Comprehensive Analysis of Listed Companies
Broker: Lim & Tan Securities
Date of Report: 25 February 2025
Market Overview
The financial markets have displayed a mixed performance with the FSSTI Index closing at 3,927.8, down by 0.1% for the day, yet up 1.9% month-to-date (MTD) and 3.7% year-to-date (YTD). In contrast, US stocks experienced declines ranging from 0.5% to 1.2% due to deteriorating consumer sentiment and weak corporate results.
PropNex Limited
PropNex has reported a net profit of S\$40.9 million on revenue of S\$783.0 million for the financial year ending 31 December 2024. Despite a 23.4% year-on-year decrease in commission income from project marketing services, which fell to S\$185.6 million, the company showed resilience with a slight increase in agency services income to S\$591.6 million. The private resale market proved robust with a significant 24.0% rise in transactions compared to the previous year, indicating strong demand.
In the final quarter of 2024, PropNex saw a notable rebound in private new home launches, with developers selling 3,420 units, significantly higher than the 1,092 units sold in the preceding quarter. The company anticipates that the financial impact of these transactions will be realized in the first half of 2025. The Board has proposed a final cash dividend of 3.00 cents per share, alongside a special cash dividend of 2.50 cents, marking the company’s 25th anniversary in 2025, bringing the total dividend to 7.75 cents, reflecting a payout ratio of 140.1% and a dividend yield of 6.8%. The recommendation for PropNex shares is to HOLD, considering the fair valuations and attractive yield.
Yangzijiang Financial Holdings
Yangzijiang Financial Holdings reported total income of S\$326.2 million for the financial year 2024, a decline from S\$348.4 million in 2023, primarily due to lower interest income from debt investments in China. Nevertheless, the company showed growth in cash management activities and fund investments, with maritime fund assets increasing significantly by 150% to S\$579.3 million.
The Group’s strategic shift towards diversification reduced its exposure to single-asset and single-country risks, successfully achieving its mid-term target of lowering China exposure below 50%. The net profit attributable to equity holders surged by 51% to S\$304.6 million. The board proposes a final dividend of 3.45 Singapore cents per share, representing a 40% payout ratio and a yield of 6.1%. The recommendation is positive, indicating Yangzijiang Financial is well-positioned for future growth, especially with its expanding maritime portfolio.
Frasers Logistics Trust
Frasers Logistics Trust closed at S\$7.44. The trust continues to demonstrate strong resilience and operational efficiency, providing consistent returns to its investors. The recommendation remains favorable due to its solid fundamentals and growth potential in the logistics sector.
Mapletree Pan Asia Commercial Trust
Mapletree Pan Asia Commercial Trust, trading at S\$6.86, is recognized for its strategic properties across Asia and has maintained a robust performance due to its diversified portfolio. The outlook remains positive, driven by the recovery in the commercial property sector.
Mapletree Industrial Trust
Mapletree Industrial Trust is currently valued at S\$6.76. Its strong fundamentals in the industrial sector, paired with a focused management strategy, positions it well for future growth. The recommendation is to hold, reflecting confidence in its operational stability.
Mapletree Logistics Trust
Mapletree Logistics Trust is valued at S\$6.64, showing resilience through strategic acquisitions and operational efficiencies in logistics. The outlook remains positive, and it is recommended to continue holding the shares.
DBS Bank
DBS Bank, with a trading price of S\$6.15, continues to be a leader in the banking sector, demonstrating strong financial health and growth prospects. The recommendation is to hold, given the bank’s consistent performance and potential for future growth.
Jardine Cycle & Carriage
Jardine Cycle & Carriage, valued at S\$7.54, showcases strong fundamentals and a diversified business model. The recommendation is positive, reflecting confidence in its growth trajectory.
Jardine Matheson
Jardine Matheson trades at S\$8.30, maintaining a diversified portfolio across various sectors. The company is recommended as a hold, given its solid performance and potential for future growth.
Singapore Airlines
Singapore Airlines, trading at S\$8.90, has shown resilience in the aviation sector, rebounding from previous challenges. The recommendation remains positive based on its recovery trajectory and strong operational performance.
UOB Bank
UOB Bank is currently valued at S\$9.62. The bank’s solid fundamentals and strategic initiatives position it well for growth. The recommendation is to hold, reflecting confidence in its ongoing performance and market adaptability.
Thai Beverage
Thai Beverage, trading at S\$10.08, continues to be a leader in the beverage sector, with robust market dynamics supporting its growth. The recommendation remains favorable, reflecting strong operational performance.
