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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Prime US REIT Raising capital to fund growth
▪ Prime US REIT will raise US$25mn via a private placement, issuing 129mn new units (9.9% of current units) at US$0.1935 per unit (c.10% discount to 24 Sep 2025 VWAP). The proceeds will be used to fund capital expenditure, tenant incentives, leasing costs to attract/retain tenants, and meet existing tenant obligations.
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Soilbuild Construction Group Ltd More favourable industry catalysts
▪ The Singapore government announced 55,000 HDB BTO flats will be launched between 2025e and 2027e. It is 10% higher than the earlier announced 50,000 and 22% higher than the average historical 3-year sum of 45,000 HDB BTO flats launched.
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PHILLIP SECURITIES |
CGS CIMB |
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TeleChoice International Ltd A new trajectory
▪ Securing a S$500mn 3-year Fourth Party Logistics (4PL) managed services agreement from Malaysia mobile operator U Mobile in February 2024 has resulted in a significant turnaround in the profitability of TeleChoice. The company becomes the buyer, channel manager, warehouse and logistics provider of all U Mobile handphone requirements for its estimated 10mn mobile subscribers. TeleChoice has swung from adj. S$10mn net loss in FY23 to adj. net profit of S$6.3mn over the past 12 months.
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Yangzijiang Shipbuilding Wins and losses
■ YZJSB has secured US$440m of contracts of four containerships and four bulk carriers for delivery in 2027-2029, bringing YTD order to US$1.9bn. ■ However, it also terminated contracts of four oil tankers (US$180m) that it believes was related to a scheme to circumvent US sanctions law. ■ For the cancelled contracts, no revenue nor profit was recognised up to 30 June 2025 with 20% of payment collected. Work had started for one vessel. ■ We believe its share price could react to the cancellations, although it was YZJSB that initiated the action. Maintain Add and TP of S$3.90.
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| CGS CIMB | UOB KAYHIAN |
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Wilmar International Indonesian Supreme Court verdict to weigh on FY25F earnings
■ The Indonesian Supreme Court ruling may lead to a one-off Rp11.9tr (~US$709m) impairment in 3Q25F, lowering FY25F earnings and dividends. ■ While there is still an ongoing rice mislabelling investigation, we believe the financial impact should be smaller than the palm oil verdict.
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Samudera Shipping (SAMU SP) A Leading Regional Container Shipping Feeder Player Highlights
• SSL’s recent inclusion in the SGX iEdge Next 50 Index may attract liquidity. • After a strong 1H25, SSL’s 2H25 earnings are likely to slow down, in line with industry dynamics, but remain at healthy levels. • Valuation appears benign, trading at 0.67x trailing PE; its large net cash position grants scope for value unlocking through higher dividend payouts.
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