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UOB KAYHIAN |
LIM & TAN |
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LHN (LHN SP) Coliwoo Spin-off Unlocks Value, Self-Storage Adds Upside
Highlights • SGX approval for Coliwoo’s IPO is a key catalyst, with LHN retaining a 70% stake. • Coliwoo’s portfolio has expanded to 2,960 keys, while Work+Store taps into the 10-15% growth in Singapore’s self-storage industry. • Trading at 10.7x FY26F PE, LHN’s valuation remains attractive at a 40% discount to peers. We maintain BUY with a higher target price of S$1.12.
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Marco Polo Marine ($0.076, down 0.1 cents) a reputable regional integrated marine logistics company, today announced the strategic expansion of its fleet with the addition of two new Anchor Handling Tug Supply (AHTS) vessels. With a combined value of approximately US$34 million, these vessels are expected to join the fleet in 2026, strengthening the company’s position in the offshore marine and renewable energy sectors. MPM’s market cap stands at S$285.3mln and currently trades at 9.5x forward PE and 1.5x PB, with a dividend yield of 1.3%. Consensus target price stands at S$0.086, representing 13.2% upside from current share price. The previous ship chartering orderbook updated coupled with increased CSOV shipbuilding (after they have built CSOV 1) show cases MPM’s abilities and reinforces our view that the worst is over for MPM. As such, we continue to maintain a BUY recommendation on MPM. |
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LIM & TAN |
DBS GROUP RESEARCH |
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CLI’s ($2.68, down 2 cents) Ascott Limited, the wholly owned lodging business unit of CapitaLand Investment (CLI), has hit a major milestone with its Citadines portfolio surpassing 200 properties globally, driven by asset-light growth through management and franchise agreements. The upper-midscale conversion brand now comprises 205 properties and approximately 35,000 units. Of these, more than 60%, or 127 properties and about 22,200 units, are currently operational. CLI’s market cap stands at S$13.4bln and currently trades at 20.5x forward PE and 1.1x PB, with a dividend yield of 4.5%. Consensus target price stands at S$3.40, representing 26.9% upside from current share price. We remain constructive on CLI given its ongoing monetization efforts to reduce matured assets and re-cycle capital into faster growing platforms to help generate recurring and higher ROE income streams. Coupled with a dovish environment, we maintain BUY on CLI.
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Regional Banks: Paying big dividends, but for how long?
• Regional Banks have been returning excess capital to shareholders with forward dividend yields of 4-10% still attractive; Thai Banks lead with highest yields in region • Our analyses shows that China SOE banks, HSB, UOB, and BMRI are at risks of cutting dividends into FY26F, while dividends from other banks could be sustained • As Fed turns dovish, focus on banks with strong earnings visibility, stable asset quality, and sustainable or growing dividends • Top picks: BBCA, SCB, TTB, BOCHK, ICBC
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| DBS GROUP RESEARCH | |
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Mapletree Pan Asia Commercial Trust
Seize the upswing Investment Thesis: Attractively valued large-cap REIT. Mapletree Pan Asia Commercial Trust (MPACT) is an undervalued quality S-REIT, trading at c.0.8x price-to-book. Its two prized jewels in Singapore – VivoCity (a dominant mall) and Mapletree Business City (MBC) (among the top quality business parks), anchor c.54% of MPACT’s income – offering income visibility to offset weakness in overseas assets. Both assets should further benefit in 2026 with the completion of the Circle Line loop.
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