Why Did UOB Drop? Are Genting, SIA, and Wilmar Set for Rally or Downfall?
$UOB(U11.SI)$ reached an all-time high today after releasing its earnings report but later closed down 0.2%.
Over the past eight quarters, UOB has posted gains on earnings day only twice.
data from bloomberg
NII Beats Plus $2 Billion Buyback: Management Boosts Market Confidence
Revenue miss: SGD 3.461 billion, missing the estimated SGD 3.587 billion (missed by 3.51%), up 1.5% YoY.
data from bloomberg
Net Income beats: SGD 1.52 billion, beating Bloomberg’s estimate of SGD 1.48 billion, up 1.54% YoY.
Net Interest Income beats 3%: SGD 2.451 billion, exceeding the expected SGD 2.378 billion (beat by 3.08%), continuing a modest growth trend over the past four quarters.
Final dividend of SGD 0.92 per share and a special dividend of SGD 0.50 per share, to be distributed in two tranches in 2025.
The company announced a SGD 3 billion capital return plan, including SGD 2 billion in share buybacks. The buyback is expected to support the stock price, while the management's positive outlook has boosted market confidence.
For the full year, net interest income remained stable at SGD 9.67 billion, supported by healthy loan growth. Net fee income increased 7%, mainly driven by wealth management, credit card, and loan fees.
UOB's CEO Wee Ee Cheong stated during the earnings briefing:
"Our long-term investments in the region are paying off with early results, the momentum is picking up, and we expect to see sustained revenue growth this year."
However, it's worth noting that the adjusted net profit YoY growth is only 1.54%, lower than the 9% growth in GAAP net profit. Unlike NII, the overall profit and revenue trends are declining.
Are Genting, SIA, and Wilmar Set for a Rally or Downfall?
$Genting Sing(G13.SI)$: Bloomberg estimates an adjusted EPS of 0.01 and revenue of SGD 654 million. Over the last eight quarters, Genting has missed EPS estimates 5 out of 8 times.
$SIA(C6L.SI)$ : Bloomberg projects revenue of SGD 5.183 billion and an adjusted net income of SGD 1.518 billion. Over the past eight quarters, SIA has missed EPS forecasts 5 times but beaten revenue expectations 7 times.
$Wilmar Intl(F34.SI)$: Bloomberg consensus expects an EPS of 0.08 (no revenue guidance available). Wilmar has beaten EPS estimates 7 out of the last 8 quarters but missed revenue 5 times.
Will SIA and Genting Singapore benefit from the tourism industry?
Will earnings this week continue this upward momentum?
Which SGX company do you favor most?
Leave your comments and also post to win tiger coins~
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The surged is buoyed by DBS Group Holdings — the Singapore Exchange ’s largest stock by market capitalisation — which reported record full-year net profit of $11.4 billion.
The SGX stocks that i favour most are $YZJ Shipbldg SGD(BS6.SI)$ and $DBS Group Holdings(D05.SI)$. They will continue its upward trend / momentum judging from the good news of our GDP and budget 2025.
I believe that SIA and Genting will benefit from the tourism industry in the near future. Our air traffic has increased and pass pre-COVID numbers.
UOB’s latest earnings report showed steady performance, with net income and net interest income beating expectations, though revenue slightly missed. The SGD 3 billion capital return plan, including SGD 2 billion in share buybacks, is a strong move that should support the stock price. This reinforces my confidence in bank stocks as a stable and rewarding investment.
Compared to other sectors, UOB, OCBC, and DBS offer strong fundamentals, reliable dividends, and less price fluctuation, which align with my trading style. I believe these banks will continue to perform well, making them my preferred choices in SGX.
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