#OCBC’s net profit for the third quarter ended September rose 9 per cent to S$1.97 billion, from S$1.81 billion in the previous corresponding period.
The bank on Friday (Nov 8) said this was underpinned by higher non-interest income and lower allowances.
The earnings beat the S$1.9 billion consensus forecast in a Bloomberg survey of four analysts.
#UOB’s net profit for the third quarter ended September 2024 rose 16 per cent year on year to S$1.61 billion, from S$1.38 billion the year before.
Its results released Friday (Nov 8) beat the S$1.51 billion consensus forecast among four analysts polled by Bloomberg.
#Sats Q2 profit trebles to S$69.7 million, declares S$0.015 dividend per share
Hot stock: #DBS crosses S$40 for first time to hit new high on strong results, S$3 billion share buyback plan.
Before the market opened on Thursday (Nov 7), Singapore’s largest lender reported that its Q3 net profit rose 17 per cent year on year to S$3.03 billion from S$2.59 billion the year before.
This exceeded the S$2.76 billion consensus forecast among four analysts polled by Bloomberg.
An interim dividend of S$0.54 for each ordinary share was declared, resulting in estimated total dividends payable of S$1.54 billion, and up from S$0.48 per share in the same period a year earlier.
Additionally, DBS’ board has established a new S$3 billion share buyback programme where the bank’s shares will be purchased in the open market and cancelled.
The programme marks the first time that repurchased shares will be cancelled. Buybacks under it will be carried out at the management’s discretion, subject to market conditions.
Based on the bank’s balance sheet as at September 2024, it is estimated to reduce the fully phased-in CET-1 ratio by around 0.8 percentage point when completed.
Bloomberg Intelligence credit analyst Rena Kwok said that DBS will retain about S$6 billion in CET-1 excess capital upon completion of the buyback, above its targeted range of 12.5 to 13.5 per cent.
The programme comes as part of its board’s capital management initiatives, noted DBS, adding that it is expected to provide a “permanent lift” to EPS in addition to higher return on equity.
Deputy chief executive Tan Su Shan said: “The buyback programme expands our toolkit for capital management. The considerable amount of capital we have returned in recent years has been a distinguishing hallmark that remains well supported by our financial strength.”
She is due to succeed chief Piyush Gupta when he retires at the next annual general meeting on Mar 28, 2025.
She also said: “I am committed to continuing with this approach when I take over from Piyush.”
Trump’s potential tariff would dent the margin of Chinese auto part companies, as theyhave >20% revenue coming from the US market. Nexteer is the biggest victim, andFuyao Glass the biggest beneficiary. China’s PV insurance registrations grew by 30%yoy/39% mom/6% wow during 28 Oct-3 Nov 24, in line with expectations. MaintainMARKET WEIGHT. Top BUYs: Geely, CATL, Fuyao Glass and Desay SV. We replaceTuopu and Minth with Fuyao Glass in our top BUY list.
Trump’s election victory and high tariffs may reshape the structure of China’sautomobile supply chain. On 6 Nov 24, Donald Trump won the 2024 US presidentialelection, continuing his strong stance on protecting the US domestic manufacturing,particularly the automobile industry. During his campaign, Trump pledged that if elected, hewould impose the highest tariffs in history on imports, including a 60% tariff on all Chineseimports and a 20% tariff on imports from other countries. He also threatened a 200-1,000%tariff on cars imported directly from China and proposed a tariff of over 200% on vehiclesimported from Mexico, effectively targeting Chinese auto imports.
Fuyao Glass has two plants in the US – one in Illinois and one in Ohio, making it the only Chinese auto part company with local production in the US
SIA ENG:
The company’s financial performance is anticipated to improve gradually over the next few years. Core earnings per share (EPS) are projected to grow by 18.7% in FY25, 8.1% in FY26, and 10% in FY27. The dividend per share (DPS) is also expected to rise, offering a yield of 4.42% by FY27. The company’s net profit margin is forecasted to increase, driven by higher operational efficiency and favorable contract renegotiations with SIA.
CGS International maintains an “Add” rating for SIA Engineering with a target price of S\$2.65, reflecting a 6.4% upside from the current price of S\$2.49. -CGS
Singpost:
SPOST is evaluating strategic options for its Australian operations and exploring monetization opportunities for non-core assets. Key decisions expected by end-FY25 include the sale of the freight forwarding business and assessment of sale options for Australian assets, estimated at a combined value of S\$1.1 billion.
The report reiterates an “Add” rating for SPOST, believing that it has S\$2.5 billion worth of assets ready for value unlocking over the next three years. The target price is lowered to S\$0.58, with successful execution of value unlocking plans as a potential re-rating catalyst.- CGS
SingPost declared an interim dividend of 0.34 cents per share for the half year ended 30 September 2024. The company currently trades at 17.6x forward PE and 1x PB, with a dividend yield of 1.7%. The consensus target price of 60 cents implies a potential return of 15%.- LimTan
DBS
DBS Group reported a record-breaking net profit of SGD 3.03 billion for Q3 2024, a 15% increase from the previous year and an 8% rise from the previous quarter. Total income rose by 11% to SGD 5.75 billion, driven by balance sheet growth, record fee income from wealth management, and the strongest markets trading income in ten quarters. The cost-income ratio was 39%, and the net profit for the first nine months of 2024 was SGD 8.79 billion, an 11% increase year-over-year.
DBS announced a new SGD 3 billion share buyback program, which is expected to support its share price. However, management anticipates a slight decline in Group NIM, mostly offset by loan growth. The consensus target price for DBS is \$40.70, implying a potential return of 4% with a dividend yield of 5.5%. -LimTan
NetLink:
NetLink declared a higher 1HFY25 final dividend of 2.68 S cents per share, implying an annualized dividend yield of around 5.9%. The trust’s effective average interest rate remained stable at 2.7%, with 74.1% of its borrowings on fixed rates. Management is positive about refinancing opportunities with expected interest rate cuts in FY25.- UOBKH
Dividends and special distributions:
PEC Ltd: 2.0 cents Final & 1.5 cents Special, ex-dividend date 8 Nov, payable 25 Nov.
MTQ: 0.5 cents Interim, ex-dividend date 8 Nov, payable 20 Nov.
Unionsteel Holdings Ltd: 1.3 cents Final, ex-dividend date 12 Nov, payable 27 Nov. -LimTan
11.11 campaign
The initial phase of the 11.11 campaign exhibited revitalizing momentum for the Internet sector in China. Key companies such as Alibaba and JD.com spearheaded this momentum with significant year-on-year growth in various segments. For instance, gaming laptops saw a remarkable 120% increase in sales. JD’s offline channels, including JD Mall, experienced over 100% year-on-year growth in sales. The home appliance sector also thrived with brands like Xiaomi and Haier doubling their sales. -UOBKH
Alibaba (9988 HK)
Recommendation: BUY
Share Price: HK\$96.2
Target Price: HK\$130
Alibaba is maintaining its momentum with a target price of HK\$130.00, which implies a 15.6x FY25F PE, below its historical mean of 21x. This favorable outlook is driven by strategic implementations by Taobao Tmall Group (TTG) to bolster monetization in the second half of 2024. Currently, Alibaba is trading at 10.6x FY25F PE, 1.2 standard deviations below its historical mean. -UOBKH
JD.com (9618 HK)
Recommendation: BUY
Share Price: HK\$152.0
Target Price: HK\$197
JD.com is set to achieve a target price of HK\$190.00, implying a 12.3x 2025F PE, below its historical mean of 22x. Despite a subdued outlook for the second half of 2024, JD is committed to enhancing its 1P supply chain with lower procurement costs and enriching 3P merchants and white label products. JD currently trades at 10.3x 2025F PE, 2.2 standard deviations below its historical mean. -UOBKH
Tech stocks:
In a flash note on Wednesday, UOB Kay Hian cautioned that while Trump’s win could benefit Malaysian tech and glove industries through potential trade diversion, his proposed tariff hikes, including a potential 20% blanket import tax and 60% on Chinese goods, might also have mixed impact.
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