-
- FY25 PATMI of S$145mn (-70% YoY) was below our expectations, forming only 22% of our FY25e forecast due to significant S$439mn revaluation losses, mainly from China. Excluding these losses, FY25 operating PATMI of S$539mn was in line at 98% of our estimates. Operating PATMI rose 6% YoY on higher contributions from listed funds, lower finance costs, and reduced operating expenses.
- Funds Under Management (FUM) grew 7% YoY to S$125bn. CLI believes it can grow FUM to c.S$160bn organically but acknowledges that acquisitions will be necessary to reach its S$200bn target by 2028. Gross divestments fell from S$5.5bn in FY24 to S$3.1bn in FY25, due to a larger proportion of remaining assets being in China. About S$1bn was divested from China at a 10–20% discount to book value, leaving c.S$3bn of Chinese assets still on the books.
- Maintain BUY with a higher SOTP-TP of S$3.69 (prev. S$3.65) as we roll forward our forecasts. We lower FY26e PATMI by 12% on weaker operating performance in China and narrower margins under the FRB. Balance sheet divestments are expected to accelerate in FY26e, with the potential listing of a second C-REIT. We favour CLI for its robust, growing recurring fee income and asset-light strategy, which supports resilience amid macro uncertainty. The board has proposed a final dividend of 12 cents, implying a yield of 3.8%.
Continue Reading
