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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Singapore Airlines Flying high, landing heavy in India
• 1H26 PATMI (ex-associates) / with associates declined by 15.1% / 67.9% YoY to S$595m / S$239m, forming 59% / 24% of full-year estimates. The decline was due to a S$375m associate loss, which is largely attributable to Air India. A S$103m reduction in interest income further compounded the loss, arising from lower cash balances following dividend payouts and loan repayments, coupled with interest rate cuts.
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Singapore REITs Monthly Lower financing costs to drive DPU growth
▪ The S-REITs Index rose 2.1% in October 2025, extending September’s 1.7% gain to bring YTD returns to 11.4%. The top performer for the month was Digital Core REIT (DCREIT SP, non-rated), which rose 8.4% following a strong 3Q25 operational update. The worst performer was Manulife US REIT (MUST SP, non-rated), which fell 5.3% as it has yet to reduce aggregate leverage to below 50%. Among the sub-sectors, Singapore diversified was the strongest, rising 3.5% on the back of solid operating performance in retail and office assets. The overseas commercial sector was the weakest, falling 0.1%, weighed down by MUST.
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PHILLIP SECURITIES |
CGS International |
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Thakral Corporation Ltd Monetising assets through IPOs and divestments
▪ 3Q25/9M25 PATMI surged 382%/767% YoY, exceeding our expectations and reaching 17%/110% of our FY25e forecast. The performance was driven by the unrealised valuation gain of S$102.4mn from the GemLife IPO (9M25), as well as the fair value gain on GemLife’s listed stake and the sale of the Yotsubashi Nakano building, which was sold at 13.7% above book value and generated a S$2mn net gain (3Q25). Excluding these items, 3Q25 PATMI was in line with estimates. For 9M25, the lifestyle segment continued to deliver growth, with revenue/income rising 33%/27%
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CSE Global Scaling up ahead of 4Q25F order wins
■ CSE braces for front-loaded costs ahead of FY26F AWS ramp but remains on track for multi-year growth, electrification poised as a key re-rating driver. ■ We expect 4Q25F order wins and new DC capacity position to lead a strong FY26F ramp-up. CSE targets M&A to grow communications in US, AU & EU. ■ Reiterate Add with an unchanged TP of S$1.15, based on 15x CY27F P/E.
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| UOB KAYHIAN | LIM & TAN |
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CSE Global (CSE SP) 3Q25 Revenue In Line, Well-Positioned for Huge Data Centre
Projects Highlights • CSE's 9M25 revenue of S$699m (+9% yoy) is in line at 76% of our 2025 estimate. CSE continues to see strength from its electrification business, with revenue growth of 40% yoy. • While orderbook eased to S$467.5m (-26% yoy) on the shift away from lowervalue municipal projects, we expect CSE to catch up on large-scale data centre project wins in the near term • Maintain BUY with an unchanged target price of S$1.22
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Jardine Matheson / JM (US$62.15, up US$1.10) published its Interim Management Statement for the third quarter of 2025. The performance of the Company’s portfolioin the third quarter was in line with expectations at the half-year. Profit guidance for the full-year remains unchanged. As previously announced, Lincoln Pan has joined the Company and will become CEO on 1 December 2025 succeeding John Witt. JM’s market cap stands at US$18.4bln and currently trades at 11x forward PE and 0.7x PB, with a dividend yield of 3.6%. Consensus target price stands at US$70.38, representing 13.2% upside from current share price. JM has done well on a year on year basis, and it’s segments have shown improvement. However, given the good share price performance, yield has declined and investors who are holding for the yield should switch to other higher yielding blue chips. Investors with a longer-term perspective can consider “Accumulating on weakness” for the continued recovery of their Asian-centric portfolio of investments. |
