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CGS CIMB |
CGS CIMB |
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REIT A mixed bag
■ We expect a mixed set of results during this reporting season, with overall sector DPU to remain relatively flat yoy. ■ Key guidance to watch for include updated debt cost guidance and potential impact from global tariff hikes. ■ Maintain Overweight on SREITs. Our picks are CLAR and KDCREIT.
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Property Devt & Invt Higher yoy new home sales in Jul 2025
■ Jun 2025 ex-EC private home sales fell c.13% mom but rose 19% yoy. ■ We expect robust Jul 2025F homes sales due to new launches. ■ Retain sector Neutral. Our sector picks, ranked by preference: UOL, CLI, CIT
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UOB KAYHIAN |
UOB KAYHIAN |
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UMS Integration (UMSH SP) Expect Good Results And Multiple Re-rating; Raise Target Price By 31% To S$1.73
We expect multiple positive catalysts ahead for UMS: a) In its latest outlook, UMS expects to achieve its double-digit revenue growth guidance for 2Q25 as it continues to see healthy orders from its key customers who remain positive in their latest guidance; b) its dual listing on Bursa Malaysia is attracting strong investor interest, which should help narrow UMS’s valuation gap of about 25% vs its Malaysia peers; and c) higher market engagement. Maintain BUY with a 31% higher target price of S$1.73.
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Technology – Malaysia Penang Insights: Maintaining Resilience, Growth Visibility Improves
Our Penang trip suggests that despite a fluid landscape, end-customer orders across most players remain largely intact, with no major cancellations or pushbacks. We believe this resilience is underpinned by a cohesive ecosystem, geographic neutrality, and robust talent and vendor pool built over the years − providing a competitive edge amid global shifts. An attractive risk-reward proposition underpinned by improving growth visibility supports our sector OVERWEIGHT call.
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| LIM & TAN | LIM & TAN |
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Student housing is set to be transformed with the launch of EPIISOD – a new premium student housing brand from global purpose-built worker and student accommodation provider Centurion Corporation Limited ($1.77, up 0.02). The first EPIISOD property is already under development in Macquarie Park, with a capacity of more than 700 beds expected to be ready for move-in by Semester 1 in February 2026. Students will be able to register for residency from today – 15th July – via the EPIISOD website. At Centurion Corp’s last traded price of $1.75, it is capitalized at $1.47bln and trades at 13.5x consensus FY25 forward PE and 1.3x price to book and 2% dividend yield. It is currently trading around Bloomberg consensus 1 year target price of $1.70/share implying limited capital upside from here. Centurion Corp has been on our top pick list since last year and its share price has done extremely well, outperforming both the market as well as sector peers, thanks to its upcoming corporate action (spin-off of its assets via a REIT listing on SGX). Given the limited capital upside from here, we would look to “Accumulate on Weakness” ahead of its REIT listing in 2H’25.
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PropNex Limited ($1.23, down 0.04), Singapore’s largest listed real estate agency, is commemorating its 25th anniversary with a strong focus on purpose and impact. Demonstrating its commitment to nationbuilding and community development, the Company today announced over $30 million in philanthropic initiatives and a leadership transition as it enters its next chapter of growth. At $1.23, Propnex is capitalized at $910mln and trades at 14-15x forward against growth of 40-50% while its normalized yield of 5% is attractive, we note that this year being its 25th anniversary, we believe that like how they celebrate in returning to the community, shareholders of Propnex will likely be looking ahead for something special as Propnex reports its interim results in Mid-Aug’25. While consensus target price of $1.35-1.40 shows limited capital upside, we believe the attractive returns that beckons will likely continue to attractive yield-focused investors to remain invested or even add more to their holdings. Hence, we maintain an “Accumulate on Weakness” rating on Propnex. |
