OUE Real Estate Investment Trust (OUEREIT SP): Refocused, resilient and ready for growth
BUY Entry – 0.28 Target– 0.30 Stop Loss – 0.27
OUE Real Estate Investment Trust (OUE REIT) provides real estate investment services. The Company invests in income-producing real estate used primarily for retail, hospitality, and office purposes in financial and business hubs, as well as real estate-related assets. OUE REIT serves customers in Singapore and China.
Softer quarter on divestment and hospitality pullback. OUE REIT reported a YoY decline in revenue and NPI of 11.9% and 12.1% respectively for 1Q25. The lower figures reflect the absence of contributions from Lippo Plaza, following its divestment in December 2024, as well as a softer hospitality performance amid a more subdued trading environment compared to the previous year.
Strategic divestment. As of 27 December 2024, OUE REIT successfully completed the divestment of Lippo Plaza in Shanghai for a sale consideration of RMB1,917.0mn (S$357.4mn). This divestment will enhance portfolio resilience and provide financial flexibility for future growth.
Tourism-led tailwinds. The Singapore Tourism Board projects international visitor arrivals to reach between 17 and 18.5 million in 2025, with tourism receipts forecasted at S$29.0bn – S$30.5bn. A robust line-up of leisure events, including Lady Gaga’s four-night concert in May and the Formula 1 Grand Prix, alongside other performances are expected to boost inbound travel, supporting demand for OUE REIT’s centrally located hotels and retail assets.
Proactive debt management. Financing costs declined 11.3% YoY to S$22.6mn in 1Q25, supported by active refinancing and interest rate hedging. The weighted average cost of debt fell to 4.2% per annum, down from 4.7% in the prior quarter. A 25-basis-point drop in interest rates could further boost DPU by an estimated 0.03 Scents, offering additional upside.
1Q25 results review. Revenue and net property income (NPI) declining by 11.9% and 12.1% YoY to S$66.0mn and S$53.2mn, respectively. These declines were largely due to the divestment of Lippo Plaza and lower contributions from the hospitality segment. On a like-for-like basis, revenue and NPI fell by a more modest 3.9% and 4.1% YoY, underscoring the resilience of its Singapore portfolio.
We have fundamental coverage with a BUY recommendation and a TP of S$0.318. Please read the full report here.
Centurion Corporation Limited provides purpose-built workers and student accommodation services. Centurion owns, develops, and manages quality and purpose-built workers accommodation assets. Centurion serves customers worldwide.
Rising rate cut expectations. US weekly jobless claims rose by 6,000 to 222,000, signalling mounting economic risks driven by President Trump’s volatile tariff policies. Economists expect job losses to accelerate later this year in tariff-sensitive sectors such as retail and manufacturing, amid weakening business investment and growing employer caution. Broader economic momentum is also slowing, as reflected in the sharp decline in home sales, driven by rising concerns over inflation, employment prospects, and high mortgage rates. These signs of economic strain are reinforcing market expectations for Federal Reserve easing, with the CME FedWatch tool now pricing in a 61.3% probability of a rate cut by June. A potential rate cut would benefit Centurion by lowering financing costs for its expansion plans, improve funding conditions for future developments, and enhance property valuations.
REIT listing exploration. Centurion is exploring a potential REIT structure comprising stabilized PBWA and PBSA assets in mature markets like Singapore, Malaysia, and the UK. This could unlock asset value, enhance capital recycling, and deliver stable income for shareholders via a potential dividend-in-specie.
Stronger than anticipated revenue growth. Total revenue rose 22% YoY to S$253.6 million, while net profit after tax surged 118% to S$382.6 million, driven by high financial occupancy and rental rate uplifts across all key markets.
Expanding global footprint. As of 31 December 2024, Centurion operated 69,929 beds across 37 assets with AUM of S$2.5 billion. It added 2,552 new beds and has 7,662 beds under development for 2025-2026, including a new PBSA in Macquarie Park, Australia.
2H24 results review. Revenue increased 18% YoY to S$129.2 million from S$109.3 million in 2H23, while gross profit grew 27% to S$101.5 million, underpinned by sustained high occupancy and positive rental revisions. Despite a slight dip in PBWA occupancy in Malaysia, attributable to short-term foreign worker caps, strong rental performance and high occupancy in key markets like Singapore, the UK, and Australia offset this temporary weakness. Centurion declared a final dividend of 3.5 Scents per share for FY24, representing a 28.6% increase from the 2.5 Scents distributed in FY23.
We have fundamental coverage with a BUY recommendation and a TP of S$1.38. Please read the full report here.
Market consensus
(Source: Bloomberg)
Xiaomi Corp. (1810 HK): Venturing further into AI
BUY Entry – 49 Target – 55 Stop Loss – 46
Xiaomi Corp is an investment holding company primarily engaged in the research and development and sales of smartphones, the Internet of Things (IoT) and consumer products. The Company conducts its businesses primarily through four segments. The Smartphone segment is primarily engaged in the sales of smartphones. The IoT and lifestyle products segment primarily sells other in-house products (including smart TVs, laptops, artificial intelligence (AI) speakers and smart routers), ecological chain products (including IoT and other smart hardware products) and some consumer products. The Internet Services segment provides advertising services and Internet value-added services such as online games and fintech businesses. The Other segment provides hardware product repair services. The Company is also engaged in smart electric vehicles and other related businesses.
Introduction of MiMo, Xiaomi’s First Open-Source LLM. Xiaomi has unveiled MiMo, its first open-source large language model (LLM), specifically designed for complex reasoning tasks. Despite its relatively compact 7-billion-parameter architecture, MiMo has outperformed significantly larger models—such as OpenAI’s o1-mini and Alibaba’s Qwen-32B-Preview—on key public benchmarks like AIME24-25 (math reasoning) and LiveCodeBench v5 (code generation). Developed by Xiaomi’s specialized AI division, Core, the model leverages advanced pretraining and post-training techniques to enhance its reasoning capabilities. The launch of MiMo marks a strategic move to embed generative AI more deeply across Xiaomi’s hardware ecosystem—including smartphones and its growing electric vehicle (EV) portfolio—potentially enabling more seamless user experiences and strengthening its competitive edge.
Reclaiming Leadership in China’s Smartphone Market. In Q1 2025, Xiaomi regained the top position in China’s smartphone market for the first time in a decade. The company shipped 13.3 million units, up from 9.5 million in Q1 2024, boosting its market share from 14% to 19%. This growth reflects strong ecosystem synergies across its smartphone, AIoT, and mobility platforms, as well as effective execution under China’s national subsidy programs. The combination of renewed momentum in core hardware and innovation in AI positions Xiaomi for continued growth.
Scaling EV Production to Meet Demand. Following the successful debut of its SU7 electric sedan and Ultra performance variant—with over 200,000 units shipped in under a year—Xiaomi is expanding plans for a second EV factory in Beijing. The expansion will incorporate an additional 52 hectares to accommodate rising demand. Co-founder Lei Jun has also raised Xiaomi’s 2025 sales target to 350,000 vehicles. The upcoming launch of the YU7 SUV this summer aims to further diversify the company’s lineup and compete directly with Tesla’s Model Y and other players in China’s competitive EV market.
FY24 results review. Revenue increased by 35.0% YoY to RMB365.9bn in FY24, compared with RMB271.0bn in FY23. Net profit increased by 34.9% to RMB23.6bn in FY24, compared to RMB17.5bn in FY23. Basic EPS increased to RMB0.95 in Fy24, compared to RMB0.70 in FY23.
Market consensus.
(Source: Bloomberg)
Trip.com Group Ltd. (9961 HK): Upcoming seasonality play
Trip.com Group Ltd is a China-based company mainly engaged in the operation of one-stop travel platform. The Company’s platform integrates a comprehensive suite of travel products and services and differentiated travel content. Its platform aggregates its product and service offerings, reviews and other content shared by its users based on their real travel experiences, and original content from its ecosystem partners to enable leisure and business travelers to have access to travel experiences and make informed and cost-effective bookings. Users come to its platform for any type of trip, from in-destination activities, weekend getaways, and short-haul trips, to cross-border vacations and business trips.
Upcoming May Day Holidays. The May Day holidays in China, officially observed from May 1 to May 5, are expected to drive a significant uptick in travel activity. The holiday travel rush is anticipated to span from April 29 to May 6, with peak passenger flow projected on May 1. Short-haul outbound travel is showing strong momentum, supported by rising demand for both group tours and independent travel. Market data reveals a 60% year-over-year increase in group tour bookings and a 29% rise in independent travel among mainland Chinese tourists. Additionally, flight bookings for the holiday period have exceeded 750,000 for both outbound and inbound routes. This surge in travel demand is likely to benefit Trip.com Group Ltd. positively.
Trip.com Group share price seasonality chart
(Source: Bloomberg)
New Initiatives to Attract Consumers. Trip.com Group recently launched its 2025 Word-of-Mouth Travel Rankings, offering users a fresh way to explore global destinations across its platforms. The rankings feature 16 themed global lists and “Recommended Itineraries,” combining user reviews, AI-driven insights, and curated content to streamline the travel planning process—from inspiration to booking. These itineraries link top-rated hotels, attractions, restaurants, and nightlife experiences, reflecting real user journeys and enabling personalized planning through Trip.com’s intelligent recommendation system. Travelers can explore seasonal highlights, save customized routes, and receive tailored suggestions based on their preferences and travel dates. The rankings cover 291 destinations, over 1,500 hotels, 800 attractions, 800 restaurants, and nearly 400 night tour options—enhancing the overall user experience and engagement on the platform.
Expanding Strategic Partnerships. Trip.com has also deepened its partnership with Emirates, further integrating flights, hotels, and loyalty programs to enrich travel offerings in key global markets. The next phase of this collaboration will focus on unlocking growth opportunities in new markets and customer segments. Both companies plan to expand Trip.com’s global footprint by leveraging Emirates’ extensive international network and coordinating joint promotional campaigns, particularly in Asia and Europe—strategic regions for both partners.
FY24 earnings. Revenue increased by 19.8% YoY to RMB53.4bn in FY24, compared to RMB44.6bn in FY23. Net Profit increased by 72.2% to RMB17.2bn in FY24, compared to RMB10.0bn in FY23. Basic earnings per share is RMB26.1 in FY24, compared to a basic earnings per share of RMB24.8 in FY23.
Market consensus.
(Source: Bloomberg)
SAP SE (SAP US): Resilience of software services
BUY Entry – 290 Target – 320 Stop Loss – 275
SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.
Capital inflow to Germany. The continued depreciation of the U.S. dollar, driven by U.S. policy instability and heightened trade tensions, has prompted investors to reduce their exposure to the U.S. market. This loss of confidence in the dollar has increased investment in emerging markets. Germany has recorded an increase in positive net inflows since February, especially in its equities market, signalling increased investor confidence. As Europe’s economy strengthens, businesses will accelerate digital transformation. SAP, as the region’s leading enterprise software provider, is well-positioned to capitalize on increased corporate investment in technology and cloud-based solutions.
Fund flow – Germany
(Source: Bloomberg)
Resilient against tariffs. SAP reported a strong Q1 performance with a 58% YoY increase in operating profit to €2.5bn, surpassing expectations. Revenue rose 11% to €9bn, and EPS jumped 79% to €1.44. Cloud backlog grew 29%, and SAP reaffirmed its full-year cloud revenue forecast of €21.6-€21.9bn. SAP remains crucial in helping businesses navigate global tariff uncertainties and its 86% recurring revenue presents SAP as predictable and resilient amidst the current volatile environment.
1Q25 results. SAP SE delivered a 12.1% increase in revenue to €9.01bn. Earnings per share was €1.44. Cloud revenue grew 27% to €4.99bn and Cloud ERP Suite revenue rose 34% to €4.25bn.
Market consensus
(Source: Bloomberg)
ICICI Bank Ltd (IBN US): Growth expectations remain strong
ICICI Bank Limited operates as a bank. The Bank offers saving accounts, loans, debit, credit cards, insurance, investments, mortgages, and online banking services. ICICI Bank serves customers worldwide.
India’s economic growth remains robust. Although the IMF and the Reserve Bank of India (RBI) have slightly downgraded their GDP growth forecasts for India in 2025 (IMF from 6.5% to 6.2%; RBI from 6.7% to 6.5%), strong domestic demand, improving inflation (with retail inflation dropping to 3.34% in March), and ongoing policy support indicate that India’s financial system exhibits good resilience. The Industrial Credit and Investment Corporation of India is also expected to benefit from India’s long-term economic growth trends.
Reserve Bank of India has relaxed liquidity requirements. Recently, the RBI eased the regulatory requirements for the Liquidity Coverage Ratio (LCR), which is expected to increase the LCR by about 600 basis points, releasing more available capital. This will further enhance the bank’s lending capacity and help it seize credit recovery opportunities following interest rate cuts.
Financial health is strong. The bank’s deposits grew by 11.4% year-on-year to $173.9 billion in Q4 of FY25 (ending March 2024). Domestic loan growth increased by 13.9% to $153.4 billion. The net non-performing asset (NPA) ratio stands at 0.39%. The total capital adequacy ratio is at 16.55%, with a CET-1 ratio of 15.94%.
3Q25 results. ICICI Bank delivered an increase in revenue to US$3.27bn above the consensus of US$3.24bn. Earnings per share was US$0.40, beating expectations by US$0.02. Net profit increased by 14.8% YoY to US$1.4bn (₹11,792 crore) in 3Q25. Net interest income (NII) increased to US$2.4bn (₹20,371 crore), up by 9.1% YoY. Net interest margin was at 4.25% in 3Q25 compared to 4.27% in 2Q25 and 4.43% in 3Q24.
Trading Dashboard Update: Add China Merchant Banks Co Ltd. (3968 HK) at HK$42.5, Trip.com Group Ltd. (9961 HK) at HK$460 and Makemytrip Ltd (MMYT US) at US$102.
