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CGS CIMB |
CGS CIMB |
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Food Empire Holdings Ltd A bonus issue could sweeten its 25th anniversary
■ We think FEH’s 1H25F revenue/core net profit grew 16%/27% yoy to US$261m/US$30m. Results likely in the week of 12 Aug 2025F. ■ In our view, its 25th anniversary and Singapore’s 60th birthday provide grounds for the board to consider a bonus issue to reward shareholders. ■ Reiterate Add and TP S$2.28. We view any potential share price weakness arising from the revaluation loss on its REN as an opportunity to Add.
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LHN Ltd Value up in the making
■ LHN specialises in space optimisation and facilities management in SG. Key brands are Coliwoo (co-living) and Work+Store (self-storage). ■ We expect Coliwoo’s PBT to grow 20% in FY26F and 29% in FY27F as more projects are completed. A spin-off of Coliwoo would unlock more value. ■ The property development and industrial segments are likely to be the new growth engines for LHN post the Coliwoo spin-off. ■ Initiate coverage with an Add call and a TP of S$1.00, based on 10x CY26F P/E. Current valuations remain undemanding at 6.1x CY26F P/E.
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MAYBANK KIM ENG |
UOB KAYHIAN |
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Petronas Chemicals (PCHEM MK) O&D spreads likely stay subdued for some time
Maintain SELL with an unchanged TP of MYR2.59 We hosted PCHEM’s CFO and Investor Relations, Mohd Azli Ishak, & team in our Maybank-IB’s annual Invest ASEAN event across 2 full days of meetings with global & local investors on 2-3 July 2025. We reiterate our bearish view on the O&D subsector due to the ongoing regional oversupply glut (mainly from China). We made no changes made to our FY25-27E earnings forecasts and SELL rating with an unchanged TP of MYR2.59, based on 15x PER (5Y mean PER) on FY26E EPS.
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Keppel DC REIT (KDCREIT SP) Tight Vacancy Supports Positive Rental Reversion In Singapore
KDCREIT plans to develop long-term relationships with hyperscale tenants, which accounted for 63% of 3M25 rental income. It has repositioned towards hyperscale data centres by acquiring three hyperscale data centres in Singapore and Japan. Positive rental reversion for colocation leases in Singapore is expected to surge to 30-40% again in 2Q25. Management is mulling expanding SGP8 by fitting out and converting 1.5 floors of unutilised space into data halls. Maintain BUY with a target price of S$2.69.
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| UOB KAYHIAN | LIM & TAN |
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NTT DC REIT (NTTDCR SP) Benefitting From Tight Vacancies In N Virginia, N California And Singapore
NTTDCR’s initial portfolio comprises six Tier 3 data centres in Northern California (3), Northern Virginia (1), Vienna (1) and Singapore (1). It has a balanced mix of hyperscale and colocation tenants, which contributed 51% and 49% of monthly base rent. There is a potential upside of 39.9% for hyperscale leases in Northern Virginia, 75.8% for hyperscale leases in Northern California and 48.4% for wholesale leases in Singapore. SUBSCRIBE for NTTDCR’s IPO due to an attractive FY27 yield of 7.8%.
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The Board of Directors of Stoneweg EREIT Management Pte. Ltd. and Stoneweg EBT Management Pte. Ltd., (the “Managers”), wishes to announce that Jones Lang LaSalle Incorporated (“JLL”) and Savills Advisory Services Limited (“Savills”) have carried out respective independent valuations (“Valuations”) for 104 properties in Stoneweg Europe Stapled Trust / SERT’s (S$2.28, down 2 cts) portfolio as at 30 June 2025, resulting in a total portfolio valuation of €2,250.8 million. SERT’s market cap stands at S$1.3bln and currently trades at 0.7x PB. Dividend yield stands at 8.9% and consensus target price stands at $2.75, representing 20.6% upside from current share price. Given attractive valuations and high upside to consensus, we recommend an “Accumulate” on Stoneweg Europe Stapled Trust. |
