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CGS INTERNATIONAL |
UOB KAYHIAN |
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REIT Hospitality REIT - Assessing expectations
■ Hospitality S-REITs will likely report positive 1QFY26F updates, as STB reported an 11% yoy rebound in RevPAR for Singapore hotels in Feb 2026. ■ We remain cautiously optimistic on Singapore’s visitor arrivals in 2026F and maintain our RevPAR growth and margin assumptions. ■ Our top pick within the hospitality sector is FEHT, CLAS, CDREIT (in this order of preference). Guidance will be key to sub-sector re-rating.
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Keppel DC REIT (KDCREIT SP) Anchored By Stability And Resiliency In Singapore
Highlights • Near term, KDCREIT focuses on acquisitions from third party vendors as potential acquisitions from its sponsor pipeline, such as SGP9 in Singapore and a data centre in Western Tokyo, would only be stabilised in 2028/29. • FDCs are an interesting new asset class but do not fall within the ambit of permissible investments for S-REITs. • Maintain BUY on resiliency of the data centre market in Singapore (62.5% of AUM) and support from sponsor Keppel. Target price: S$2.82.
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UOB KAYHIAN |
MAYBANK SECURITIES |
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PPB Group (PEP MK) Negative Surprises Likely Out Of The Way
Highlights • We remain positive on PPB’s 2026 earnings outlook, driven by both its core businesses as well as Wilmar’s associate earnings. • Agribusiness’ profitability is still expected to remain supported by a relatively stable cost base, whereas the film segment is likely to leverage on another robust line-up of movie releases this year. • Maintain BUY with an unchanged SOTP-derived target price of RM14.10.
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MoneyMax Financial Services (MMFS SP) Defensive growth backed by firm gold prices
Beneficiary of firm and higher gold prices MMFS’s earnings profile is supported by sustained elevated gold prices, which have risen by ~205% since 2022 and remain supported by safe-haven demand and sustained central bank buying. Higher gold prices boost collateral values, enabling larger loan quantum and improving recovery rates, thereby directly supporting pawnbroking income. Elevated prices have also spurred more active buying, selling, and trading of gold, as individuals monetise holdings during periods of price strength. This has translated into robust earnings momentum, with revenue rising at an estimated ~29% CAGR (2022–2025).
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