• 1Q21 earnings above, at 34.5% of our FY21e forecast. The strong beat came from net fee income and a S$190mn reversal in GPs.
• NIM fell 37bps to 1.49%, at the upper-end of guidance. Loan growth of 7% YoY cushioned NII. NIM was unchanged from last quarter.
• Fees and commissions surged 15% YoY, rising above pre-COVID levels.
• Credit cost stabilised, resulting in a general allowance write-back of S$190mn and SPs returning to pre-pandemic S$200mn or 21 basis points. Total allowances in FY21e likely to be below S$1bn.
• Maintain ACCUMULATE with higher GGM TP of S$31.40, from S$29.50. We raise FY21e earnings by 5.6% as we lower our allowance estimates and crank up our fee income estimates. We now assume 1.36x FY21e P/BV in our GGM valuation, up from 1.31x.

• Mon, 3 May: Earnings: GREAT EASTERN HOLDINGS – Bef Mkt, SG: Purchasing Managers Index (9:00PM), US: Markit US Manufacturing PMI (9:45PM)
• Wed, 5 May: Earnings: AIMS APAC REIT – Bef Mkt, SG: Retail Sales YoY (1:00PM), US: Markit US Services PMI (9:45PM)
• Thu, 6 May: Earnings: FRASERS LOGISTICS & COMMERCIAL TRUST – Bef Mkt, SINGAPORE POST – Bef Mkt, UNITED OVERSEAS BANK – Bef Mkt, US: Initial Jobless Claims (8:30PM)
• Fri, 7 May: Earnings: OVERSEA-CHINESE BANKING CORP – Bef Mkt, SG: Foreign Reserves (5:00PM), US: Change in Nonfarm Payrolls (8:30PM)

4QFY21 results beat, with FY21 revenue and PATMI at 122%/116% of our forecasts. Volume sales growth of 66.7% YoY in 4QFY21 exceeded our +12.8%. Gross margin of 78.6% and ASP of US$120.70/DMT also beat our forecasts of 74.3% and US$96.00/DMT. 4QFY21 PATMI tripled YoY to US$6mn from higher selling prices and an 18% decline in unit production costs. Maintain BUY with higher TP of S$0.64 from S$0.47 as we roll over our 11x P/E target to FY22e, still in line...
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