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PHILLIP SECURITIES |
CGS INTERNATIONAL |
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DBS Group Holdings Ltd Dividends maintained despite earnings decline
▪ DBS’ 4Q25 adjusted earnings of S$2.4bn were slightly below our estimates, at 95% of our FY25e forecast. 4Q25 DPS raised 35% YoY to 81 cents (comprising 66 cents ordinary dividend and 15 cents capital return dividend), total FY25 DPS of S$3.06 (+38% YoY). ▪ NII fell 4% YoY despite loan and deposit growth as NIMs declined 22bps YoY to 1.93%. WM fees continued to surge (+24% YoY), driving 14% growth in fee income. Higher SPs of S$451mn (+81% YoY) from a HK real estate NPL hurt earnings. DBS maintained its FY26e guidance for NII to be slightly below 2025 levels, non-interest income growth in the high single digits, credit costs to normalize at 17-20bps, and PATMI below 2025 levels from the lower interest rate environment. Capital return dividend (60cents/share per year) until FY27 and step up of 6cents/share per quarter until 3Q26 policy has been maintained.
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CSE Global CSE to benefit from AWS DC expansion
■ AWS’s stepped-up data centre capex reinforces medium-term demand for DC electrification, positioning CSE for sustained order opportunities. ■ Projected FY25F order wins of c.S$1bn could lift orderbook to c.S$762m, underpinning 30% yoy net profit growth to S$44m in FY26F, we estimate. ■ Reiterate Add with a higher TP of S$1.50, pegged to 19x FY27F P/E.
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LIM & TAN |
LIM & TAN |
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Leading global real asset manager, CapitaLand Investment / CLI ($3.17, up 1 ct) recorded stronger Operating PATMI of S$539 million for the Financial Year (FY) 2025, up 6% year-on-year (YoY) from S$510 million in FY 2024. At the same time, CLI continued to scale its platform, with FUM growing 7% to S$125 billion as at end-2025, supported by positive fundraising momentum as total equity raised almost doubled to S$6.5 billion. The improved Operating PATMI of S$539 million in FY 2025 was driven by higher contributions from the listed funds business, lower interest costs and reduced operating expenses. These were partially offset by growthrelated expenses to scale the private funds and lodging management business, as well as lower contributions following asset divestments. At its last traded price of $3.17, CLI is capitalized at $15.8bln, forward PE is 25x, price to book is 1.3x while dividend yield is 3.8%. With consensus target price at $3.30, upside is limited from here and the stock has already done very well since we had included it in our Alpha portfolio in Nov’25 when it was trading at only $2.64. We had downgraded CLI to a HOLD recently and we maintain a HOLD for now.
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NTT DC REIT’s (US$1.01, up 1 cent) business update for the period ended 31 December 2025 highlights a generally stable operating and financial performance, with results largely tracking the adjusted IPO forecast despite some operational variances across the portfolio. The update focuses on the REIT’s ability to maintain earnings resilience, strengthen leasing momentum, and preserve balance sheet flexibility amid a still-evolving macro and data-centre demand environment. Overall, the REIT continues to demonstrate income stability and operational discipline, supported by long-term leases and sponsor backing. NTT Reit’s market cap stands at S$1.03bln and trading at 7% consensus dividend yield and with consensus 1 year target price at US$1.20, we have an “Accumulate On Weakness” rating on NTT DC REIT as it is a beneficiary of the robust data centre growth prospects as well as moderating interest rate environment. |
| DBS GROUP RESEARCH | |
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NTT DC REIT <3Q 25/26 business updates> Earnings in line with IPO projections, with potential for further upside in the coming quarter.
Distributable income is in line with IPO projections despite lower occupancy rate Key positives: i) distributable income that is in line with IPO projections, ii) committed occupancy expected to improve to 97.3%, iii) capital management metrics remained stable What we are watching out for: i) further backfilling of vacancies in the portfolio, ii) rental reversions especially for the lease renewal with NTT Group at SG1, iii) overall borrowing costs Maintain BUY with unchanged TP of USD1.20
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