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PHILLIP RESEARCH |
PHILLIP RESEARCH |
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Zixin Group Holdings Ltd Insiders raising their stake
• Insiders are raising stakes in Zixin through 5 year share options of up to 889,000,000 ordinary shares (34% of total shares) at an exercise price of S$0.03 per share. We view the corporate action positively, as the investors are mainly existing shareholders (e.g., CEO) which underscores management’s long-term commitment and confidence in the company’s growth trajectory. The net proceeds of S$26.6mn (c.51% of market capitalization) will be primarily used to fund expansion plans such as Hainan and Singapore (75%) and working capital requirements (35%).
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Singapore REITs Monthly Two more rate cuts expected in 2025
▪ The S-REITs Index rose 2.3% in August 2025, extending the 2.4% gain in the prior month, bringing the YTD return to 7.3%. The top performer for the month was Manulife US REIT (MUST SP, non-rated), which gained 15.2%, while the worst performer was IREIT Global (IREIT SP, non-rated), which fell 6.8%. Among the sub-sectors, Singapore’s diversified sector was the best performer, rising 6.3%, while the overseas industrial sector was the weakest, declining 0.9%.
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LIM & TAN |
MAYBANK KIM ENG |
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ComfortDelGro ($1.49, down 1 cent) announced recently the acquisition of remaining shares in Citycab.
At its last traded price of $1.49, ComfortDelgro is capitalized at $3.2bln and trades at 14x forward PE and 1.2x PB. Dividend yield is decent at 5.5% while consensus target price of $1.73 implies a 1 year potential capital return of 16.1%. We continue to like ComfortDelgro for its attractive yield and decent growth of 15-20% going forward, hence, we maintain an "Accumulate" rating on Comfordelgro.
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ComfortDelGro (CD SP) On the move
Earnings boost in the pipeline; retain BUY and TP CD and RATP Dev’s JV consortium, KBH Metro Partner has been prequalified to bid for an operations and maintenance contract for the Copenhagen Metro. Tender submission is only in 1Q26 with award likely around 3Q26. Earlier this month, CD also announced that it is acquiring the rest of CityCab from STE for SGD116.3m. Valued at 3.9x adjusted EV/EBITDA and 13x P/E, we expect the deal to be EPS accretive to CD. The group will see about 4 months of earnings contribution in 2025 (or SGD2+m/ +1% of our FY25E) from its additional stake in CityCab. We maintain our estimates for now and BUY with an unchanged DCF-TP of SGD1.70.
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| MAYBANK KIM ENG | |
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OKP Holdings (OKP SP) A Bargain In Singapore’s Infrastructure Upcycle
Highlights • 1H25 net profit surged 61% yoy, translating to a modest 9x 2025F PE per consensus or just 6x ex-cash PE, among the lowest in the sector. • Strong orderbook of S$648m reinforces OKP as a key beneficiary of Singapore’s infrastructure upcycle. • Robust net cash (around 33% of market cap) enhances tendering capacity and flexibility to capture growth opportunities.
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