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UOB KAYHIAN |
UOB KAYHIAN |
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Plantation Softer Stance On Indonesia’s Export Policy
Highlights • DSI's role as a pricing oversight body, rather than a sole exporter, alleviates concerns over export bottlenecks and palm oil supply disruptions. • We expect the regulatory discount on Indonesian plantation stocks to narrow as the latest development points to limited earnings impact on planters. • Maintain OVERWEIGHT. Upgrade First Resources to BUY (from HOLD) with an unchanged target price of S$3.65, and reiterate our positive view on Bumitama Agri with an unchanged target price of S$2.01
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UI Boustead REIT (UIBREIT SP) Aerospace Tenants Deepen Presence In Singapore
Highlights • Bombardier plans to nearly double its service footprint in Singapore with the addition of a new facility at SAP, which includes aircraft hangars and a component repair & overhaul workshop. Safran has also established a JV to provide engine MRO services for CFM’s LEAP-1A and LEAP-1B engines. • UIBREIT benefits from growth of its aerospace tenants in Singapore. The high-value automotive, aerospace & avionics sector is projected to account for 22.1% of rental income post-completion of Seletar Aerospace Road 1. • Maintain BUY. UIBREIT provides an attractive DPU yield of 9.0% for FY27 and 8.8% for FY28 (CLAR: 5.9%, AAREIT: 6.3%). Our target price of S$1.17 is based on DDM (cost of equity: 7.25%, terminal growth: 1.2%).
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Singapore Exchange Ltd (SGX SP) A higher base
Positioned for structurally higher growth. BUY SGX’s May equity market turnover shows an accelerating trend towards a higher baseline velocity. This should drive structurally higher SDAV in the medium term. Concurrently, derivatives are also posting strong growth. With geopolitical and macro-economic uncertainty unlikely to abate anytime soon, SGX positioning as a multi-asset risk management platform is a critical differentiator. Risks to earnings upgrades are on the upside going forward, in our view. We raise TP to SGD25.25. Maintain BUY
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Genting Plantations (GENP MK) Kicking off its next engine of (tech) growth at JS-SEZ Longer term positive for unlocking value at JS-SEZ
GENP has unveiled its masterplan for Johor Tech Smart City (JTSC), a 2,300-acre development in JS-SEZ focused on future technologies, advanced infrastructure and food security. Except for MYR80b GDV estimate, no other financial details or timeline were shared during the JTSC project launch last Friday. Nonetheless, we are longer term positive on this new development initiative if executed well. Maintain BUY and TP of MYR6.93 on 18x FY26E P/E, its -0.5SD of 6Y mean.
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| DBS RESEARCH | |
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4 sectors poised for recovery/rebound as Strait of Hormuz set to reopen
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