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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Telecommunications Ltd Mobile price repair is largely underway
▪ 2025 Investor Day: Singtel mentioned that the asset monetisation target is much larger than S$9bn, the scaling up of its data centre as Singapore capacity doubles, finalised its GPU-as-a-service business model, and the need to adopt AI at scale to secure the competitive edge in cost and service levels
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REITs – Singapore S-REITs Monthly Update (Aug 25)
US monetary policy is at an inflexion point, and is likely to switch towards easing to support the job market, which has slowed considerably recently. S-REITs benefit from the recovery in liquidity triggered by the upcoming rate cuts. Maintain OVERWEIGHT. 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).
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CGS CIMB |
LIM & TAN |
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Strategy Note Ample fuel in the Tank The Singapore market is expected to continue riding on the liquidity wave and positive newsflow on the EMDP and sustained market earnings growth, as we head into the rest of 2025F. In addition, a declining interest rate environment could continue to stoke investors’ risk appetite. The Singapore market is trading at forward P/E of 14.8x, still below the long-term mean of 16.7x and offers a projected dividend yield of 4.2%.
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APAC Realty’s (S$0.735, up 0.5 cts) 1HFY25 results came in above our expectations with revenue and profits coming in at 55%/80% of our full year forecast. Revenue rose 29% yoy to S$341.5mln from a strong surge in new homes sales, supported by steady resale and rental volumes. Gross profit rose 46% to S$35.8mln with a 1.3 pp uptick in margins as the Group benefitted from higher-margin new homes sales. Net profit for 1HFY25 came in at S$11.3mln, an increase of 176% yoy. Management has tripled interim dividends to 2.7 S cts (1HFY24: 0.9 S cts), representing a 78% DPR and 3.7% interim yield. At 73.5 cents, APAC Realty is capitalized at $264mln and trades at 14.5x forward P/E, 1.6x P/B with a 6.0% dividend yield. New homes sales this year have so far exceeded the total number sold in 2024, and we expect APAC Realty to deliver resilient results this year. A high and steady level of Government Land Sales (GLS) sites from 2025 to 2027 will also bode well for residential supply in the coming years. Maintain “Accumulate” with a higher target price of S$0.82 (previous TP: S$0.66), based on 15.5x blended FY25F/26F P/E (10% discount to peers). |
| LIM & TAN | DBS GROUP RESEARCH |
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ASL Marine ($0.083, up 0.02 cents) reported 2HFY25 results and reported that group revenue of $177.9mln was $7.3mln (+4.3%yoy) higher as compared to 2HFY24. These results were mainly driven by higher contribution from shipbuilding, partially offset by lower revenue from shipchartering and shiprepair, conversion and engineering services. ASL Marine’s market cap stands at S$87.3mln and currently trades at FY25 3.5x PE (Based on adjusted profit) and 0.7x PB, with a dividend yield of 2.4%. We note that ASL Marine not taken haircuts on their loans despite the O&G rout and that they have been consistently paying off their debts with their strong cash flow (Adj. EBITDA at $83.4mln) which is currently slightly lesser than market cap. They have also issued dividends (not seen since 2015) and we think this bodes well for ASL Marine moving forward. We are now interested in ASL Marine and we suggest investors to take a closer look.
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Guocoland
Strong Singapore core cushions China drag Investment Thesis: Established property developer with growing investment portfolio. GuocoLand is a premier regional property company, designing its high-end residential projects for future-ready living and crafting them to meet homebuyers’ rising expectations for comfort and convenience. This approach allows the company to thrive in market segments where its superior branding is highly valued. The group is also strategically shifting its focus towards its property investment business to establish a more stable and recurring income base. In particular, it aims to build more unique and transformative mixeduse developments, akin to its successful projects Guoco Tower and Guoco Midtown.
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