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UOB KAYHIAN |
UOB KAYHIAN |
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Offshore Marine – Singapore Full Steam Ahead If You’re In Singapore
Global shipping and offshore markets have slowed in 2025 amid geopolitical uncertainty, with newbuild orders down 54% yoy and some rig dayrates showing softness. While US energy companies revealed cautious guidance at their 2Q25 earnings announcements, we remain optimistic on STM and MPM while YZJSGD’s recent rally affirms improving sentiment, with valuations remaining attractive. Sector view maintained at OVERWEIGHT.
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iFAST Corporation (IFAST SP) 2Q25: Earnings Momentum Justifies Higher Valuation; Raise Target Price By 36% To S$9.92
iFAST’s 2Q25 PATMI of S$22m (+38% yoy) slightly beat expectations on the back of stronger HK ePension contributions, iGB’s turnaround, and steady core wealth management growth. A 33% higher interim dividend was declared, with full-year payout guided at at least 8.0 S cents/share. AUA hit a record S$27.2b. To date, 14 of 24 MPF schemes have been onboarded, and we expect stronger 2H25 contributions as onboarding progresses. Maintain BUY with a 36% higher target price of S$9.92.
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UOB KAYHIAN |
CGS INTERNATIONAL |
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Raffles Medical Group (RFMD SP) 1H25 Results: A Slight Miss; Remain Hopeful For A China Turnaround In 2026.
RFMD’s 1H25 results were a slight miss, despite higher revenue (+3.5% yoy) and PATMI (+4.8% yoy). Revenue for the healthcare service segment rose only marginally yoy due to the cessation of the Expo TCF in early-25.
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REIT | First take: MINT, CLAS, EREIT OVERWEIGHT - Maintained
■ MINT’s and CLAS’s latest results were within expectations. We deem EREIT’s 1H25 DPU in line at c.52% of our FY25F, due to capital top-ups.
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| LIM & TAN | LIM & TAN |
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Singapore Airlines ($7.60, up 3 cents) announced that group revenue climbed $72 million (+1.5%) year-on-year to $4,790 million in the three months ended 30 June 2025. Despite economic and geopolitical uncertainties across the network, demand for air travel and cargo remained strong. SIA and Scoot carried a record 10.3 million passengers, up 6.9% from the same quarter last year. Group passenger load factor inched up 0.7 percentage point to 87.6% as traffic growth of 4.1% surpassed capacity expansion of 3.3%. Passenger yields slipped 2.9% to 10.0 cents per revenue passenger-kilometre amid heightened competition as more airlines continue to add capacity. SIA’s market cap stands at S$22.5bln and currently trades at 16.1x forward PE and 1.2x PB, with an indicative dividend yield of 5.3%. Consensus target price stands at S$6.85, representing 10% downside from current share price. Market consensus suggests SIA’s fundamentals are challenged by the likely end of the post- COVID travel boom and rising operating costs, limiting its ability to achieve significant yearon-year growth and leading analysts to largely recommend a “HOLD” rating on the stock. Likewise, we continue to recommend a HOLD on SIA.
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CapitaLand Ascott Trust / CLAS ($0.905, down 0.5 cts) achieved a 6% increase in gross profit year-on-year (y-o-y), reaching S$182.5 million for 1H 2025. Revenue was also up 3% y-o-y to S$398.5 million. The higher gross profit and revenue were mainly attributed to stronger operating performance, CLAS’ portfolio reconstitution strategy and asset enhancement initiatives (AEI). On a same-store basis, both gross profit and revenue grew 4% y-o-y in 1H 2025. At 90.5 cents, CLAS is capitalized at $3.4bln and trades at forward div yield of 6.7% and 0.8x price to book. CLAS has maintained stable 1H 25 DPUs of 2.53 cts, supported by its diversified portfolio of lodging assets across 16 countries. Based on Bloomberg consensus 1 year target price of $1.11, upside potential is 22%. We continue to like the recycling initiatives from lower yielding matured assets to faster growing growth-oriented assets. We maintain “Accumulate” on CLAS given its still undemanding valuations and ability to benefit from resurgence of global tourism and also lower interest rates ahead. |
