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UOB KAYHIAN |
UOB KAYHIAN |
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City Developments (CIT SP) Resetting Our Expectations – Higher For Longer
Highlights • CDL’s share price has benefitted from the “capital recycling plus lower funding cost” theme. • Potential upside surprise from tweaking of the 60% ABSD for foreigners cannot be ruled out and would be positive for CDL. • Maintain BUY with a higher target price of S$11.50 implying 26% upside.
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Yinson Holdings (YNS MK) 3QFY26 Results Addendum: Superior Execution Is Key, While Ongoing Brazil Risks Remain Inherent
Highlights • 9MFY26F earnings on Enterprise Reporting (ER) reflect superior execution and capital recycling prowess. Beating consensus estimates, the ER profits were lifted by full recognition of the FPSO Atlanta loan buyout gain (as it was treated as a loan extinguishment income), and FPSO Agogo’s full charter recognition from early startup. We decided to treat the EPCIC obligation as an exceptional item (EI).
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DBS GROUP RESEARCH |
LIM & TAN |
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SEA Ltd TikTok Shop's Hyper Growth Concern Sea Ltd’s (SE) share price has dropped ~15% in the last two weeks prompting concerns about sector competition from TikTok Shop (TTS). Shopee’s GMV is growing near 20%, but TTS is growing much faster in our estimates. SE’s e-commerce business trading at just 1.1x EV to 12month sales vs e-commerce peers trading near 2.5x. Maintain BUY on SE with unchanged TP of USD205. A potential exit of Lazada be the key catalyst for a stable duopoly in SE Asia.
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CNMC Goldmine (S$1.24, up 5 cts) remains a prime beneficiary of rising gold prices amidst global uncertainties and increasing demand for the safe-haven asset. Gold has been a standout performer, averaging USD2,266/oz in 1H24 to USD3,197/oz in 1H25, before reaching an alltime-high ~USD4,770/oz as of Jan’26. Expectations of further rate cuts this year may increase the attractiveness of gold relative to other interestbearing assets. We view the all-time-high gold prices as beneficial for CNMC Goldmine, a gold mining company with operations in Malaysia. CNMC’s market cap stands at S$503mln and trades at 11.1x FY25F / 9.5x FY26F P/E and 6.6x P/B, with a dividend yield of 3.1%. We do not rule out potential for a higher dividend payout, CNMC has been more generous in recent years at >40% payout, supported by resilient cash flows and a net-cash position. Sky-high gold prices, coupled with an increase in gold output as targeted by the company, will render 2026 a year to watch. We have a BUY recommendation on CNMC Goldmine with a target price of S$1.53, based on a blend of 12.2x FY26F P/E (20% discount to peers average) and DCF. Our conviction level in CNMC Goldmine has increased and will be putting CNMC Goldmine in our “Alpha” portfolio alongside SPDR GOLD ETF shares as we believe both will benefit from “risk-off” due to macro and geo-political uncertainties as well as continued “dedollarization” theme. |
| LIM & TAN | |
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The Business Times reported that back in February last year, the market was agog as a power struggle erupted at City Developments Ltd ($9.10, up 6 cents) following the controversial appointment of two independent directors. Less than a year on, the property group’s oncedepressed shares are rising fast – and some analysts see “multiple tailwinds” lifting them much higher. CDL’s market cap stands at S$8.1bln and currently trades at 21.0x forward PE and 0.9x PB, with a dividend yield of 0.9%. Consensus target price stands at S$8.69, representing 4.5% downside from current share price. Given that share price has done well recently and is now above consensus price, we maintain a HOLD on CDL.
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