ANALYSTS SAY: Buy, Sell, Hold (30 Dec)

LIM & TAN

LIM & TAN

CapitaLand Ascendas REIT ($2.82, unchanged) announced the implementation of a sharing arrangement following the completion of its acquisition of 5 Science Park Drive (“5SPD”), a business space property within the Geneo life sciences and innovation hub at Singapore Science Park 1. Geneo, also referred to as the Cluster 1 Development, comprises three interconnected properties—1 Science Park Drive, 5 Science Park Drive and 7 Science Park Drive—designed as a mixed-use, integrated cluster with shared accessways, linkways and infrastructure to support complementary business, life sciences, retail and hospitality uses.

CLAR’s market cap stands at S$13bln and currently trades at 18.7x forward PE and 1.3x PB, with a dividend yield of 5.2%. Consensus target price stands at $3.27, representing 16.0% upside potenƟ al upside. Although CLAR possesses a strong balance sheet and a healthy liquidity position, we maintain an “Accumulate on Weakness” rating given its and relatively lower dividend yield slightly pricy valuations as compared 3000 to the other S REITS. 

The sales of Infinity Development Holdings Ltd ($0.40, up 0.01) for the years ended 30 September 2025 and 2024 were approximately HK$835,153,000 and approximately HK$736,338,000 respectively, representing an increase of approximately 13.4%. The increase in the revenue was mainly due to the increase in the revenue contribution in all geographical regions for the year ended 30 September 2025 as supported by the continuous increase in consumer spending in footwear in the Asia-Pacific region. The cost of sales of the Group for the years ended 30 September 2025 and 2024 were approximately HK$518,319,000 and approximately HK$458,898,000 respecƟ vely, representing an increase of approximately 12.9%. The increase in the cost of sales was in line with the increase in revenue and overall increase in its direct costs components of the cost of sales.

The bank and cash balances of the Group amounted to approximately HK$296,029,000 as at year ended 30 Sept 2025 versus zero bank borrowings. The net cash position represents 39% of its current market cap of HK$757,000,000. While its historical PE based on Year ended Sept 2025 earnings is 6.2x, assuming a conservative 10%(half the rate of last year and in line with Asia’s footwear manufacturing outsourcing growth expected) growth in earnings for year ending Sept’2026, Forward PE ratio would drop to 5.6x. Based on last year’s dividend payout of HK$0.20 (50% div payout raƟ o), div yield is an attractive 8.7%. Based on the low PE ratio and attractive yield, we would put Infinity Development on our watchlist for 2026.