• Singapore interest rates are showing signs of stabilisation with May’s 3M-SORA up 2bps MoM to 1.07%, the first MoM increase in 2 years, and fell by 124bps YoY, the smallest YoY decline in 13 months. Singapore YoY loan growth the highest since post-COVID (Apr26: +7.9%). Banks have maintained low-to-mid-single-digit guidance. CASA rose 14% YoY, and CASA ratio to deposits is stable at 20.5% (Mar26: 20.6%), the second highest in 41 months and a tailwind for banks, lowering funding costs and cushioning NIM compression.
• Maintain NEUTRAL. MAS’s 14 April tightening of the S$NEER appreciation path remains in force, alongside the Fed’s higher-for-longer stance, with markets pricing in zero US rate cuts for 2026. The rate backdrop is NIM-supportive, with stabilisation expected to extend through 2H26 as deposit repricing flows through. Oil retreated about 20% from its 2026 peak in late May amid optimism over a US-Iran ceasefire and easing pressure from imported inflation, though the conflict remains unresolved and markets remain volatile. That volatility continues to benefit capital markets income and wealth management fees, a meaningful offset to NII headwinds. Banks’ dividend yields remain attractive at 4.5%, with ongoing buybacks improving ROE. We prefer DBS (fixed dividend policy with a 1Q26 guidance upgrade) and OCBC (wealth management growth and excess capital). We raise our target prices for all three banks, DBS: S$67.50 (prev. S$61.00), OCBC: S$24.00 (prev. S$22.00), UOB: S$39.00 (prev. S$37.00), as we lower our risk-free rate and equity-risk premium assumptions on a more stable interest-rate environment.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Company Profile Geely is one of the leading enterprises in China's self-brand passenger vehicles manufacturers. The Company's products include six major brands: Geely, Lynk, Zeekr, covering the A0 to C-class passenger vehicles market. Investment Summary 26Q1 Sales Remained Largely Flat, with Premiumisation Strategy Showing Bright Spots In the first quarter of 2026, Geely Auto delivered a cumulative 709.4 thousand vehicles, up 0.8% yoy, setting a new record high for the same period in history and regaining the top position among...
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