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CGS CIMB |
CGS CIMB |
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Singapore Strategy Liquidity tailwinds from EMDP
■ MAS appoints 3 asset managers, injects S$1.1bn of liquidity into Singapore equities ■ Another S$50m set aside to strengthen equity research ecosystem and listing support ■ Our current stock picks, including those with earnings growth and EMDP beneficiaries – KEP, SATS, SGX, UOL, YZJSGD, CSE, FEH, HLA, LHN, MPM, QNM
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Centurion Corporation Ltd More Epiisods to come
■ CENT launches Epiisod, a new brand targeting demand for upscale, experience-driven student accommodation with Epiisod Macquarie Park. ■ We estimate spin-off value for Centurion Student Accommodation REIT (CAREIT) to be S$1.4bn; CENT intends to hold 35-40% of CAREIT. ■ Reiterate Add with a higher TP of S$2.05 as we move from blended valuation to pure RNAV to better reflect CENT’s recurring earnings profile.
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UOB KAYHIAN |
UOB KAYHIAN |
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Oiltek International (OTEK SP) Strategic Secondary Listing To Broaden Reach
Oiltek has proposed a secondary listing on Bursa Malaysia to boost regional presence, improve investor access, increase liquidity and tap an additional platform for future fundraising. Oiltek is also exploring a potential role in an SAF pilot plant programme in Sarawak, alongside SEDC Energy and Sulzer. Orderbook remained robust at RM402m as of Apr 25, supporting strong revenue visibility into 2025. Maintain BUY with a 7.5% higher target price of S$0.86 (S$0.80 previously).
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Renewable Energy – Malaysia Government Approves RM1.87b In FIT Renewable Energy Projects
PETRA recently approved 48 renewable energy generation projects (180.8MW) under the FIT programme as part of its aggressive ramp-up to achieve its net zero target. These biogas, biomass and small hydropower plant projects will benefit RE players. The expected EPCC contract from this FIT 2.0 programme is valued at approximately RM1.87b, benefitting the likes of TNB Genco. Maintain OVERWEIGHT. Top picks: Tenaga, Malakoff and Pekat Group.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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UMS Integration (UMSH SP) Bursa listing a positive catalyst
Maintain BUY with a higher TP of SGD1.59 With its secondary listing on Malaysia’s Bursa on 1 Aug, we expect UMS valuations to be lifted to closer to that of its Malaysian peers as they are trading at an average of around 25-35x P/E. We also expect upcoming 1H25E results (due Aug 2025) to improve as revenue from its existing customer should grow slightly YoY. As a result, we maintain our BUY rating with a higher TP of SGD1.59. Our TP is pegged to a higher 20x blended FY25/26E P/E from 15x P/E previously due to its listing in Malaysia.
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Food Empire Holdings (FEH SP) Truly Asia
Maintain BUY with a higher TP of SGD2.62 FEH struck a preliminary pact (MOU) with Capital A Berhad subsidiary Santan Food Services to sell a Vietnamese iced coffee product on AirAisa flights and through retail channels and co-develop a new range of products. Going forward, we expect margins to improve as price hike adjustments kick in. We also expect its upcoming 1H25E results (due Aug 2025) to show strong core earnings. We lift our TP to SGD2.62 from SGD2.00, based on a higher 17x from 13x FY25E P/E and a solid 5%+ dividend yield. Maintain BUY.
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