Friday 2 May 2014

DBS Group Holdings

UOBKayhian on 2 May 2014

FY14F PE (x): 10.7
FY15F PE (x): 9.6

Core net profit at S$1,033m was way above our forecast of S$868m. Bottom-line would
have been S$1,231m if we include gains of S$223m from the divestment of the
remaining stake in the Bank of Philippine Islands and S$25m donation to the National
Gallery Singapore. Maintain BUY. Our target price of S$22.60 is based on P/B ratio of
1.54x, which is derived from the Gordon Growth Model (ROE: 11.2%, required return:
7.8% and constant growth: 1.5%).

No comments:

Post a Comment