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CGS CIMB |
UOB KAYHIAN |
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REIT Yielding outperformance
■ We expect continued interest cost savings momentum, robust operating metrics and accretive acquisitions supported DPU performance in 3QCY25F. ■ We have raised our DDM-based TPs by 0-15% across our coverage universe, underpinned by the declining Singapore 10-year bond yield trend. ■ Reiterate sector Overweight. Our sector top picks – CLAR, CICT, LREIT
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Riverstone Holdings (RSTON SP) AI-Related Demand To Drive Sequential Improvement, Leaving The Worst Behind Us; Upgrade To BUY
Highlights • Sequential improvement in 3Q25 expected, driven by 10% cleanroom volume growth from AI-related customers and softer input costs. • With >100% payout and robust RM602m net cash, dividends remain attractive at an estimated 2026F yield of 7.3%, offering a good entry level. • Upgrade to BUY with a 38% higher target price of S$0.98 (up from S$0.71). Riverstone’s 15x 2026F PE is trading at more than 40% discount vs its peers.
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LIM & TAN |
LIM & TAN |
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Netlink Trust ($0.96, up 0.5 cents) officially opened the Seletar Central Office (“Seletar CO”), a $110 million investment that enhances the resiliency of Singapore’s Nationwide Broadband Network (NBN). Netlink Trust’s market cap stands at S$3.7bln and currently trades at 37x forward PE and 1.6x PB, with a dividend yield of 5.6%. Consensus target price stands at S$1, representing 4% upside from current share price. We continue to like Netlink Trust for it’s steady, defensive and easy to understand business that operates in a increasingly dovish environment. However, given the low upside potential, we recommend an Accumulate on weakness recommendation on Netlink Trust.
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Medtech company Forefront Medical Technology is a whollyowned subsidiary of Vicplas International (S$0.088, down 0.3 cts). Vicplas designs and manufactures medical devices through Forefront Medical, as well as manufactures and distributes piping systems through Vicplas Pipes. Market cap stands at S$45.0mln, the company is loss-making, trades at 0.6x P/B and does not pay dividends. Profitability from its pipes segment due to robust construction activities is offset by losses from its medical devices segment due to start-up costs at its new Mexico plant and Changzhou plant extension. There is currently no analyst coverage on Vicplas International. |
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Singapore Property Developers
Renewal in the Air • Despite a 50% rise in price, property developers continue to trade at 0.5x P/B or a 60% discount to RNAV, underpinned by ongoing value-unlocking strategies • Robust pre-sales have proven to be stock price catalysts in recent times, positioning our preferred developers (UOL, CDL, GUOL) favourably due to their strong pipeline • Rejuvenation of Orchard Road and Marina Area could drive next phase of value unlocking for selected names • We are monitoring mid-caps: HPL, Ho Bee Land, and Bukit Sembawang for their potential value enhancement opportunities
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