ANALYSTS SAY: Buy, Sell, Hold (20 Jan)

CGS INTERNATIONAL

UOB KAYHIAN

Fuxing China Group Limited

Integrated zipper manufacturer

■ We visited Fuxing China Group Ltd’s (Fuxing) facilities in China, Jinjiang City, Fujian Province over 12-13 Jan 2026.

■ With expectations of renewed investor interest in small caps on SGX, Fuxing has called off its Nasdaq-listing plan.

■ On 12 Nov 2025, Fuxing completed a placement of 3m new shares at S$0.415 apiece.

■ As at 15 Jan 2026, Fuxing trades at an 89% discount to its FY24 book value.

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Construction

Finding Alpha As Construction Valuations Re-rate

Highlights

• Singapore construction sector is set to outperform, with strong construction demand and orderbook visibility of 2-4 years.

• Maintain OVERWEIGHT. Top picks are CENT (Target: S$1.90), RGL (Target: S$0.56) and TWC (Target: S$1.11).

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OCBC INVESTMENT RESEARCH

LIM & TAN

Singapore Small/Mid-Cap Equities: Key Takeaways (2026 Outlook)

Overall view

• Singapore small- and mid-cap (SMID) stocks are expected to re-rate positively in 2026, supported by lower interest rates, resilient global growth, and local equity market reforms.

Macro & market drivers

• Falling interest rates are supportive, especially for interest-rate sensitive sectors such as S-REITs, which make up a large portion of the SGN50 Index.

• Singapore SMIDs generally have diversified overseas revenue exposure, making continued global economic growth an important performance driver.

• Ongoing equity market reforms (EQDP fund deployment, improved research coverage, stronger shareholder engagement) are expected to boost liquidity and investor interest.

• A proposed Nasdaq–Singapore dual-listing bridge (mid-2026) could attract new-economy companies and revitalise IPO activity.

Market performance & valuation

• Year-to-date performance of the FTSE ST Small Cap Index is broadly in line with the STI.

• Some SGN50 constituents appear fully valued due to pre-emptive positioning ahead of EQDP fund deployment, prompting investors to look beyond benchmark names.

Stock screening insights

1. Fundamentals screen

   • Focused on valuation, dividends and profitability (P/E, P/B, dividend yield, ROE).

   • Identified several stocks with undemanding valuations and solid fundamentals, including names across agriculture, logistics, REITs and industrials.

2. Privatisation screen

   • Looked for companies with low valuations, low liquidity/free float, strong balance sheets and high ownership concentration.

   • Highlighted potential privatisation candidates but cautioned that privatisation outcomes are uncertain and should not be the sole investment thesis.

Notable overlap

• Ho Bee Land, China Everbright Water, Samudera Shipping and Indofood Agri Resources met criteria in both screens.

• These stocks may merit closer monitoring due to a combination of fundamental strength and strategic optionality, even though they are not under formal research coverage.

Bottom line

• While near-term valuations in some popular SMIDs look stretched, select opportunities remain outside the SGN50.

• Investors should adopt a selective, fundamentals-driven approach, rather than chasing themes or privatisation speculation alone.

Yangzijiang Maritime Development Ltd. (S$0.62, up 0.5 cts), a one-stop maritime financial solutions provider, is pleased to announce that the Company intends to convene an Extraordinary General Meeti ng (“EGM”) to seek shareholders’ approval for a share buy-back mandate (the “Share Buy-Back Mandate”), in accordance with applicable requirements under the SGX-ST Listing Rules and the Companies Act 1967 of Singapore.

Yangzijiang Maritime is capitalized at S$2.1bln at trade at 13.0x annualized P/E and 1.0x P/B. Share buybacks are another way to provide share price support and underline mgmt’s confidence in company fundamentals. The company intends to recommend dividends of not less than 40.0% of its net profit after tax attributable to its Shareholders in respect of FY2025.

Yangzijiang Maritime aims to harness opportunities across evolving maritime cycles and build a focused, high quality maritime investment platform. There is currently no analyst coverage on the counter. Given the robust performances of YZJ Shipbuilding as well as YZJ Financial, we would closely monitor YZJ Maritime’s fundamentals.

Mapletree Investments and Mapletree Pan Asia Commercial Trust / MPACT (S$1.47, unchanged) have appointed SP Group (“SP”) to design, build and operate a new Distributed District Cooling (“DDC”) system as part of Mapletree’s commitment to achieve Net Zero by 2050. The project will see one of Singapore’s largest brownfield district cooling deployments, supporting Mapletree’s plans to rejuvenate the HarbourFront Precinct and enhance building energy efficiency across the precinct.

MPACT’s market cap stands at S$7.8bln and currently trades at 11.2x forward PE and 0.8x PB, with a dividend yield of 5.4%. Consensus target price stands at $1.55, representing 5.4% upside to current share price. We have a HOLD

recommendation MPACT.