ANALYSTS SAY: Buy, Sell, Hold (29 Dec)

LIM & TAN

LIM & TAN

Keppel Ltd. ($10.25, down 10 cents) and Keppel DC REIT (S$2.61, unchanged) are pleased to announce that the relevant authoriƟ es have granted conditional approval for a 10-year land tenure lease extension to 15 July 20501 for the Keppel Data Centre Campus at Genting Lane in Singapore.

Keppel DC REIT’s market cap stands at S$5.4bn and currently trades at 13.6x PE and 1.4x PB, with a dividend yield of 4.6%. Consensus target price stands at $2.61, representing 18.1% upside from current share price. Keppel DC’s REIT has a lower yield comparatively to the other REITs and trades at slightly higher valuations relatively. As such, despite the robust outlook for data centres, we continue to maintain an Accumulate on Weakness rating on KDC REIT

According to Business Times, in view of China’s prolonged economic slowdown and rising geopolitical tensions, construction and property group KSH Holdings ($0.36, down 0.5 ct) is hedging its bets and doubling down on the Singapore market for growth. Executive chairman and managing director Choo Chee Onn is banking on the Republic’s construction upcycle to drive the group’s topline, as he looks to dial back its overseas real estate development and investment activities over the next few years. Currently, KSH is developing two residential properties in Gaobeidian, China with joint venture partners. Its porƞ olio includes stakes in a retail office asset in Tianjin, on top of several hospitality assets across the United Kingdom and Japan.

Shares of KSH closed at S$0.36 last Friday, puƫ ng the company’s market capitalisation at S$205.1 million. With better margined construction project recognition in 2H ending March’26, management expects a much stronger 2H performance with full year ending March’26 profi t expected to be around $17mln, while full year ending March’27 profi t is expected to be around $21mln.

KSH’s forward and prospective PE is 12x and 10x respecƟ vely, undemanding relative to its strong turnaround. Forward yields range between 4%-5% while price to book is 0.7x. Net cash of 54mln also accounts for 27% of it’s market cap. We maintain an “Accumulate” rating on KSH given its undemanding valuations and good dividend track record and yields.

KGI

LIM & TAN

Centurion Corp Ltd

Capital recycling via CAREIT and continued earnings resilience

Valuation & Action: We maintain OUTPERFORM, raising our target price to S$1.80 from S$1.38, reflecting the completed divestment of stabilised assets to CAREIT and improved earnings and cash flow visibility post-listing. The upward revision is supported by the quality and high occupancy of the assets transferred to CAREIT, as well as Centurion’s retained exposure through recurring sponsor income. Our valuation incorporates potential upside from CAREIT’s enlarged portfolio and future asset enhancement initiatives.

Nam Cheong Limited / NCL ($0.845, down 0.01), one of Southeast Asia’s leading Off shore Support Vessel (“OSV”) providers based in Sarawak, Malaysia, is pleased to announce that the Group has entered into a sales agreement with an established Vietnam-based off shore and marine group to sell one 4,000 deadweight ton (“DWT”) platform supply vessel (“PSV”) for US$20.5 million.

At NCL’s last traded price of 84.5 cents, its market cap is $336mln and trades at 5-6x forward PE against growth of 18%. Based on Bloomberg consensus 1 year target price of $1.25, potenti al upside is about 48%. While we do not currently have a rating on NCL, we would put the company on our watch-list given its low valuation and decent growth prospects.