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UOB KAYHIAN |
UOB KAYHIAN |
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Food Empire Holdings (FEH SP) Multiple Tailwinds And Strong Positive Signal From Buyback
Highlights • An improvement in the Russia-Ukraine war deal could lift sentiment for FEH, especially given the scarcity of Russia-Ukraine proxies in SGX. • The recent resumption of aggressive share buybacks since 4Q25 indicates strong positive signals from management. • Maintain BUY with an unchanged target price of S$3.00. FEH trades at 17x 2026F PE, a deep 32% discount to regional peers’ average of 25x.
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Lenovo Group (992 HK) 3Q26 Results Preview: PC Sales Remain Solid, But Growth Visibility Remains Low Amid Component Price Hikes
Highlights • We expect Lenovo to report an 8.2% yoy growth in adjusted net profit in 3QFY26, with growth driven by solid PC sales and improvements in ISG profitability. • The PC market’s pulled-forward demand should be sustainable throughout the March quarter, but as memory prices continues to drive ASP hikes, we expect shipments to face more pressure going forward. • Maintain HOLD and trim target price to HK$9.70 as we trim our estimates.
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LIM & TAN |
LIM & TAN |
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Centurion Accommodation REIT (S$1.14, down 1 ct) is pleased to announce the completion of the acquisition of EPIISOD Macquarie Park, a newly developed 732-bed Purpose-Built Student Accommodation (“PBSA”) asset located in Sydney, Australia, pursuant to a Forward Purchase Agreement and the issuance of the certificate of Practical Completion. CAREIT is capitalized at S$2.0bln, trades at 1.3x P/B with a dividend yield of 5.8%. Consensus TP of S$1.25 for CAREIT represents a 9.6% potential upside. Sponsor Centurion Corp is capitalized at S$1.2bln and trades at 10.2x forward P/E and 0.9x P/B with a dividend yield of 2.9%. Consensus TP of S$1.78 for Centurion Corp represents a 29.9% potential upside. We maintain “Accumulate” on Centurion Corp.
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GKE Corporation Limited (S$0.091, unchanged) reported a weaker set of results for the six months ended 30 November 2025 (1H FY26), with modest top-line growth but a sharp decline in profitability, reflecting operational disruptions, start-up costs from new expansions, and the absence of one-off gains recorded a year earlier. Revenue rose 5.3% year-on-year to S$66.5 million, supported mainly by the newly introduced telecommunications retail and distribution business and a small increase in agriculture sales. However, this was more than offset at the bottom line by lower margins, weaker contributions from core segments, and higher operating costs, resulting in net profit falling 57.5% year-on-year to S$1.9 million and EPS declining to 0.24 Singapore cents. GKE’s market cap stands at S$81.2mln and currently trades at 21.6x forward PE and 0.7x PB, with a dividend yield of 4.4% yield. There are currently no analysts covering GKE. Based on the results, we expect a negative knee jerk reaction to share price today. However, catalysts for GKE remains intact such as the spinning off its China infrastructural materials & services business and the ongoing business development discussions in Dubai which will give GKE entry into the Middle East logistics market. |
| MAYBANK SECURITIES | DBS GROUP RESEARCH |
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Soon Hock Enterprise (SHOCK SP) Industrial real estate specialist
Leader with strong track record; initiate with BUY We like Soon Hock Group for its established strong track record in industrial property development and a healthy project pipeline that underpins near-to-medium term profitability. As a result, we initiate coverage on SHOCK with a BUY and an RNAV-based TP of SGD0.75. Our valuation places SHOCK at 5.0x FY26E P/E and a 30% discount to RNAV. Risks to our call include: a) dependence on the Singapore industrial property market; b) debt financing and interest rate volatility; and c) difficulties in collecting progress payments
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Singapore Aviation Aviation tailwinds intact, upside lies upstream
• Constructive sector stance underpinned by firm passenger and air cargo volume growth into 2026 • Passenger yield pressure is expected to linger but ease, while rising traffic volumes support aviation service providers’ earnings • Supply constraints are progressively abating but remain entrenched, limiting near-term fleet renewal and sustaining MRO demand • Still prefer upstream names at this juncture; STE and SATS are our top picks; downgrade SIAEC to HOLD
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