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UOB KAYHIAN |
UOB KAYHIAN |
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Oiltek International (OTEK SP) Expect More Positive Developments; Raise Target Price To S$0.80
Our recent meeting with management provided several key insights: a) more order wins are expected in the near term as more customers are finalising their orders after more clarity on the US tariffs; b) its expansion to a more recurring revenue model is progressing; and c) Oiltek continues to explore more options to enhance shareholder value, including a dual listing. Maintain BUY with a 65% higher target price of S$0.80 as we raise our forecasts and roll over our valuation base year.
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Gaming – Malaysia Selectively Positive; Yield Compression Narrative Remains Intact
Despite the lacklustre broad market sentiment due to volatile US trade policies, the gaming sector has charted a commendable rebound and outperformed the KLCI index thus far in 2H25. Several key drivers include strong tourism data, dividend yield compression, and a better consumption trend expected due to the recent OPR cut. Maintain MARKET WEIGHT on the sector, but we are selectively positive on stocks with near-term event catalysts. Top picks: GENM, Magnum and RGB.
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CGS CIMB |
OCBC INVESTMENT RESEARCH |
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Banks Reeling in expectations for 2Q25F
■ We remain neutral on SG banks going into 2Q25F results as we expect PATMI to be weaker by 3.7-5.3% qoq across the 3 banks (Fig 2). ■ We estimate NII decline of 1.1-1.9% across the banks due to lower interest rates in 2QCY25 and muted systems loan growth in Singapore as of May. ■ Non-II had likely softened in 2Q25F following Liberation Day, even though stable macroeconomic conditions should support benign credit costs. ■ We view SG banks as a yield play, with DBS as our top pick given its DPS growth guided by management supporting FY25F-27F yield of 6.6-7.6%.
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Sembcorp Industries
Investment thesis |
| DBS GROUP RESEARCH | LIM & TAN |
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Elite UK REIT BUY Last Traded Price (14 Jul 2025): GBP0.320 (STI : 4,047.86) Price Target 12-mth: GBP0.36 (13% upside)
Visiting the present and future Investment Thesis: Only UK-focused REIT listed on SGX, offering a counter-cyclical portfolio. Elite UK REIT is the only UK-focused REIT listed in Singapore, with a unique position in the REIT space, functioning as social infrastructure. With the majority of its rental income derived from leases with the AA-rated UK Government, its stable stream of cash flow is a key positive for the REIT.
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BRC Asia Limited / BRC ($3.33, unchanged) the leading steel reinforcement solutions provider in Singapore, is pleased to announce that the Group has been awarded contracts worth approximately S$570 million by the joint venture (“JV”) between the Singapore branch of China Communications Construction Company Limited (“CCCC”) and Obayashi Singapore (“Obasyashi”), to supply steel reinforcement for the substructure of Singapore Changi Airport’s highly anticipated Terminal 5 (“T5”), which is expected to open in the mid-2030s. At its last traded price of $3.33, BRC is capitalized at $914mln and trades at a forward PE of 10x and dividend yield of 4.2% (core dividend of 14 cents per share, excluding special dividends of 6 cents per share). While we acknowledge that prospects continue to remain bright for BRC Asia, its year-to-date gains of 36% against the STI’s 9% rise and its price to book of 2x versus the STI’s 1.3x as well as Bloomberg analysts’ consensus 1 year target price of only $3.40 implies limited capital upside potential. Finally, BRC’s core dividend yield of 4.2% also pales in comparison to the market’s 4.9% yield. In conclusion, balancing all factors, we maintain our “HOLD” recommendation on BRC. |
