DBS Group

Singapore banks to shine despite regional macros, competition from fintechs: Maybank

SINGAPORE (Mar 18): Maybank Kim Eng is keeping “positive” on Singapore’s banking sector while noting significant interest among Malaysian investors in Singapore banks from a flight-to-quality angle, and for their high dividend yields as the SGD appreciates.

More companies beat FY18 expectations this earnings season

SINGAPORE (Mar 5): The earnings season is over for now and more companies have beat their FY18 results expectations than missed, with large-caps mostly boosted by one-off gains, according to CGS-CIMB Research in a Monday report.

Analyst Lim Siew Khee says, “We think YTD FSSTI’s outperformance (+7%) was somewhat helped by fewer poor results in the last two months where the beats exceeded misses – a first in seven quarters. However, the quality was less sterling.”

Capital goods mainly attributed its beat to one-off gains, while REITs saw divestment gain distributions.

Ascendas Hospitality Trust kept at 'buy' on strong earnings visibility

SINGAPORE (Jan 30): DBS Vickers Securities is maintaining its “buy” call on Ascendas Hospitality Trust (A-HTRUST) with a target price of 98 cents, and is of the view that the trust’s asset-recycling strategy will continue to provide it earnings stability going forward.

The move comes after the manager of A-HTRUST posted a 3Q19 distribution per stapled security (DPS) of 1.45 cents, up 2.8% from a year ago and in line with expectations.

DBS Group announces its biggest 1H dividend, but is it sustainable?

SINGAPORE (Aug 20): Banking stocks are typically a favourite dividend play of investors who hunt for yield. This is because as banks grow, they tend to reward shareholders with a steady payout that usually increases gradually.

Missed the boat? DBS says Suntec REIT's rally is still sustainable

SINGAPORE (Dec 15): DBS Group is upgrading Suntec REIT to "buy" from "hold" with a revised target price of $2.30.

"We, like all sellside analysts, were blind-sided by Suntec’s past performance and missed the 30% share price rally in 2017," says analyst Mervin Song in a Friday report.

But with a multi-year upturn in the Singapore office rents on the horizon, Song argues that REITs with office exposure should trade above book value, as seen historically.

This bank just got an upgrade on its recent share price dip. Why?

SINGAPORE (Sept 14): OCBC has upgraded its rating on DBS Group to “buy” from “hold” with an unchanged fair value estimate of $22.50 due to the recent drop in its share price. 

This comes after the stock fell from its recent high of $22.25 in the past two months to close at a low of $20.38 yesterday. This translates to a share price decline of 8.4%, meaning about $4.8 billion of market value has been wiped off.

In a Thursday report, lead analyst Carmen Lee observes that DBS’s share price is up 17.5% year to date despite coming off from the high.

Keppel kept at ‘buy’ by DBS with $7.60 target price

SINGAPORE (Aug 18): DBS Group continues to like Keppel as a proxy to ride on property and offshore & marine recovery after announcing two divestments this week.

The group is selling its entire 100% stake in Keppel Lakefront (Nantong) Property Development to a subsidiary of China Vanke, for a consideration of RMB1.43 billion ($292 million).

See: Keppel Land China fully divests Waterfront Residences in Nantong for $75 mil gain

DBS kept at ‘hold’ despite record half-year earnings

SINGAPORE (Aug 7): DBS Group might have achieved record earnings of $2.35 billion for the first half of 2017 on the back of an 8% increase in 2Q earnings, but analysts are not impressed.

“1H17 earnings were slightly below our expectation and met 45% of our previous FY17 forecast of $5.1 billion,” says Maybank Kim Eng Research analyst Ng Li Hiang in a Monday report.

Meanwhile, CIMB Research analyst Yeo Zhi Bin says DBS’ results were in line with its forecast, but described the bank’s 2Q performance as “good but not great”.

DBS gets a ‘neutral’ from RHB for higher NPL guidance

SINGAPORE (Aug 4): RHB is maintaining its “neutral” rating on DBS Group with a slight increase in target price to $20.65 given guidance for higher NPLs from the oil & gas space.

In a Friday report, analyst Leng Seng Choon forecasts DBS’ NPL ratio to rise to 1.6% by end 2017 from 1.5% in 2Q17. DBS’ management has guided that asset quality stress from the oil & gas sector remains and also sees more NPLs coming from smaller non-state-owned players.

Singapore banks could use the scepticism: Bloomberg Gadfly

SINGAPORE (Aug 1): It took an earnings announcement from the smallest of Singapore's banks to shake the edifice of optimism that investors had built around all three of them. 

United Overseas Bank Ltd.'s 5.5% profit growth in the June quarter was better than what analysts had expected. Yet UOB's shares fell 2.2% on Friday (they closed 0.3% lower on Monday), dragging down stocks of bigger rivals -- DBS Group Holdings Ltd. and Oversea-Chinese Banking Corp.

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