|
UOB KAYHIAN |
UOB KAYHIAN |
|
Small-Mid Cap Small Mid Cap Stocks Are The Biggest Winners Of MAS’ S$1.1b Distribution
On 21 Jul 25, the MAS announced that it has appointed the first three asset managers under the EQDP and will place S$1.1b with them. The funds were selected because they have committed significant allocation to small mid cap stocks. As a result, small mid cap stocks appear to be the biggest winners of this programme. Our top picks include Food Empire, UMS, Frencken, Valuetronics, Oiltek, Propnex, Marco Polo Marine, Lum Chang Creations, CSE and Sheng Siong.
|
Banking – Singapore Higher Reciprocal Tariffs Could Further Delay Rate Cuts
Higher reciprocal tariffs, ranging from 25% for Japan to 50% for Brazil, would kick in starting 1 August, which could feed into higher inflation in the near term. A subservient next Fed chair sympathetic to Trump’s preference for low interest rates could lead to structurally higher inflation over the long term. Banks could weather volatility from the trade conflict as higher inflation could lead to delays in rate cuts. Maintain OVERWEIGHT. BUY OCBC (Target: S$19.25). HOLD DBS (Target: S$47.00).
|
|
UOB KAYHIAN |
UOB KAYHIAN |
|
SIA Engineering (SIE SP) 1QFY26: Earnings Beat; Fairly Valued After Recent Share Price Surge
SIAEC’s 1QFY26 net profit of S$42.9m (+29.2% yoy, +31.5% qoq) came in ahead of our projection, forming 28% of our full-year forecast. The beat was mainly driven by stronger-than-expected JV/associate contributions, but operating profit, at merely 18% of our full-year forecast, missed our projection, showing no obvious operating margin improvement after the contract renewal with SIA. Downgrade to HOLD following its recent share price surge. Target price: S$3.41.
|
Pavilion REIT (PREIT MK) 2Q25: Results In Line; Pavilion KL Sees Higher Tourist Numbers During Summer Holidays
PREIT reported in-line results. Management maintains its rental reversion guidance of 3-5% yoy for 2025. Looking ahead, Pavilion KL is poised to capitalise on the surge in tourist arrivals and synergies from the two hotel acquisitions, while Pavilion Bukit Jalil should continue to see higher footfall, supported by more exhibitions held throughout the year. PREIT should also benefit from a falling interest rate environment with 88% of borrowings under floating rates. Maintain BUY. Target price: RM1.88.
|
|
|
