ANALYSTS SAY: Buy, Sell, Hold (27 Oct)

UOB KAYHIAN

Strategy – SMID Cap Corporate Day

Key Takeaways – Construction Upcycle Remains Intact

Overview

• Pan-United (PAN), Hong Leong Asia (HLA) and Huationg Global (HUAGL) participated in the SMID Cap Corporate Day on 21 Oct 26.

• Each session saw 10-15 institutional investors both in-person and virtual. Discussions centred on Singapore's construction upcycle, diesel cost passthrough, orderbook visibility and HLA's AI data centre genset opportunity

• The meetings confirmed our positive view on the construction upcycle with ample new project opportunities and sustainable margins.

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iX Biopharma Ltd

Under the tongue, over the hurdle

Rating BUY (as at 26 October 2026)
Last Close SGD0.435
Fair Value SGD0.920

• The USD41m US Department of Defense (DoD) contract funds Wafermine's Phase 3 and Emergency Use Authorisation (EUA) work without dilution

• An EUA would provide an early regulatory and manufacturing proof-point, ahead of Phase 3 data that we see as the main value catalyst

• Initiate with BUY rating and fair value (FV) of SGD0.92, using a discounted cash flow (DCF) valuation of the operating business plus Wafermine's net present value (NPV)

OUE REIT

Doubling down on the land down under

Rating BUY (as at 26 October 2026)
Last Close SGD 0.345
Fair Value SGD 0.385

• Proposed acquisition of an additional 50% interest in Salesforce Tower is expected to be 3.2% accretive to pro forma 1H26 distribution per unit (DPU)
• The timing of the acquisition and majority control over the asset are key positives, but there remains some uncertainty around funding cost
• Higher fair value (FV) estimate of SGD0.385 (previously: SGD0.375)

CapitaLand China Trust

Growing China Behemoth

Investment Overview

Proxy for China recovery. CapitaLand China Trust (CLCT), with its pure-play China exposure diversified across retail (75%) and new economy assets such as business parks and logistics (25%), is a key proxy for China’s real estate recovery.

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3Q26 Business Update:

Execution delivers, Starbucks the next test.

Underlying core profit grew 17% y/y, supported by higher profitability in Health & Beauty and Home Furnishings, lower SG&A expenses and a higher contribution from Maxim’s

Stable FY26 margin guidance for Health & Beauty and Convenience alleviates a key investor concern following weaker-than-expected segmental margins in 1H26

Raised the lower end of FY26 earnings guidance to USD295mn from USD285mn, while maintaining the upper end at USD305mn; midpoint of USD300mn is 2% above consensus

Execution on the newly acquired Starbucks business remains key to a more meaningful rerating; Maintain BUY with TP of USD4.50

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TeleChoice International Limited ($0.198, unchanged) has won a contract renewal estimated at S$1.3 billion from U Mobile Sdn. Bhd. (“U Mobile”), one of Malaysia’s leading telcos. The Group’s wholly-owned subsidiary, Planet Telecoms Managed Services Sdn. Bhd. (“PTMS”), will continue to provide U Mobile with end-to-end supply chain services. The renewed contract’s annual value is higher than that of the first, reflecting an expanded scope of services. The first contract was announced in February 2024 and valued at S$500 million over three years.

Telechoice is trading at 9x FY26PE with earnings of $10mln in FY2026 and market cap at $90mln with growth of 50% and with valuations at even more attractive levels in FY2027 as the new contractual agreement with U-Mobile kicks in. With forward dividend yields of 3%-4% and net cash of $4mln (gross cash of $20mln) and Bloomberg consensus 1 year target price of 33 cents, implying a potential return of 65% we believe it justifies an “Accumulate” rating for Telechoice International.