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UOB KAYHIAN |
MAYBANK SECURITIES |
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Banking Benefitting From Higher For Longer Bond Yields And Interest Rates
Highlights • MAS expects core inflation to remain elevated till 1H27 and has increased the rate of appreciation of the S$NEER policy band. Money supply M2 has slowed to a growth of 2.7% yoy in Jul 26, reflecting MAS’ tightening bias. Assuming the current pace of rise at 5bp/month is maintained, we estimate three-month compounded SORA would reach 1.4% by end-26.
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Genting Plantations (GENP MK) Approaching 1.0m sq ft in NLA of rental space by end-2027 Steadily growing its recurring income portfolio Over the past 14 years, GENP has grown its share of recurring rental income of the premium outlets (PO) from near zero in FY11 to MYR42m in FY25, or 12% of group net profit.
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| UOB KAYHIAN | LIM & TAN |
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Sunway Construction (SCGB MK) Retracement Offers Opportunities; Upgrade To BUY
Highlights • Suncon has achieved a record-high orderbook of RM10.5b. We remain confident that the group will achieve its orderbook replenishment of RM7b9b in 2026. • Suncon’s implied dividend yield of 4.8-6.5% for 2026-27 (based on 100% dividend payout assumptions) remains appealing. Upgrade to BUY with an unchanged target price of RM8.44, which implies 22x 2027F PE.
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Uni-Asia Group owns nine geared dry bulk vessels that contribute the majority of their total revenue, and runs a Japanese property asset-management business that generates recurring fee income on a small asset base. It currently trades at a steep discount to book, at a P/B of 0.5x that we believe makes it extremely undervalued, compared to a peer average of 0.8x. Five of its nine ships re-fix during 2H2026 into a Handysize benchmark that has climbed roughly 30% from its 2025 average, while crew, insurance and depreciation barely move, so almost every extra dollar of hire reaches operating profit. Given the convergence of multiple macro tailwinds, a management and vision revamp, as well as strong revenue visibility, we initiate Uni-Asia Group with a BUY, with a target price of S$1.39, pegged to a blended peer’s average of P/B and forward P/E.
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| DBS GROUP RESEARCH | |
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From China discount to selective opportunities China is entering a new phase of growth and capital market development, shifting from scale-driven expansion towards productivity, innovation and capital efficiency. As AI, advanced manufacturing, green technology, healthcare, and new consumption models reshape the economy, growth is becoming more selective, while improvements in corporate governance, capital allocation and investor participation should strengthen the transmission from economic growth to shareholder returns. The opportunity therefore lies not in broad China beta, but in selective exposure to companies best positioned to capture structural growth, productivity gains and durable value creation.
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