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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Banking Monthly Banks' share price recovers
▪ May’s 3M-SORA was down 16bps MoM to 2.31%, the lowest since Oct 2022 and 49bps lower than the 1Q25 average. We expect the 3M-SORA to continue declining as Fed rate cuts are expected.
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Singapore Exchange (SGX SP) On Track For A Record Year
SGX reported strong operating statistics which saw SDAV grow in May 25, driven by increased market turnover value for the financial and telco sectors. Total derivative traded volumes also grew, largely driven by higher forex futures but dragged by softer volumes from equity index and commodity futures. Despite the upcoming deployment of the S$5b EMDP fund, we opine that SGX is fairly valued at current price levels. Maintain HOLD but with a higher PE-based target price of S$14.08.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Automobile – China Weekly: China’s 60-Day Payment Rule Reshapes Auto Industry
China's new 60-day payment mandate marks a turning point for the auto industry, squeezing OEM cash flows while unlocking liquidity and innovation for suppliers. We maintain earnings estimates of auto companies unchanged, pending the policy enforcement. China’s PV insurance registrations dropped 7.6% wow in the 23rd week of 2025, due to the Dragon Boat Festival holiday and the typical early-month lull in demand. Maintain MARKET WEIGHT. Top BUYs: Desay SV and Tuopu.
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Malaysia Gloves Sector Oversupply risks mount
Tougher road ahead
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| DBS RESEARCH | DBS RESEARCH |
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Singapore REITs
Winds of change • Divergent performance between industrial and retail REITs likely to reverse as trade tensions ease • Turnaround in DPUs (FY25-27F) to be driven by stabilising operating metrics, acquisitions, and lower funding costs • Industrial REITs trading at -1SD across key valuation metrics; implied asset yields of 6.0%, higher than book cap rates • Prefer CLAR, MLT, EREIT for potential “alpha opportunities”
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SIA Engineering New contract, new earnings trajectory
Investment Thesis: Technology edge and strong captive business volumes owing to SIA parentage; well positioned for long-term MRO demand growth given established partnerships with leading OEMs.
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