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PHILLIP SECURITIES |
CGS CIMB |
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Singapore Banking Monthly Loan growth at a 3-year high
▪ June’s 3M-SORA was down 14bps MoM to 2.17%, the lowest since Sep 2022 and fell by 150bps YoY. We expect the 3M-SORA to continue declining as Fed rate cuts are expected.
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Sheng Siong Group HDB to roll out 2 more tenders for 2026F
■ We visited all 6 of SSG’s recent store wins and saw that 3 stores opened in Jun 25 with 3 more likely in Jul-Aug 25F, within management’s guidance. ■ With the addition of 2 new supermarket tenders to HDB’s 2026F pipeline, SSG has the opportunity to bid for up to 3 units to open in FY26F. ■ Reiterate Add with a higher TP of S$2.21, based on 22x FY26F P/E (19x previously) on robust YTD store openings and visible HDB tender pipeline.
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CGS CIMB |
CGS CIMB |
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Building Materials Higher RMC demand from 2026F onwards
■ We expect PANU and HLA to record FY26F-27F core EPS growth of 6-22% as revenue recognition typically lags contract wins by 12-18 months. ■ We raise our coverage’s 2025-27F EPS and RMC demand forecasts. 2027F industry RMC demand could reach 18m m3 (+34% from 2024’s 13.4m m3 ). ■ Reiterate sector Overweight call in view of the elevated level of construction activities and the well-stocked project pipeline.
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Property Devt & Invt Increasing residential sellers’ stamp duty
■ The government has extended the holding period for private residential properties and increased the sellers’ stamp duty. ■ These changes aim to discourage short holding periods and curb speculative demand, said the government. ■ Retain sector Neutral. Our sector picks, ranked by preference: UOL, CLI, CIT.
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| UOB KAYHIAN | MAYBANK KIM ENG |
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Seatrium (STM SP) Anchors Market Leadership With Timely Deliveries And Expanding Orderbook
STM delivered the P-78 FPSO on schedule, showcasing execution strength in offshore production. It secured another FSRU conversion from Kinetics, adding to its growing S$21.3b orderbook which has revenue visibility to 2031. STM remains a leader in specialised, high-value projects and we expect strong 1H25 results, with margin expansion and robust profit growth underscoring its strategic diversification into renewables and cleaner energy solutions. Maintain BUY. Target price: S$2.96.
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ISOTeam (ISO SP) Small and mid-cap laggard with a bright outlook
Spate of new projects - maintain BUY ISOTeam said it won a spate of new contracts worth SGD21m. Management also expects the pace of project awards to pick up, driven by public sector upgrading works to introduce more community spaces and senior friendly amenities to both public and private estates. We expect to see more in the coming months. Drone-testing should also take place by the end of Sep 2025 on several of the Housing Development Board (HDB) build-to-order (BTO) sites. With a positive outlook, we maintain BUY with an unchanged TP of SGD0.104, pegged to a 9x blended FY25/26E P/E.
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