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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Wee Hur Holdings Ltd Jumping in on Hong Kong's PBSA shortfall
■ Acute bed shortfall in HK's policy-backed PBSA market presents an opportunity for WHUR to rebuild its PBSA portfolio. ■ We estimate that every 2k beds added could boost PATMI by S$14m. Starvia by Y Suites/One Bedford Place will commence leasing in 2H26F/1H28F. ■ Reiterate Add. We believe WHUR is a beneficiary of Singapore’s construction upcycle as well as strong demand for PBWAs and PBSAs.
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Lum Chang Creations Mainboard transfer completes, order wins continue
■ LUCC has secured a S$32.9m contract for Teck Ghee Station, further extending its revenue visibility through FY29F. ■ It fulfilled all conditions under the in-principle approval for its transfer from Catalist to SGX Mainboard, with Mainboard trading to commence 16 Jul. ■ Reiterate Add, with a TP of S$0.64, based on an unchanged 17x FY27F P/E. Capital-market initiatives should enhance trading liquidity and investor reach.
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| UOB KAYHIAN | LIM & TAN |
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Singapore Airlines (SIA SP) Jun 26 Operating Data In Line; 1QFY27 Likely Around Breakeven Due To High Fuel Costs And Air India Drag
Highlights • Jun 26 operating data came in in line with our projections, with pax load and cargo load rising 4.1% and 5.1% yoy, respectively. • We now forecast SIA’s 1QFY27 bottom line to be around breakeven, reflecting higher fuel costs amid the US-Iran war and a major drag from Air India. • Renewed US-Iran crossfire has led to a rebound in fuel prices. Nevertheless, we remain hopeful for a rebound in SIA’s profitability in 2QFY27, driven by effective cost pass-throughs and SIA’s comfortable fuel hedging position. • Maintain HOLD on SIA with a slightly higher target price of S$6.76.
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CapitaLand Ascendas REIT / CLAR ($2.49, unchanged) is divesting Kim Chuan Telecommunications Complex at 38 Kim Chuan Road in Singapore, for a sale consideration of approximately S$200.4 million to an unrelated third party. The sale consideration is double the original purchase price of S$100.0 million at which CLAR acquired the property for in March 2005. It also represents a premium of approximately 32% to the independent market valuation of S$151.8 million as at 30 June 2026. At $2.49, CLAR is capitalized at $12.4bln and trades at 1.1x book, 6% dividend yield and 17x PE. We like the company’s ability to monetize lower yielding and more matured assets to recycle into higher yielding and faster growing ones. With 1 year consensus target price of $3.11 implying a potential upside of 25%, we maintain an Accumulate rating on CLAR as its dividend yield is also attractive at 6%. |
| LIM & TAN | MAYBANK SECURITIES |
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Lum Chang Creations / LCC (S$0.385, up 1ct) is pleased to announce that its wholly-owned subsidiary, Lum Chang Interior Pte. Ltd., has secured a new contract valued at approximately S$32.9 million, further strengthening the Group’s order book and reinforcing its long-term revenue visibility. Capitalized at S$254mln, Lum Chang Creations trades at a forward P/E of 10.6x, P/B of 7.6x and 6.5% dividend yield. LCC has achieved a major milestone and will be upgrading from the Catalist to the Mainboard today. The recent placement (through a mix of new and vendor shares) will be used for purposes including regional expansion, potential acquisitions and further entry into interior fit-out and additions and alterations projects. We maintain our Buy recommendation with a target price of $0.52.
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JustCo Holdings (JCO SP) Built to Scale APAC flex office platform with scalable model
JustCo is a flexible workspace platform with 50 centres across 10 gateway cities, serving c.35,000 workstations. We initiate coverage with a BUY and a target price of SGD1.02 based on 8.5x FY27E EV/Cash EBITDA, supported by visible earnings growth, improving occupancy and strong operating leverage. Key risks include occupancy volatility, lease cost mismatch, execution risk from expansion.
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