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UOB KAYHIAN |
LIM & TAN |
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Mapletree Industrial Trust (MINT SP) 3QFY26: Persistent Weakness From North America
Highlights • We observed weakness for the North America portfolio with occupancy easing 0.3ppt qoq to 87.5% in 3QFY26. The average rental rate also slipped 1.2% yoy to US$2.45psf per month. • Existing tenants at 250 Williams Street in Atlanta and 7337 Trade Street in San Diego are unlikely to renew when their leases expire in February and May respectively. They accounted for 3.7% of MINT’s gross rental income. • Maintain HOLD and target price of S$2.22.
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Tiong Woon Corp’s / TWC (S$0.995, up 3 cents) heavy capex over the past few years was undertaken to build capabiliti es precisely for this moment: Singapore’s multi -year constructi on upcycle, which is driven by both public and private sector demand, and higher-value overseas projects where extraordinary earnings start to materialize. This includes contributions from the NEOM project in Saudi Arabia, petrochemical projects in India, and the ability to leverage Mammoet’s regional relationships following the acquisition of its assets in Thailand. With operating leverage amidst ti ghtening utilisation, we believe TWC remains undervalued and is still early in the current construction cycle. TWC’s market cap stands at S$229.9mln and currently trades at 9.2x forward PE and 0.7x PB, with a dividend yield of 1.75%. If we ascribe an undemanding 12x PE (which we think is fair given construction majors BRC Asia/Centurion also trades at around 12x forward PE and Pan United/Hong Leong Asia trades at around 18x PE), TWC should trade at S$1.30 given its status as a crane major, which represents a 30% upside to target price. This valuation gap will likely be narrowed via better earnings as we now see heavier cranes (which carries higher margins) being utilized for both local infrastructure (data centres, etc) and overseas projects, which were not present previously. We thus maintain a BUY recommendation on TWC. |
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LIM & TAN |
DBS GROUP RESEARCH |
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CapitaLand Ascott Trust / CLAS ($0.965, unchanged) achieved an 11% year-on-year (y-o-y) increase in income available for distribution to S$256.7 million for the financial year ended 31 December 2025 (FY 2025), as it marks its 20th anniversary this year. The increase was driven by higher gross profit, underpinned by stronger operating performance and portfolio reconsti tution, and higher non-periodic items. At 96.5 cents, CLAS is capitalized at $3.7bln and trades at a div yield of 6.3% and 0.8x price to book. CLAS has maintained stable 2H25 DPUs of 3.58 cts (2H24: 3.55 cts), supported by its diversif ed portfolio of lodging assets across 16 countries. Locally in Singapore, demand for lodging is expected to be supported by a vibrant calendar of events in 2026. We continue to like the recycling initiatives from lower yielding matured assets to faster growing growth-oriented assets. Based on Bloomberg consensus 1 year target price of $1.11, upside potenti al is 15.0%. We maintain “Accumulate” on CLAS given its still undemanding valuations, stable distributions and ability to benefit from resurgence of global tourism.
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Regional Energy
2026 Outlook – can’t look away • Geopolitics, potential market disruptions add upside risk to oil plays in an otherwise muted environment • Energy plays also offer valuable hedging potential for investor portfolios amid the AI hype cycle • However, this is not a high growth space; for alpha, we look at small mid cap picks in niche segments like Nam Cheong, Harbin Electric, AKR Corporindo and Pertamina Geothermal Energy
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| DBS GROUP RESEARCH | DBS GROUP RESEARCH |
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Singapore Banks A turning point in NIM downtrend
• NIM decline abating; OCBC and UOB likely to report q/q NIM improvements in 4Q25 • Non-interest income expected to soften following a strong 3Q25, attributable to seasonal impacts • Singapore banks saw 5%-10% gains in Jan 26; we see legs in the rally as dividends and stable capital returns in SGD remain attractive • Maintain BUY on OCBC with higher TP of SGD23, representing 1.5x FY27F P/BV
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GuocoLand Ltd
Investment Objective Undemanding valuations with multiple upside catalysts Investment Overview Established property developer with growing investment portfolio. GuocoLand is a premier regional property company, distinguished by its superior branding and high-end residential products. Beyond development, the group is also focusing on its property investment business to strengthen its recurring income base and grow dividends on a sustainable basis, with its investment property portfolio valued at c.SGD7bn.
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