ANALYSTS SAY: Buy, Sell, Hold (23 June)

PHILLIP SECURITIES

PHILLIP SECURITIES

Singapore REITs Monthly

Privatisation season?

▪ The S-REITs Index fell 1.9% in May 2025, extending the 1.5% decline recorded in the previous month. The top performer for the month was Acrophyte Hospitality Trust (ARAUS SP, non-rated), which surged 45% following the announcement of a strategic review, which might include a potential privatisation.

In contrast, the worst performer was Frasers Logistics & Commercial Trust (FLT SP, non-rated), which declined 11.2%. Among sub-sectors, overseas commercial was the best performer, rising 11.3%, while overseas diversified was the worst, falling 4.8%.

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Thai Beverage PLC

Coping with a challenging environment

▪ Spirits' decline in sales volume is due to weaker economic conditions. White spirits is facing more competition from local producers. However, brown spirits are harder for competitors due to their unique taste and distillation methodology.

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OCBC INVESTMENT RESEARCH

CGS CIMB

Sheng Siong Group (SSG) – HOLD Rating (as of 20 June 2025)

• Last Close: SGD 1.89

• Fair Value: SGD 1.99

🛒 Key Highlights

• Stable supermarket & hypermarket sales in April 2025.

• On track to open at least 8 new stores in FY2025.

• Consumer trade-down behaviour (due to inflation) could benefit SSG’s value-for-money offerings.

💡 Investment Thesis

SSG is viewed as a defensive play during a period of rising inflation and slower economic growth.

• Grocery demand likely to remain resilient as consumers prioritise affordability.

• Singapore Budget 2025 support measures (e.g. CDC vouchers) may help sustain grocery spending.

Thailand Strategy

Government likely to survive

■ We do not expect other parties in the Pheu Thai-led coalition government to follow Bhum Jai Thai’s footsteps in pulling out of the coalition.

■ As such, we expect the government to survive, albeit with a reduced majority in parliament. That said, SET will likely be volatile over the next few months.

■ Our top picks are BDMS, CPN, ERW, GULF, MTC and PR9.

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Construction – Singapore

Laying The Groundwork: Infrastructure Upcycle And Margin Tailwinds

Singapore’s construction sector is entering a new growth phase, underpinned by major infrastructure projects such as Changi T5 (S$5.75b in awarded contracts), Tuas Mega Port, and the Marina Bay Sands expansion. Falling material and labour costs are easing margin pressures, improving the profitability outlook for contractors. Maintain OVERWEIGHT on the sector.

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Sunny Optical (2382 HK)

Takeaways From 2025 Investor Day

XR and robotic vision were the focal points of discussion during the investor day meeting, as both the company and investors expect enormous opportunities in the long run, although growth may take a few more years to pick up.

The vehicle business, on the other hand, may start driving immediate growth thanks to the ongoing ADAS proliferation trend. Smartphones shipment remains sluggish, but growth is intact on the back of specs upgrades. Maintain BUY and keep target price at HK$100.00.

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