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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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ESR-REIT 1Q26: Core earnings stabilising
■ ESR REIT reported 1Q26 gross revenue/NPI of S$110.1m/S$80.6m, down 0.4%/2.3% yoy, broadly in line at 27%/27% of our FY26F forecasts. ■ Management guides for moderation in rental reversions to single-digit levels in FY26-27F, from 9.2% in 1Q26. ■ Retain Add on attractive FY26F DPU yield of 8.7%. Our DDM-based TP stays at S$3.43 (COE: 7.95%).
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Mapletree Pan Asia Commercial Trust Still challenging overseas
■ 4Q/FY26 DPU of 1.90/7.97 Scts in line, at 23.7%/99.5% of our FY26 forecast ■ VivoCity outperforms with a +14.1% rent reversion in FY26 while overseas portfolio continues to be a drag ■ Maintain Add rating with an unchanged TP of S$1.52
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DBS GROUP RESEARCH |
PHILLIP SECURITIES |
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SG Semiconductor
More than meets the AI • AI and memory tailwinds accelerating, broadening the semiconductor upcycle • Valuation catch‑up remains in play despite recent outperformance • Preference order: UMS > AEM > Frencken, based on growth and risk‑reward • Maintain BUY across all three, with higher TPs: UMS (TP SGD 2.92, earnings + 9-11%), AEM leads (TP SGD 8.90, earnings +42-56%), Frencken’s TP raised to SGD 3.22 with earnings unchanged
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First REIT Portfolio restructuring in progress
▪ 1Q26 DPU fell 13.8% YoY to 0.50 Singapore cents, coming in below expectations at just 22% of our FY26e forecast. The decline was mainly driven by weaker IDR and JPY against SGD, as well as the divestment of Imperial Aryaduta Hotel & Country Club. Excluding the divestment, revenue would still have declined 6.8% on a like-for-like basis
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| UOB KAYHIAN | LIM & TAN |
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Aztech Global (AZTECH SP) 1Q26: Strong Start With 54% yoy Revenue Growth With New Customers Gaining Traction; Upgrade To BUY With 128% Higher Target Price
Highlights • 1Q26 earnings of S$4m (+167% yoy) is in line with our expectation, with 1Q being the seasonally weakest quarter. • Revenue grew 54% yoy in 1Q26 due to increased demand for IoT devices and data communication products from existing and new customers. Aztech has secured six new project orders and added two new customers. • Upgrade to BUY with a 128% higher target price of S$1.32. Aztech is attractively priced at a 52% discount of 13x 2027F PE vs its peers’ 27x.
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The Business Times reported that in late October 2024, Hongkong Land (US$7.89, up 5 cents) unveiled a new strategy to double underlying profit before interest and tax, double dividend per share, recycle capital of up to US$10 billion and grow assets under management (AUM) to US$100 billion with active participation by third-party capital by 2035. The group has since been executing its strategy. Among various moves, it sold its property development business in Singapore and Malaysia, MCL Land, to Sunway Group.
Hongkong Land’s market cap stands at US$17.0bln and currently trades at 30.8x forward PE and 0.55x PB, with a dividend yield of 3.2%. Consensus target price stands at US$10.07, representing 27.6% upside from current share price. Suntec REIT’s market cap stands at S$4.3bln and currently trades at 20.7x forward PE and 0.7x PB, with a dividend yield of 5.3%. We have an Accumulate rating on both Hong Kong Land and Suntec REIT as we believe Hong Kong Land would be able to reap synergies and value add to Suntec REIT’s portfolio of assets and bring about a re-rating of |
