|
UOB KAYHIAN |
LIM & TAN |
|
REITs – Singapore 2Q25 Round-Up: Poised For An Upturn
Two S-REITs out of 21 under our coverage beat expectations, namely CICT (NPI margin expanded due to efficiency and scale from focus on Singapore) and PREIT (11 nursing homes in France contributed fully and accounted for 7.8% of group NPI). Maintain OVERWEIGHT. US monetary policy is switching towards easing. BUY blue chip S-REITs with specific catalysts: CLAR (Target: S$4.02), CLAS (Target: S$1.56), KDCREIT (Target: S$2.69), KREIT (Target: S$1.18) and LREIT (Target: S$0.79).
|
Marco Polo Marine ($0.069, up 0.2 cents) / MPM announced a strategic initiative to strengthen its position in the burgeoning offshore wind energy market. The Group’s 49%-owned indirect subsidiary, PKR Offshore Co. Ltd. (“PKRO”), a Taiwan-based specialist in offshore wind farm support, is targeting a listing in Taiwan and plans to submit its listing application by the third quarter of 2026. MPM’s market cap stands at S$248.2mln and currently trades at 10.4x FY25F PE and 1.1x PB. We view this listing positively as it affirms MPM’s success in the Taiwan wind market. We await further details of the listing. Maintain BUY on Marco Polo Marine with a target price of S$0.082 (Bloomberg consensus 1 year target price is bandied around 8 cents/share). We expect more constructive/positive news on MPM in the near to medium term. |
|
LIM & TAN |
UOB KAYHIAN |
|
OUE REIT (S$0.335, up 1 cts) is pleased to announce that its joint venture, OUE Allianz Bayfront LLP, has successfully obtained its first S$600 million green loan facility, S$225 million revolving credit facilities, and a S$5 million bank guarantee facility from a club of banks for the early refinancing of existing facilities secured by OUE Bayfront due in 2026 and for general corporate purposes. OUE REIT’s market cap stands at S$1.8bln, and currently trades at 0.6x P/B with an annualized dividend yield of 5.9%. Following the divestment of Lippo Plaza Shanghai, OUE REIT is now a pure-play Singapore REIT comprising quality retail, hospitality and office assets. In view of its decent yield, low P/B and beneficiary of a lower interest-rate environment, we have an “Accumulate on Weakness” recommendation on OUE REIT.
|
Kingboard Laminates (1888 HK) 1H25: Riding On PCB Uptrend; Stepping Up High-end Material Development
KBL’s 1H25 net profit increased 28% yoy to HK$933m, representing 33% of our fullyear estimate. Gross margin dropped 1.3ppt as laminates ASP hikes lagged higher copper costs in 1H25. Management is bullish on the development of its low-Dk fibreglass yarn and is accelerating production in 2H25. We are positive on the PCB uptrend and have factored in its ASP inflation. Downgrade to HOLD with a higher target price of HK$12.43 based on 16.2x 2025F PE, pegged to 1SD above mean.
|
| DBS GROUP RESEARCH | OCBC INVESTMENT RESEARCH |
|
Breaking new highs
Investment Thesis: The largest integrated commercial S-REIT, well positioned to ride the upcycle in Singapore’s office and retail markets. With Singapore assets contributing c.95% of revenue following the addition of Ion Orchard Mall and consolidation of remaining stakes in CapitaSpring Commercial, we see a c.3% DPU growth CAGR in the coming years. CapitaLand Integrated Commercial Trust (CICT) is able to deliver both stability and growth, supported by the resilient Singapore economy.
|
Hong Leong Asia Ltd (HLA SP) – Powering Ahead: Constructing Cities of the FutureBusiness Segments
Financials & Valuation
ESG Highlights
Investment Thesis
|
