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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Air Transport – Sept25 Promotional season to support demand
In Aug25, the aviation sector delivered a mixed performance following a strong rebound in July25. China Aviation Oil (CAO) corrected by 8.6%, while SIA Engineering (SIE), Singapore Airlines (SIA), and SATS recorded stable gains of 6.2%, 0.5%, and 4.0%, respectively.
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Bumitama Agri (BAL SP) 3Q25 Earnings Preview: Expect A Stronger Print Highlights
• BAL is expected to post a stronger sequential 3Q25, with production expected to recover strongly yoy off 3Q24’s low base. • Robust cash flow generation will support higher shareholder returns. • Maintain HOLD with a higher target price of S$1.20 (from S$0.90), based on 9.5x 2026F PE.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Singapore Airlines (SIA SP) Sep 25 Pax Load Data In Line But Cargo Load A Miss; Expect Weak 2QFY26 Earnings Due To Air India Drags
Highlights • SIA’s Sep 25 pax load was in line with our expectations, up 3.7% yoy, but cargo load missed our projections, down 3.8% yoy. • We lower SIA’s 2QFY26 earnings estimate to S$30m-130m, a major drop yoy, due mainly to the Air India drags. • Maintain SELL with an updated target price of S$6.03 (previous: S$6.05).
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StarHub (STH SP) NDR takeaways – maintain BUY
Multiple catalysts in the medium term We hosted StarHub CFO Jacky Lo and IR Officer Crystal Lim for a NDR in Kuala Lumpur. Management emphasised StarHub’s intent to maintain its NT aggressive stance in the consumer segment, leveraging the competitive void created by the Simba–M1 M&A and the continued retreat of MVNOs. Industry rationalisation is anticipated over the next 12–18 months. On the enterprise front, managed services and Ensign cybersecurity continue to deliver robust growth. StarHub also remains open to inorganic expansion across ASEAN, aiming to capitalise on its core enterprise capabilities in Singapore. With Dare+ investments tapering off, management expects baseline cost savings of approximately SGD10m pa, with potential upside of 3–4x as new efficiency initiatives gain traction. We reiterate BUY on StarHub on a DCF based TP of SGD1.35, underpinned by multiple mediumterm catalysts while a 6% dividend yield and a strong balance sheet provides downside protection.
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| UOB KAYHIAN | LIM & TAN |
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Automobile Weekly: China Auto Sector Faces Geopolitical Bind
Highlights • China’s auto sector faces a geopolitical bind: Europe demands tech transfers for new investments, while China restricts such transfers. • China raises market access requirements for automakers, targeting inexperienced players. • Maintain MARKET WEIGHT. Top BUYs: CATL and Geely. Top SELLs: BYD and Li Auto.
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CapitaLand Investment / CLI (S$2.65, down 1 ct) announced that Extra Space Asia (ESA), its self-storage platform, is investing nearly S$100 million in its first build-to-suit flagship development in Singapore and acquiring three freehold self-storage facilities in Tokyo, Japan. CLI’s market cap stands at S$13.2bln and currently trades at 20.2x forward PE and 1.1x PB, with a dividend yield of 4.5%. Consensus target price stands at S$3.39, representing 27.9% upside to 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. |
