DBS’ 1Q26 earnings of S$2.9bn were within our estimates, at 26% of our FY26e forecast, with record total income of S$5.95bn and ROE of 17.0%. 1Q26 DPS raised 8% YoY to 81 cents (including 15cents capital return). NIM compressed 23bps YoY to 1.89% but only 4bps QoQ as deposit growth (+12% YoY, Casa ratio up to 55%) and hedging absorbed lower rates. Loans grew 4% YoY. The standout was non-II: fee income +16% YoY on record WM fees of S$907mn (+25% YoY), with transaction services and treasury customer sales also at record highs and markets trading rebounding to S$389mn. CIR increased slightly to 38.7% (1Q25: 37.5%). SP normalised to 14bps (vs 36bps in 4Q25), confirming the prior quarter’s real estate downgrade was idiosyncratic; NPL stable at 1.0%. Management held FY26 guidance largely unchanged, with total income around 2025 levels, SP at 17-20bps and GP buffers ample against Iran second-order risks.

Glenn Thum
Research Manager
glennthumjc@phillip.com.sg

Singapore stocks ended lower on Wednesday (Apr 29), as the ongoing conflict in the Middle East entered its third month. The Benchmark Index fell 0.6%, or 26.72 points, to close at 4,860.97.

Wall Street oscillated on Wednesday (Apr 29), as investors juggled spiking crude prices, the US Federal Reserve’s interest-rate decision, and a quartet of high-profile earnings released after the closing bell. The Dow Jones Industrial Average fell 280.12 points, or 0.57%, to 48,861.81, the S&P 500 lost 2.85 points, or 0.04%, to 7,135.95 and the Nasdaq Composite gained 9.44 points, or 0.04%, to 24,673.24.

SG

Lum Chang Creations will hold an EGM on May 25 to seek shareholder approval for its proposed transfer from Catalist to SGX’s mainboard, alongside a 1-for-1 bonus issue and a placement to meet shareholding spread requirements.

Hong Leong Asia raised S$142.3mn through a placement of 50mn new shares at S$2.90 each, a 5.76% discount to its last-traded VWAP, with proceeds earmarked primarily for investments, acquisitions and debt repayment.

CapitaLand Investment posted S$487mn in Q1 revenue, up from S$444mn a year earlier, driven by a 10% rise in fee-related revenue to S$310mn, partly offset by a 14% decline in real estate investment business revenue to S$207mn following asset divestments.

Aspial Lifestyle will transfer its listing from SGX’s Catalist board to the mainboard on May 4, after parent Aspial Corp divested 10mn shares at S$0.31 each to bring its public float above the required 15% threshold.

ComfortDelGro Engie and SP Mobility have won contracts from LTA subsidiary EVe to deploy EV fast-charging hubs across eight HDB sites, each with six to eight 50kW fast chargers, as Singapore pushes to have at least one such hub in every HDB town by end-2027.

Pacific International Lines posted a 21.7% decline in net profit to US$1bn for 2025, as lower freight rates weighed on earnings despite a 17% rise in container volumes to 2.6 million TEUs.

Wilmar reported a 22.8% decline in Q1 net profit to US$265.6mn, as unrealised mark-to-market hedging losses from the Iran war and weaker associate contributions overshadowed a 21.9% rise in revenue to US$19.8bn.

US

Alphabet posted Q1 revenue of US$94.7bn and EPS of US$5.11, both ahead of estimates, driven by its cloud unit which reported US$20bn in sales and a backlog that nearly doubled to over US$460bn, as AI demand accelerates across its business.

Amazon reported Q1 revenue of US$181.5bn, up 17%, with AWS growing 28% to US$37.6bn, its fastest rate in over three years, though heavy data centre spending of US$44.2bn in the quarter dragged trailing free cash flow down to US$1.2bn from US$25.9bn a year earlier.

Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, The Edge Singapore, PSR

Stoneweg Europe Stapled Trust– Rental indexation to drive organic growth

Recommendation: BUY; TP S$1.89; Last close: S$1.5400; Analyst Darren Chan

• 1Q26 indicative DPU of 3.423 €cents rose 1.5% YoY, in line with our estimates and forming 25.6% of our FY26e forecast. 1Q26 NPI declined 1.3% YoY due to asset divestments ahead of capital recycling into investments completed end-March 2026. On a like-for-like basis, NPI increased 2.3%, driven by a 3.7% growth in logistics/light industrial. Distributable income edged up 0.4% YoY, while DPU outpaced at 1.5% on the back of security buybacks (2.1mn securities repurchased YTD).
• Portfolio occupancy inched up 0.2ppt QoQ to 92.8%, with 37k sqm of leases (2.3% of portfolio) secured in 1Q26 at a positive rent reversion of 3.9%. €85mn of investments were deployed in 1Q26, comprising a €35mn logistics asset at a 6.0% NOI yield and a €50mn additional investment into AiOnX via a mandatory convertible loan (MCL) carrying a fixed 7.25% annual cash coupon, which is expected to drive a c.2% DPU accretion.
• Maintain BUY with an unchanged DDM-derived TP of €1.89 and no change to our forecasts. SERT’s portfolio is c.8% under-rented, providing scope for further positive rent reversions. Its investment in AiOnX offers both recurring coupon income and meaningful NAV upside potential as development milestones are achieved. Amid rising inflation stemming from the Middle East conflict, SERT’s portfolio is relatively resilient given rental indexation across most leases (est. 3% annual rental growth), which should drive organic growth. In addition, exposure to higher utility costs is limited, as these are largely borne by tenants. FY26e DPU is expected to remain in line with FY25, implying an attractive 8.7% dividend yield, while trading at a compelling 0.75x P/NAV.

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