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CGS INTERNATIONAL |
PHILLIP SECURITIES |
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Food Empire Holdings Ltd Solidifying sustainable growth
■ We adjust our model and lower our target price for a 1 for 5 bonus issue announced and completed recently by FEH. ■ We expect 1H26F net profit of US$34.9m (+10.6% yoy, -6.0% hoh) when results are announced in the week of 10 Aug 2026. ■ We reiterate our Add call as FEH remains on course to grow its earnings base over FY26-28F.
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Singapore Air Transport – Jun26 Jet fuel volatility persists
• In Jun26, the aviation sector delivered a steady performance. SATS led the rally at 14.2%, followed by Singapore Airlines and SIA Engineering at 11.6% and 7.3% respectively. CAO was down 1.1%. • Singapore jet fuel prices are trending at US$115/Bbl from a high of US$240.5/Bbl in Mar26. However, prices are still volatile with renewed attacks. SIA has been relatively insulated due to its i) dual hedge structure on both Brent crude and jet fuel (hedged 35% on jet fuel, 14% on Brent crude for 2Q FY26/27), ii) rerouted demand for Asia-Europe flights stopping over in Singapore, iii) cargo flown revenue benefitting from rising cargo yields(global freight rate up 41% YoY to US$3.40/kg), iv) Scoot likely capturing the budget travel demand from regional LCCs that grounded aircraft during the conflict. • We maintain a NEUTRAL stance on air transportation amid the uncertain resolution of the US-Iran conflict. With no clear timeline for complete resolution despite the interim peace deal, the outlook of jet fuel price remains uncertain.
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| LIM & TAN | LIM & TAN |
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AIMS APAC REIT ($1.64, up 1 cent) has announced the proposed acquisition of a 9.15-hectare freehold industrial property in Hazelmere, Perth, Australia for A$42.7m (approximately S$38.4m), marking another strategic addition to its Australian portfolio. The acquisition is expected to strengthen the REIT’s income profile, increase exposure to freehold assets and provide significant long-term redevelopment optionality. The property comprises two adjoining freehold land parcels with a total land area of 91,547 sqm and approximately 12,310 sqm of warehouses, workshops and office space. It is fully leased to Swan Materials Pty Ltd under a 10-year triple-net master lease that commenced on 1 October 2025. The lease includes annual rental escalations of 3.25% and two additional 10-year renewal options, providing long-term cash flow visibility and limiting operating cost exposure for the REIT. AA REIT’s market cap stands at $1.4bln and currently trades at 1.3x PB and 6.4% yield. Consensus target price stands at $1.68, representing 2.4% upside potential. Despite the strong fundamentals and good yield, AA REIT has seen considerable price appreciation and upside currently remains limited and we thus recommend and maintain our “Accumulate on weakness” rating on AA REIT.
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Q & M Dental Group (55.5 cents, trading halt) is pleased to announce that the Company has entered into a sale and purchase agreement (“SPA”) to acquire 100% of an Australian dental group, the Experteeth Group (the “Experteeth Group”), for a consideration of approximately A$119.64 million from the shareholders of the companies comprising the Experteeth Group (the “Sellers”), following the Group’s entry into a non-binding memorandum of understanding (MOU) announced on 11 March 2026. The performance of each Seller’s obligations will be guaranteed by individual guarantors (the “Guarantors”) who are the founders of the Experteeth Group, being Jeffrey Gao and Hong Chang (the “Founders”), and other identified key dentists of the Experteeth Group. Q&M Dental is embarking on a series of acquisitions in Australia and Thailand and management aims to build the company into a Regional Dental Powerhouse with these acquisitions. While current valuations seems reasonable at 25x, forward valuations look more attractive with the acquiree’s profit guarantees. Bloomberg consensus 1 year forward target price of 70 cents implies a 1 year potential return of 25%. We maintain an Accumulate rating on Q&M Dental. |
| MAYBANK SECURITIES | DBS GROUP RESEARCH |
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iFAST Corporation (IFAST SP) Committed to scale
Positive outlook ahead of results; Maintain BUY We recently hosted iFAST’s management team at our Invest ASEAN conference, where management reiterated its commitment to scale and seek organic growth. With iFAST set to report 1H26 earnings on 24 July, we remain optimistic on its growth trajectory. Maintain BUY with an unchanged TP of SGD11.76 based on a blended DCF (WACC 6.6%, 4% terminal growth) and peer PE (target multiple of 24.1x).
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Parkway Life REIT On the ground in France
Investment Overview A rare jewel amongst S-REITs. Parkway Life REIT (PREIT) is one of Asia’s largest listed healthcare REITs by asset size offering highly visible and stable earnings. This is by virtue of its resilient industry and long leases with downside risk protection. The SGD 2.57bn portfolio comprises 3 private hospitals in Singapore, 60 nursing homes and care facilities in Japan, and 11 nursing homes in France - all markets with deep fundamentals within the aged-care space.
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