|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
First REIT Proposed divestment of Indonesian assets
▪ First REIT proposed to divest eight hospitals and three non-hospital assets in Indonesia for S$471.5mn, with a separate put option for the remaining six hospitals at S$294.8mn. The purchaser of the eight hospitals is PT Siloam International Hospitals Tbk (Siloam).
|
Phillip 2Q26 Singapore Strategy What to do in a fog?
Review: Singapore equities ended a record ten consecutive months of gains with a 2.2% decline in March. 1Q26 was still a positive 5.1%. The market registered all-time highs on 23 February. The Iran war drove up the performance of sectors in defence spending, biofuels and capital markets (Figure 2). Banks managed to maintain gains even in March and outperformed during the quarter with their resilient dividends (Figure 1). REITs were pummelled as interest rate expectations dialled back from two cuts early this year to the possibility of rate hikes (Figure 3). Consumer is another segment of weakness as rising inflation squeezes disposable income (Figure 4).
|
|
PHILLIP SECURITIES |
PHILLIP SECURITIES |
|
Singapore Banking Monthly Singapore interest rates lowest in 45 months
▪ March’s 3M-SORA was down 5bps MoM to 1.09%, the lowest since July 2022, and fell by 153bps YoY. Singapore loan growth has continued to climb (Feb26: +6.3%). Banks are guiding low to mid-single digit. CASA rose 11% YoY and CASA ratio to deposits at 20% (Jan25: 19.8%), a tailwind for banks, lowering funding costs and cushioning NIM compression.
|
Yangzijiang Maritime Development Ltd Riding the shipping cycle
▪ YZJ Maritime captures the entire economic value in the lifecycle of a vessel. The Group earns at every stage, from newbuilding procurement margins to charter income during operation, to financing interest, to capital gains on exit, across tankers, gas carriers, bulkers, containerships, and OSVs. It has a portfolio fleet of 80+ vessels with up to 50 newbuilds in the pipeline.
|
| KGI SECURITIES | LIM & TAN |
|
Infinity Development Hldgs Co Ltd
Stickier than any adhesive Business model stickier than any adhesive. Infinity supplies consumable adhesives, primers and hardeners embedded in footwear production lines. Products must pass a dualapproval process by both global brands and OEMs, creating long qualification cycles, high switching costs and entrenched supplier mandates once approved. Valuation & Action: Based on our discounted cash flow (DCF) valuation, we initiate coverage on Infinity Development Holdings with an OUTPERFORM rating and a target price of S$0.62. Our DCF-based valuation utilises employs a WACC of 8.03% and a blended terminal value approach, derived based on a 1.5% terminal growth rate and a forward P/E multiple of 4.3x, reflecting a conservative risk assessment amid heightened macro uncertainty and near-term cost pressure across Asia.
|
Olam Group Limited ($0.86, down 0.5 cents) has announced that its wholly owned subsidiary, Olam Holdings Pte. Ltd., has entered into a conditional share purchase agreement with Wipro Networks Pte. Limited (a subsidiary of Wipro Limited) to sell its entire 100% stake in Mindsprint Pte. Ltd. This involves the sale of 200 million shares, representing full ownership of Mindsprint, a Singapore-incorporated provider of technology, cybersecurity, and digital solutions. Following completion, Olam will cease to have any interest in Mindsprint. Olam’s market cap stands at S$3.6bln and currently trades at 15.6x PE and 0.5x PB, Upon the successful sale, the entire proceeds of US$375mln (c.S$488mln;1.3 S cts) could be used to give out as special dividends. Given Olam will record a gain on disposal of c.$399.1mln, pro forma NTA will increase from c.$1.20 to c.$1.31. We await Olam’s conƟ nued disposal of ROG group and Olam Agri with proceeds being used to give out special dividend and pare off debt respectively. Olam trades at |
