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UOB KAYHIAN |
UOB KAYHIAN |
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Offshore & Marine A Mixed Year In 2025 With Some Turbulence Ahead
Highlights • The shipping sector’s strength in 2025 was in stark contrast to the offshore wind sector. • While day rates remain robust for all types of rigs, they have yet to rise to levels that would encourage new orders. • Top picks in the sector are ASL Marine and Marco Polo Marine. Maintain OVERWEIGHT.
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Hong Leong Asia (HLA SP) IPO For A High-growth Subsidiary With DC And AI Exposure
Highlights • CYD’s subsidiary filed for an IPO in Asia’s hottest market for new listings • MGP manufactures diesel engines and generators of varying sizes, with its largest products used by data centres as back-up power. • Maintain BUY with a higher SOTP-based target price of S$4.20 (from S$2.82), implying 33% upside.
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LIM & TAN |
LIM & TAN |
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Bloomberg reported that Jerome Powell has two more opportunities to adjust interest rates before his term as Federal Reserve chair ends — and he may not need them. After the Fed kept borrowing costs on hold Wednesday, Powell talked up a “clear improvement” in the US outlook and said the job market shows signs of steadying. It signals a cautious optimism: Fed officials delivered three cuts last fall, and see nothing in the latest data to suggest more are needed to prop up the economy. Futures markets expect no shift in rates before June. By then, Powell’s term as chair will have ended and a new one should be in place — likely opening another phase of President Donald Trump’s campaign for lower rates, which has upended the Fed over the past year. In a potential sign of what’s coming, the only two officials who voted for another cut this week were Governor Stephen Miran — on leave at the Fed from his post as a top Trump aide — and Governor Christopher Waller, one of four names on Trump’s shortlist of potential Powell successors. While the Fed didn’t cut rates this round and expectations are that they will hold steady before Jay Powell steps down in mid’26, we believe that the path for rates in the longer term should be down. Notwithstanding that we believe that DBS shares will continue to be well-bidded given its steady dividend guidance for the next 2 years (much a-kin to a bond), giving it a yield of more than 5%. We maintain an Accumulate rating especially on weakness for DBS shares.
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Mapletree Industrial Trust Management Ltd. ($2.11, unchanged), wishes to announce that MIT’s DPU for the Third Quarter Financial Year 2025/2026 from 1 October 2025 to 31 December 2025 (“3QFY25/26”) was 3.17 cents. MIT’s market cap stands at S$6.0bln and currently trades at 16.4x forward PE and 1.2x PB, with a dividend yield of 6.0%. Consensus target price stands at S$$2.21, representing 4.7% upside from current share price. MIT is backed by a diversified asset base including date centres, business parks, hi-tech industrial buildings and flatted factories. Valuations and yields remain undemanding relative to historical averages and as such, we continue to recommend an Accumulate on weakness rating on MIT |
| MAYBANK SECURITIES | DBS GROUP RESEARCH |
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OUE REIT (OUEREIT SP) Stabilised performance with lower finance cost
Lift TP to SGD0.45 on better debt/hospitality metrics OUEREIT reported FY25 DPU of SGD2.23c, up +8.3% YoY. The strong growth was underpinned by a 17.6% YoY saving in finance expense and resilient rental reversion. Debt metrics strengthened, with declines in both gearing and cost of debt following debt repayment. We raise our FY26/27E DPU by 2% on an improving hospitality segment contribution and a lower cost of equity. We lift our DDM-based TP by 18% to SGD0.45, and maintain BUY.
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Mapletree Industrial Trust
A Balancing Act Headline 9MFY26 DPUs tracking in line with estimates Reversions in Singapore (+7%) and US positive (+3%); backfilling of vacated DC space in US a positive but ongoing vacates in coming quarters could still weigh on revenues in the coming quarters Opportunity to tap debt for acquisitions in Japan, Korea and potentially sponsor’s pipeline in USA for growth will pivot DPU profile back to growth BUY call, TP maintained at SGD 2.45
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