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CGS INTERNATIONAL |
UOB KAYHIAN |
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Constrn & Material - Overall Sharing the pain of higher fuel costs
■ Prolonged, elevated oil prices could trigger renegotiations or support discussions, even for fixed price contracts, in our view. ■ Based on our sensitivity analysis, a 5% increase in raw material costs (assuming no pass-through) could impact FY26F NPM by 0.1-2.4% pts. ■ We maintain our Overweight sector call. Top picks are BRC, TWC and SOIL.
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REITs S-REITs Monthly Update (Mar 26)
Highlights • S-REITs would be active in asset recycling in 2026, supported by depressed domestic interest rates. The sector is defensive and provides an attractive yield spread, 0.5SD above the long-term mean. • Maintain OVERWEIGHT. BUY blue-chips CICT (Target: S$2.95), FLT (Target: S$1.22), MPACT (Target: S$1.84) and NTTDCR (Target: US$1.42).
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UOB KAYHIAN |
MAYBANK SECURITIES |
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United Hampshire US REIT (UHU SP) Gen Z Drives Retail Renaissance
Highlights • Retail properties are experiencing a new renaissance due to historical low vacancy, while Gen Z is flocking back for experiential interactions at malls. • UHU will benefit from full-year contributions from the acquisitions of Dover Marketplace and Wallingford Fair in 2026. The new 53,000sf Dick’s Sporting Goods store opened at Hudson Valley Plaza in Mar 26. • UHU trades at an attractive 2026 distribution yield of 9.8% (Kimco Realty: 4.7% and Regency Centers: 4.0%). Maintain BUY. Target price: US$0.72.
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Regional Plantations Indonesia’s B50 conundrum
Potential methanol shortage may thwart B50 plan Amidst disruption to the oils supply and narrowed POGO spread, ID is pushing ahead with B50 effective 1 July. While supportive of CPO price, the higher mandate also raises the question as to whether biodiesel producers will be able to source sufficient methanol, critical for their production, as the ME is a key supplier. While staying NEUTRAL on the 12M view, we advocate a short term trading strategy given ongoing geopolitical tensions. While our preferred BUYs remain with SDG and SOP, we now add GENP to the list which has been a laggard.
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| LIM & TAN | LIM & TAN |
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Reclaims Global Limited (S$0.215, unchanged) is pleased to announce an improved set of financial results for the full year ended 31 January 2026 (“FY2026”) as compared to full year ended 31 January 2025 (“FY2025”). Reclaims Global’s market cap stands at S$65mln and trades at a P/E of 9.5x, P/B of 1.4x with a dividend yield of 5.8%. Reclaims remains a beneficiary of robust demand for excavation services, which includes demolition works, site clearance, reshaping and backfilling. Total full year dividends of 1.25 cts (Final 0.5ct + special 0.5ct: 1ct plus interim: 0.25cts on a bonus 1 for 1 adjusted basis) represents an attractive 5.8% yield. We remain relatively constructive on Reclaims Global given the positive Singapore construction demand over the next few years as well as backed by a strong net cash position and nice dividend yield. Bloomberg consensus 1 year target price is bandied about the 28-30 cents level.
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CDL’s market cap stands at S$7.3bln and currently trades at 18x forward PE and 0.8x PB, with a dividend yield of 3%. Consensus target price stands at S$10.28, representing 25.2% upside from current share price. Since our last “accumulate on weakness” call, the share price has declined meaningfully due to geopolitical tensions. We believe fundamentals remain intact, and the pullback presents a more attractive entry point. As such, we upgrade our rating to Accumulate on City Developments Limited. |
