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PHILLIP SECURITIES |
MAYBANK SECURITIES |
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Phillip Singapore Monthly – Jun26 The Great AI Wealth Transfer
Singapore equities rebounded in May with a gain of 2.5%, bringing YTD26 gains to 8.4%. Expectations of an end to the Middle East conflict supported a rebound in transportation-related stocks. Conversely, energy names pulled back, and banks reached record highs amid expectations interest rates would remain elevated.
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Addvalue Technologies (ADDV SP) USD5.1m order wins: new customer obtained
New IDRS customer; retain SGD0.34 TP Addvalue said on 8 June it won USD5.1m of orders for its Inter-Satellite Data Relay System (IDRS) business, which is picking up strongly. It won USD15.2m of IDRS orders in 1H26, compared to USD4.2m in 1H25 and USD3.8m in 1H24. We similarly expect Advanced Digital Radio (ADRS) orders to pick up strongly due to the need for anti-drone solutions globally. Addvalue is also undertaking renovations to double its capacity to 200 units pa and is currently exploring a potential US listing of its IDRS business. Maintain BUY with a SGD0.34 TP, pegged to 30x FY27E price-to-sales, a 65% discount to global peers.
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| UOB KAYHIAN | LIM & TAN |
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Oil & Gas A Few Gems Amid Uncertain Industry Outlook
Highlights • Activity will still go on. In our view and at the very least, oil price forecasts have established a reasonable floor, which represents the only certainty from the US-Iran war, ie the gradual reopening and repairs of damaged production infrastructure. Petronas remains steadfast in pushing and expediting new projects to uphold the target of 2m boepd domestic production while accelerating exploration projects for long-term production.
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AiR Digital Solutions, the technology subsidiary of Singapore-listed global concrete innovation leader Pan-United Corporation Ltd ($1.47, down 0.01), has achieved ISO/IEC 27001:2022 certification for its AI-powered operations management platform. ISO/IEC 27001:2022 is an internationally recognized standard for managing information security risks. The certification underscores AiR Digital’s robust approach to cybersecurity and data privacy, including safeguards against threats such as cyberattacks, unauthorized access and data leaks. With the rise of AI and AI related stocks across the world, we believe that Pan United Corp’s ability to capitalize and monetize their AI software (Air Digital Solutions), investors have started to pay attention with valuations of Pan United at a higher than industry average of 17x forward PE and 3.6x price to book. With consensus 1 year forward target price of $1.60 implying about 10% upside potential, we maintain a HOLD recommendation on Pan United Corp with dividend yield of 3% and the company’s continued share buy-back program supporting its share price.
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| LIM & TAN | UOB KAYHIAN |
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Manulife US REIT ( US$0.053, unchanged) said that it has completed the sale of Figueroa, a 35-storey Class A office building in downtown Los Angeles, to an unrelated third-party purchaser, for a gross price of US$92.5 million. Net proceeds of ~US$82 million will be mainly used to repay the outstanding loan due in 2026 and for partial repayment of loans due in 2027. Manulife US REIT’s market cap stands at US$94mln and currently trades at 4.8x forward PE and 0.3x PB but does not pay dividend. Consensus target price stands at US$0.0615, representing 16% upside from current share price. Despite the cheap valuations, Manulife has not paid dividend and given market sentiment turning hawkish as a result of inflation fear and a strong job market, we continue to maintain a HOLD recommendation on Manulife US REIT.
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Banking Strong SGD A Reflection Of Resiliency; Manageable Negative Impact From Weakness In Rupiah And Rupee
Highlights • The strength of the Singapore dollar despite the geopolitical conflict in the Middle East is a timely reminder of Singapore’s strong fiscal standing. • DBS is more affected by weakness in the rupiah and rupee, which accounted for 7.4% of total income in 2025. For OCBC, its exposure to weakness in the rupiah is partially offset by the strength of the ringgit. • Maintain OVERWEIGHT. Our top pick is OCBC (BUY/Target: S$26.80) for its strategic shift to accelerate growth. We also like DBS (BUY/Target: S$65.20) for its attractive 2026 dividend yield of 5.1%.
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