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CGS INTERNATIONAL |
PHILLIP SECURITIES |
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Grab Holdings The fintech inflection begins
■ 2Q26F preview: we expect resilient EBITDA of S$158m (+45% yoy), still led by on-demand GMV growth and loan book growth. ■ FS segment is the key rising star from 2HFY26F, in our view, supported by Super Bank consolidation and Stash acquisition (pending approval). ■ Commission rate cap for 2W in Indonesia has been finalised, removing a key overhang. Retain Add as we expect 38% FY27F EBITDA growth.
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Phillip 3Q26 Singapore Strategy Booming Not Bubbling
SINGAPORE | STRATEGY Review: Singapore equities posted their fourth consecutive quarter of gains with the 5.8% rise in 2Q26. It hit record highs on 25th June. The market is up 11.3% in 1H26. The ceasefire in the Middle East lifted transportation stocks (Figure 2). The surge in volatility has also benefited exchanges and banks. Expectations of a bottoming out in interest rates have also rallied the banking stocks(Figure 1). Sluggish oil and gas capital expenditure and falling energy prices have depressed energy-related stocks (Figure 3). REITs have started to recover, led by industrial names (Figure 4).
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| UOB KAYHIAN | OCBC GROUP RESEARCH |
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REITs S-REITs Monthly Update (Jun 26)
Highlights • S-REITs are actively recycling assets, supported by advantageously low domestic interest rates. The sector is defensive and provides an attractive yield spread of 3.8%, which is 0.9SD above the long-term mean. • Maintain OVERWEIGHT. We selectively bargain hunt with BUY recommendations for blue-chips CICT (Target: S$3.06), FLT (Target: S$1.30), NTTDCR (Target: US$1.43) and UIBREIT (Target: S$1.17).
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Parkway Life REIT A June reset
Investment thesis Parkway Life REIT (PLIFE) is one of Asia’s largest listed healthcare REITs. It has a stable portfolio of 74 high quality and yield accretive healthcare assets – comprising strategically located private hospitals in Singapore, as well as nursing homes and care facility properties in Japan and France – managed by 30 lessees, with a total valuation of SGD2.57b as at 31 Mar 2026. While the S-REITs sector is generally considered to be defensive, healthcare is an especially defensive subsector. We like PLIFE’s longterm lease structures as they provide a steady stream of rental income and thus downside protection during market downturns. At the same time, there is also growth potential through rental escalations and upside sharing with tenants in the near term, and asset enhancement initiatives (AEIs) and acquisitions in the medium to long term. A combination of organic rental growth, accretive acquisitions, and prudent capital management has allowed PLIFE to grow its distributions consistently since 2007. We look favourably upon the REIT’s potential to carry along this trajectory, supported by secular megatrends such as a rise in foreign medical tourism in Singapore, and an ageing population in France and Japan. |
| UOB KAYHIAN | UOB KAYHIAN |
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Frasers Centrepoint Trust (FCT SP) Sharpening Focus On Dominant Malls While Deleveraging
Highlights • FCT is divesting its smallest mall, White Sands in Pasir Ris, for S$467m, representing an 8.4% premium to valuation. We estimate exit yield at 4.8%, which is fair given the competition from Pasir Ris Mall. • Aggregate leverage is reduced significantly from 40.0% to 36.5%, providing additional debt headroom to pursue acquisitions and AEIs. • Resiliency of suburban malls is supported by growth in household income and limited supply. Maintain BUY. Target price: S$2.99.
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SATS (SATS SP) 1QFY27 Results Preview: Expect Earnings To Grow 12% yoy Driven By Strong Gateway Services Performance
Highlights • Global air cargo growth has rebounded after the dip in Mar 26, with Apr-Jun 26 cargo volume growing by a high-5% yoy, by our estimate; SATS’ cargo volume is set to grow faster, at close to 10% yoy, driven by new contract wins. • SATS’ ground handling business volume should sustain a high single-digit yoy growth in 1QFY27, driven by higher business volume in Americas. • Food business volume growth is likely slower at a low-to-mid single digit, due to increased flight cancellations in Apr-May 26 amid fuel supply fears. • Overall, we forecast SATS’ 1QFY27 net profit at S$80m in 1QFY27 (+12% yoy), and raise FY27-29 earnings forecasts by 4-5% on better cargo outlook. • Maintain BUY with a slightly higher target price of S$5.00, still based on 19.7x FY28F PE, pegged to SATS’ historical mean PE
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