The Zhitong Finance App learned that DBS released a research report stating that it gave ESR (01821) a “buy” rating, and the target price was lowered from HK$19.63 to HK$17.02. The company has set a target for the growth of the asset management scale (after the sale of ARA private funds) that will generate expenses this year in a high number of units. It is expected that as the trend of US interest rates gradually becomes clear, the interest of capital partners will become more clear in the second half of this year.

The bank said the company's fiscal year 2023 results were in line with expectations. There are recent unconfirmed reports that major shareholders are weighing equity options, including privatization and potential major asset sales, reflecting the intrinsic value of ESR and the viability of increasing shareholder value at current prices. DBS cut ESR earnings estimates by 9% to 10% for the 2024-25 fiscal year due to lower forecasts for the investment sector and higher financing costs.