DAILY REVIEW | 07 MARCH 2025 Lim & Tan Securities

Comprehensive Analysis of Key Companies in the Singapore Market

ST Engineering: Optimizing Global Aerospace Network for Enhanced Competitiveness

ST Engineering ($6.10, up 13 cents) announced a strategic initiative to rationalize its airframe Maintenance, Repair and Overhaul (MRO) operations in the United States. The company will consolidate its U.S. airframe MRO activities within its existing facilities in Pensacola, Florida and San Antonio, Texas, while progressively winding down operations at its Mobile, Alabama subsidiary [[Page 1]].
This move is part of ST Engineering’s continuous network optimization efforts to streamline operations and add newer, more modern facilities to its global aerospace network. The expanded capacity, combined with this capacity transition, will strengthen the group’s ability to scale and grow its Commercial Aerospace business [[Page 1]].
Despite the recent share price run-up, the research team at Lim & Tan Securities remains positive on ST Engineering’s fundamentals and recommends an “Accumulate on Weakness” rating on the stock. The company’s market capitalization stands at S$19 billion and trades at 22.5x forward PE and 6.9x current PB, with a dividend yield of 2.8% [[Page 1]].

DBS Group: Delivering Record Profits and Shareholder Returns

DBS Group ($45.96, up 0.34) reported a stellar financial performance in FY2024, with record total income of S$22.3 billion and net profit rising 11% to an all-time high of S$11.4 billion. The bank’s return on equity (ROE) was 18.0%, one of the highest among developed market banks [[Page 2]].
Despite facing challenges from muted loan growth, DBS managed to grow net interest income by 6% through judicious balance sheet management. The bank also saw a substantial increase in non-interest income, with commercial book non-interest income rising 22% to a record S$6.33 billion, bolstered by buoyant investor sentiment [[Page 2]].
In May 2024, DBS became the first Singapore-listed company to cross S$100 billion in market capitalization, and delivered a total shareholder return of 51% for the year, the highest in its history outside crisis-rebound years [[Page 2]].
Looking ahead, DBS expects pre-tax profit to be around 2024 levels, despite potential headwinds from declining interest rates. The bank will continue investing in technology and advancing its sustainability agenda, as it executes on its net-zero commitments [[Page 2-3]].
At the current price of $45.96, DBS is capitalized at $131 billion and trades at 11-12x forward PE, 1.9x price to book, and a 5.2% yield (on normalized 60 cents/quarter in dividend payments). Lim & Tan Securities maintains an “Accumulate” rating on DBS, with a Bloomberg consensus 1-year target price of $49 per share [[Page 2]].

Chinese Property Market: Signs of Stabilization as Land Sales Improve

The Chinese property market is showing signs of stabilization, with state-backed developers starting to buy land at a premium again after the government eased limits on home prices to revive the slumping sector [[Page 3]].
According to a Bloomberg analysis, the number of land parcels that sold for at least 20% above the asking price accounted for 37% of deals this year, compared to just 14% for all of last year and 4.6% in 2023. Seven out of the 10 transactions this year involved state buyers, including China Resources Land, China Overseas Land & Investment, Poly Developments and Holdings Group, and Greentown China Holdings [[Page 3]].
The renewed interest in land deals signals that some state-backed developers are betting on an eventual rebound in the housing market, even as sales and prices continue to slide on weak consumer confidence. While not a full recovery, this is the latest sign that China’s property market is stabilizing [[Page 3]].
In response to dwindling land sales in recent years, more cities in China are encouraging land purchases by easing terms, including relaxing limits on how much profit developers can make selling new homes. This move is aimed at stemming the decline in the real estate market, which has been a drag on the country’s economy for more than four years [[Page 3]].

Insider Transactions and Share Buybacks

The report also provides updates on insider transactions and share buyback activities of various companies listed on the Singapore Exchange (SGX) [[Page 4]].
Some notable insider transactions include:
Hong Leong Asia: Kwek Leng Peck acquired 767,000 shares
Guocoland: Quek Leng Chan acquired 40,500 shares
Sing Investments & Finance Ltd: F.H. Lee Holdings Pte Ltd acquired 100,700 shares
Stamford Land Corp Ltd: Ow Chio Kiat acquired 108,300 shares
Singapore Shipping Corp Ltd: Ow Chio Kiat acquired 95,100 shares
The report also highlights several companies that have been actively repurchasing their own shares, including Raffles Medical Group, Trek2000, DBS, Global Testing Corp Ltd, and ST Engineering [[Page 4]].