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UOB KAYHIAN |
MAYBANK KIM ENG |
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Strategy Yield-ing To Temptation: Yields Over Bonds
Highlights • Attractive yield differentials. With Singapore government bond yields trending lower, the yield differential between fixed income and equities has narrowed in 2025, thus reinforcing the relative appeal of companies offering high, sustainable dividend payouts. Equity yields in the 4-6% range now offer a compelling pickup versus the 10-year Singapore Government Bond yield (1.8579% as at 4 Sep 25), while also providing potential for capital gains. In our view, this widening yield gap should support rotation flows into quality income equities as bond proxies.
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Solarvest Holdings (SOLAR MK) Secures 470MW LSS5+ with Malakoff
SOP-TP lifted to MYR2.90; maintain Buy; Top Pick Solarvest has secured the bid under the Energy Commission’s LSS PETRA 5+ exercise, with its consortium (20% Solarvest, 80% Malakoff) receiving a Letter of Notification to develop a 470 MWac solar plant in Perak. The project will be undertaken via a new SPV, which will sign a 21-year SPPA with Tenaga Nasional (TNB). We raise our SOP-TP to MYR2.90 (from MYR2.64), incorporating Solarvest’s 20% stake in the 470MW LSS5+ project. Maintain BUY. Solarvest is our top pick for the sector.
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SAC CAPITAL |
UOB KAYHIAN |
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Livingstone Health Holdings Limited
Company Overview
Key Highlights
Business Developments
Investment Thesis
Risks
Valuation (FY2025)
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Oil & Gas – Malaysia Petronas’ Ongoing Recalibration Against Polycrisis
Highlights • Petronas’ resiliency is being tested against a new era of polycrisis. Extending the performance trend in 2024, Petronas’ 1H25 profit/EBITDA declined 19%/15% yoy due to lower realised prices and volumes. Petronas’ financial strength should support its RM32b dividend obligation. However, as described by group CEO Tengku Taufik (TT), long-term cash flow generation is being challenged by an unprecedented polycrisis, including the costs of energy transition alongside an uncertain “deflation” of oil prices, geopolitical and protectionism risks, OPEC+’s unwinding production cuts, and structural shifts in local O&G landscape.
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| LIM & TAN | |
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Marco Polo Marine / MPM ($0.069, up 0.1 cents) announced the selection of Salt Ship Design AS (“Salt”), a renowned Norwegian ship designer, to design the Group’s, next-generation Commissioning Service Operation Vessel – the CSOV Plus. The contract was signed between the Group’s Taiwan-based subsidiary PKR Offshore Co., Ltd, Salt Ship Design and Marco Polo Shipyard Pte Ltd. MPM’s market cap stands at S$259mln and currently trades at 10.4x FY25F PE and 1.1x PB. The upcoming construction of the CSOV Plus will build on the prospects of its current CSOV, providing increased opportunities in both the offshore wind and oil & gas sectors. We also view the planned listing of its Taiwan subsidiary positively as it affirms MPM’s success in the Taiwan wind market. Maintain BUY on Marco Polo Marine with a target price of S$0.082.
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