ANALYSTS SAY: Buy, Sell, Hold (28 Oct)

OCBC GROUP RESEARCH

CapitaLand Ascott Trust

Riding out the little bumps in the road

Rating BUY (as at 27 October 2026)
Last Close SGD 0.825
Fair Value SGD 0.895

• 3Q26 gross profit was stable year-on-year (YoY), excluding the impact from the closure of The Cavendish London (TCL) for renovations
• Transitional impact from portfolio reconstitution was offset by stronger operating performance; same-store 3Q26 portfolio
revenue per available unit (RevPAU) of SGD164 was 4% higher YoY
• Lower fair value (FV) estimate of SGD0.895 (previously: SGD0.950) on a higher risk-free rate assumption

Investment thesis
CapitaLand Ascott Trust (CLAS) is the largest lodging trust in Asia Pacific, with 106 hotels, serviced residences, rental housing, and student accommodation across 45 cities in 16 countries as at 30 September 2026. While discretionary travel spending is levered to the ebbs and flows of the economic cycle, we like that: (i) CLAS’s portfolio is well-diversified across many geographies; (ii) the REIT enjoys income from a mix of stable and growth sources; and (iii) CLAS has exposure to the living sector – including student accommodation in the US, rental housing in Japan, and co-living spaces in Singapore – for which demand is less likely to be affected by any weakening in the global macroeconomic outlook.

We also see CLAS’s ongoing portfolio rejuvenation as a positive for long-term growth and sustainability.

Info-Tech Systems Ltd

Growth runway intact

Rating BUY (as at 27 October 2026)
Last Close SGD 0.79
Fair Value SGD 1.35

• 9M26 revenue (+20% YoY) fell short of our expectations on lower-than-expected 3Q26 Academy revenue. We trim FY26E revenue / Adj. PATMI by 6% to realign our Academy run-rate expectations.
• Singapore and Malaysia Subscription growth was in line. Info-Tech Systems (ITL) is optimistic about growth over the next 12 months.
• Unchanged fair value (FV) estimate of SGD1.35, based on 16x FY27E price-to-earnings (P/E) multiple. ITL currently trades at an attractive 9.3x FY27E P/E and 5.3% FY27E dividend yield. Reiterate BUY.

Investment thesis
We see ITL as a beneficiary of artificial intelligence (AI) rather than being negatively impacted by it. ITL’s core subscription business is anchored in small and medium enterprises (SMEs) across Singapore, Malaysia, Hong Kong and India, with attractive runway where affordability, local compliance know-how and deep integration into human resource (HR), payroll and workflow processes make switching relatively difficult. At the same time, Academy gives ITL a direct route to monetise AI-readiness demand through individual and corporate
training programmes. Backed by a capital-light model and robust free cash flow, we view ITL as an attractive dividend compounder.

UI Boustead REIT (S$0.78, unchanged) delivered a maiden DPU of 3.71 Singapore cents, 0.8% ahead of its forecast of 3.68 cents, supported by resilient portf olio operati ons and stronger contributi ons from joint ventures. Based on its closing price of S$0.81 as at 30 September 2026, the REIT off ers an annualised distributi on yield of approximately 8.3%. The REIT listed on 12 March 2026 and currently owns 23 completed properti es, comprising 21 in Singapore and two in Japan, with a total portf olio valuati on of approximately S$1.9bn.

UI Boustead REIT’s market cap stands at S$1.1bln and currently trades at 0.9x PB, with an annualized dividend yield of 8.3%. Consensus stands at S$1.02, representi ng 30.8% upside potenti al. We like that UI Boustead REIT is supported by stable occupancy, healthy rental reversions and an att racti ve 8.3% annualised distributi on yield. The co-development pipeline provides medium-term growth visibility, while low borrowing costs and manageable gearing off er fi nancial fl exibility. Nevertheless, weaker Singapore logisti cs occupancy, yen depreciati on and potenti al increases in borrowing costs remain key risks. The successful leasing of 84 Boon Keng Road and executi on of its development pipeline will be important catalysts for future DPU growth. As such, we recommend an Accumulate on UI Boustead REIT.

Mapletree Industrial Trust / MIT ($1.79, unchanged) announced today MIT’s results for the Second Quarter Financial Year 2026/2027 ended 30 September 2026 (“2QFY26/27”) and First Half Financial Year 2026/2027 from 1 April 2026 to 30 September 2026 (“1HFY26/27”)

MIT’s market cap stands at S$5.1bln and trades at 1.1x PB, with a dividend yield of 6.7%. Consensus target price stands at S$$1.89, representi ng 5.6% upside from current share price. MIT is expected to face several headwinds including non-renewal of several leases, higher borrowing costs and absence of income from divested assets. Given weakness expected coupled with limited upside to consensus target price, we maintain HOLD on MIT.

Aztech Global Ltd

Weakening order momentum

Investment Overview

Near-term outlook remains subdued as new projects ramp gradually. Customer demand is expected to remain soft in 4Q26, with contributions from new projects unlikely to fully offset weaker orders from existing customers. The gradual ramp-up of its New Product Introduction (NPI) pipeline, coupled with persistent competitive pressures, foreign-exchange volatility, cost inflation and limited demand visibility, is likely to weigh on revenue growth and margins over the near term. 

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Singapore Technologies Engineering Ltd

3Q26 contract wins hit a record SGD5.6bn, but less favourable mix tempers enthusiasm

Record 3Q26 contract wins of SGD5.6bn (+14% y/y, +93% q/q) lifted 9M26 orders to SGD13.2bn.

USS led with SGD2.4bn in orders, including SGD1.6bn from two previously announced Taiwan rail contracts, supporting longer-term revenue visibility.

DPS orders fell 25% y/y while CA remained flat, tempering earnings upside despite FY26 contract-win guidance remaining achievable.

Maintain BUY, TP unchanged at SGD12.40

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