (FY25E) to 17.3% (FY26E).

Catalysts

• Higher-than-expected copper and gold prices.

• Lower operating costs.

• Smooth ramp-up of new projects and production.

Risks

• Earnings highly sensitive to commodity prices.

• Lower demand for gold/copper could hurt results.

• Execution risks in capacity expansion and cost control.

ASEAN Telecom

Starlink’s direct-to-cell entry: implications for ASEAN telcos

SpaceX acquires spectrum to boost cellular service SpaceX will acquire EchoStar's AWS-4 and H-block spectrum licences for USD17b. This can fast-track SpaceX’s Direct-to-Cell (D2C) offering due to exclusive licensed spectrum, thus reducing its reliance on third-party mobile operators and accelerating independent deployment of satelliteto-smartphone connectivity. Unlike Starlink, which requires user terminals, D2C leverages terrestrial spectrum integrated with Starlink satellites to connect standard 4G/5G smartphones without additional hardware. This lowers adoption friction and opens a massive addressable market in rural and underserved areas. 

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