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UOB KAYHIAN |
MAYBANK SECURITIES |
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Strategy Kevin Warsh ‒ The Taskforce Man
Highlights • The Fed could resume QT in 2027. We see QT with rate hikes as disruptive to the stock market but QT without rate hikes should be benign. We see QT in 2027 resembling QT2B, which is not accompanied by rate hikes. • QT is positive for banks because it lifts bond yields and steepens the yield curve. Unfortunately, non-financial sectors tend to underperform due to the massive rally for banks. Stock-specific catalysts, such as business transformation and asset monetisation, are important, as can be seen from Keppel and Sembcorp Industries during QT2A and SingTel during QT2B.
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Addvalue Technologies (ADDV SP) First share buy-back since 2010
Share buy-back signals confidence on outlook Addvalue repurchased 1.541m shares at SGD0.137 on the 15 Jul 2026. This is the first time since shareholders approved a share buyback (SBB) mandate on 28 Jul 2010. We believe this is a strong signal that management is confident of its outlook and a further SBB could further strengthen confidence. We believe the recent pullback in Addvalue’s share price presents an attractive opportunity for investors to accumulate the stock. We expect more Advanced Digital Radio System (ADRS) orders in coming months. Retain BUY with a SGD0.34 TP, pegged to 30x FY27E priceto-sales ratio.
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| MAYBANK SECURITIES | CGS INTERNATIONAL |
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Parkway Life REIT (PREIT SP) Building the next growth pillar in France
Europe the next growth engine Management reiterated its long-term strategy to diversify beyond Singapore and Japan, with France expected to become an increasingly important acquisition market. While Singapore is targeted to remain c.60% of AUM, future growth will come from France, alongside selective acquisitions in Singapore (including Mount Elizabeth Novena) and potential new markets. Maintain BUY with an increased DDM-based TP of SGD4.88.
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United Overseas Bank Stable earnings delivery reflected in its price
■ We expect UOB to report 2Q26F core PATMI of S$1.41bn (+5.2% yoy, -1.9% qoq) on the back of stable banking operations qoq. ■ However, divestments of various real estate assets in May 26 likely generated one-off gains that bolstered otherwise flat qoq income in 2Q26F. ■ Downgrade to Hold following a c.15.1% rise in share price since Jun, with an unchanged GGM-based (LTG: 2.0%, ROE: 12.5%) TP of S$42.60.
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| LIM & TAN | LIM & TAN |
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Lum Chang Creations / LCC (S$0.375, down 1ct) recently achieved a major milestone by upgrading from the Catalist to the Mainboard on 16’July 26. This was done through a placement of new and vendor shares to insti tuti onal and high-net-worth investors at S$0.759/share (S$0.38/share bonus-adjusted). The completion of a 1-for-1 bonus issue has doubled its share capital, improving trading liquidity with a broader shareholder base. Capitalized at S$248mln, Lum Chang Creations trades at a forward P/E of 10.3x, P/B of 7.4x and 6.7% dividend yield. LCC reported a positi ve profit guidance and new contract wins, reinforcing its long-term revenue visibility and resilient industry outlook. Recent corporate actions undertaken by the company include a 1-for-1 bonus issue, placement to institutional investors, and an upgrade to the Mainboard. Maintain BUY with an unchanged target price of S$0.52, pegged to 12.7x FY27F P/E.
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Zixin Group ($0.032, unchanged) delivered a strong set of results for FY2026, marking the first full year of operations for its closed-loop circular economy sweet potato industrial value chain in Liancheng County, Fujian Province. The integrated model, which spans cultivation, processing and recycling, has reached a meaningful stage of commercialisation, providing the foundati on for the Group’s next phase of expansion. Building on its stable operati ons in Liancheng, the Group accelerated investments into new regions including Lingao County in Hainan Province, Quanzhou City in Fujian Province and Singapore. While these operations remain in their early stages and require upfront investment, management views them as critical to supporting long-term growth and strengthening the Group’s nationwide and international presence. Zixin’s market cap stands at S$68.6mln and currently trades at 4.4x PE and 0.5x PB, and does not pay dividend. Consensus target price stands at $0.065, representing 102% upside to current share price. Zixin is supported by its undemanding valuati on and favourable policy backdrop. China’s continued emphasis on food security aligns closely with Zixin’s integrated sweet potato value chain, positioning Zixin to benefit from long-term government support for domestic agricultural production and supply chain resilience. With its Liancheng operati ons now firmly established, management has shifted its focus towards expanding into Hainan, Quanzhou and Singapore. While these investments have weighed on near-term margins, they lay the groundwork for the next phase of growth. As these new operations mature and scale over the coming years, we expect profitability to accelerate meaningfully. As such, we maintain our BUY recommendation on Zixin. |
