ANALYSTS SAY: Buy, Sell, Hold (6 Oct)

UOB KAYHIAN

CapitaLand Ascott Trust (CLAS SP)

Disciplined Reconstitution To Pivot Towards The Living Sector

Highlights

• CLAS has recycled capital by deploying divestment proceeds from The Robertson House to acquire the higher-yielding Coliwoo Midtown with an EBITDA yield of 4.1%. The transaction is estimated to be 2.4% accretive to DPU.

• CLAS has sizeable past divestment gains totalling S$300m, which could be distributed to offset negative impact from ongoing AEIs to stabilise DPU.

• CLAS continues to create value through disciplined portfolio reconstitution. It provides an attractive 2027F DPU yield of 7.3% due to unit price correction of 13.1%. Maintain BUY. Target price: S$0.99.

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Follow the activity, not the fuel - Singapore Aviation

• lobal passenger traffic is stabilising, with healthier bookings and c.2-3% scheduled capacity growth in 4Q26
• Cargo remains the key outperformer; raise 2026 growth forecast to 4-5% from 1-2%, with momentum extending into 2027 
• Aftermarket demand remains robust despite higher aircraft deliveries, supported by low retirement rates and overlapping legacy/new-generation maintenance cycles
• Position for activity, not fuel sensitivity: SATS  > SIAEC  > STE  > CAO  > SIA, balancing valuation, earnings visibility and macro sensitivity

Aviation activity is holding up better than airline-sector earnings and, in several cases, better than valuations imply. 

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Hong Kong Property

Major Developers’ Balance Sheets And Profitability Repaired; SHKP Family Buying; Residential Prices Consolidating

Highlights

• Developers' latest results sent a positive signal. Hong Kong development margins recovered in 1H26. Net gearing fell at SHKP, Wharf REIC, Kerry and Hysan, while New World and Link REIT saw higher gearing.

• SHKP's controlling shareholder is buying. Kwong Siu-hing bought 2.41m shares (about HK$258m) between 11 Sep 26 and 2 Oct 26, lifting her stake from 28.13% to 28.21%.

• Maintain MARKET WEIGHT; prices are consolidating. The RVD price index rose 7.0% in 8M26. Rents are at a historical high, but agreements nearly halved from Jun 26 to Aug 26 as Mainland rules on offshore money tightened and 1M HIBOR reached 3.02% on 28 Sep 26. We expect prices to move sideways in 2H26. Top picks: SHKP, Kerry Properties and Link REIT.

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EGP Energy Corporation Limited
Hidden leader with >40% upside

Rating BUY (as at 6 October 2026)
Last Close SGD0.73
Fair Value SGD1.05

• Market-leading T&D contractor and one of only 16 firms in
Singapore holding the BCA SY04 L6 Unlimited certification with a 37.5% EHV/HV switchgear market share
• Robust SGD296.2m order book (4.8x FY25 revenue) is expected to drive an average annual growth of 36% from FY25 to FY28E, with SGD57m net cash for dividend and regional expansion
• Initiate with a BUY rating and a target price of SGD1.05 based on a target P/E multiple of 16.5x, implying 43% upside

Civmec Limited (S$1.52, unchanged) is pleased to advise that it has recently secured a series of new contract awards and extensions with a combined value exceeding A$220 million.

Civmec’s market cap stands at S$776mln and currently trades at 15.2x forward PE with a yield of 3.6%. Consensus target price stands at S$1.84, representi ng 21.1% upside from current share price. The recent order win has boosted its order book to A$1.5bln, providing visibility for the next couple of years. Civmec remains well positi oned to benefi t from sustained resources acti vity, opportuniti es surrounding the Henderson Defence Precinct and sovereign shipbuilding, as well as infrastructure projects such as Perth Park. In view of more promising prospects ahead, but with valuati ons creeping up with the rise in share price since the start of the year, we maintain “Accumulate on Weakness” on Civmec. 

Geo Energy (S$0.60, up 0.5 cents) announced that it has stepped up its share buyback programme with the repurchase of 6.0mn shares for an aggregate consideration of S$3.6mn on 5 October 2026, marking its largest-ever single-day share buyback. This comes aft er the Group’s profit guidance issued on 28 September 2026, where management highlighted expectations for significantly stronger earnings in 3Q2026. Prior to the latest transacti on, Geo Energy had already repurchased 5.8mn shares in 2026. The Board believes that the current share price remains undervalued relative to the Group’s underlying assets, earnings outlook and longer-term growth potential.

Geo Energy’s market cap stands at S$1.06bln and currently trades at 12.7x forward PE and 1.5x PB, with a dividend yield of 0.7%. Consensus target price stands at S$0.79, representing 31.7% upside from current share price. Given the completion of MBJ, which should support higher coal volumes and structurally lower logistics costs, alongside firmer coal prices and Geo Energy remaining on track to meet its production and sales targets, we see further upside potential for the stock. With earnings momentum expected to strengthen into FY2027 and MBJ providing an additional recurring infrastructure income stream, we maintain our BUY recommendation on Geo Energy.