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UOB KAYHIAN |
UOB KAYHIAN |
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REITs Data Centre REITs: No Let-up In Innovation To Advance AI
Highlights • Advances in agentic AI are expected to fuel proliferation of AI applications and a surge in AI inference workload. Data centre capacity is projected to almost triple to 219GW by 2030, of which 156GW or 71% caters to AI workload. • The impending listing of OpenAI and Anthropic would intensify attention on data centre REITs. NTTDCR (Target: US$1.42) offers the highest FY27 DPU yield of 8.6%. KDCREIT (Target: S$2.82) has a resilient Singapore-centric portfolio and is well supported by sponsor Keppel. DCREIT (Target: US$0.93) is expected to register strong DPU growth of 17% in 2027.
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REITs Bargain Hunting Amidst Fragile Peace Negotiations
Highlights • Ongoing peace negotiations between US and Iran and between Russia and Ukraine, if continued, could lead to reducing hostilities and healing in the energy supply chain, thus easing concerns over higher inflation. • Maintain OVERWEIGHT. Accumulate logistics REIT FLT (Target: S$1.22) and hospitality REIT CLAS (Target: S$1.42) as they were most affected by the Middle East conflict. Fundamentally, we remain attracted to CICT (Target: S$2.95), MPACT (Target: S$1.84) and NTTDCR (Target: US$1.42).
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UOB KAYHIAN |
MAYBANK SECURITIES |
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Plantation Recovery in Production and Exports
Highlights • MPOB’s Mar 26 data showed palm oil inventory declining to 2.27m tonnes, driven by a surge in exports which more than offset the increase in production. • Elevated CPO prices are expected to support planters’ earnings during the low harvest season in 1Q26, while most remain insulated from near-term fertiliser cost pressures. • Maintain OVERWEIGHT. Sector picks: SD Guthrie (BUY/Target: RM6.90) and Hap Seng Plantations (BUY/Target: RM2.65).
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Sing Investments & Finance (SIF SP) Resilient in uncertain times
Initiate coverage with BUY and TP of SGD2.11 We initiate coverage of Sing Investments & Finance (SIF) with a BUY and TP of SGD2.11, based on 0.95x FY26E P/B. We believe SIF has significant upside given its resilient NIMs and a stable funding base driven by its deposit-funded model, underpinned by its niche SME lending franchise. Healthy asset quality supports its undervaluation. Risks to our call include: a) credit risk given SIF’s Singapore-only exposure; b) interest rate risk from declining benchmark interest rates; and c) liquidity and funding risk.
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| MAYBANK SECURITIES | LIM & TAN |
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Singapore Telecommunications (ST SP) Medium-term catalysts delayed a bit (not derailed)
Volatility opens up opportunity to accumulate Singtel’s story looks delayed, not derailed. In India, Bharti’s tariff hike may be delayed by around 6 months, but rational competition, low mobile spend-to-GDP, and a potential Jio IPO re-rating catalyst keep the mediumterm thesis intact. Outside India, Optus price hikes, fast-growing data centres, and broadly resilient associates provide support, while Singapore consolidation appears postponed rather than canceled. Even if Bharti stake sales pause, Singtel could tap its SGD2.8b Gulf Development stake. With a 15% earnings CAGR, 5–6% capital returns, and a 24% holdco discount, SDS-driven volatility looks like an accumulation opportunity.
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We summarized Overseas Education Limited’s / OEL ($0.17, up 1 cent) annual report. OEL delivered a year of strong academic distinction and global recognition in Academic Year 2025, despite facing a challenging operating environment financially. The performance of its flagship institution, Overseas Family School (OFS), reinforced its reputation as a leading international school that combines academic excellence with inclusivity and global citizenship. OEL’s market cap stands at S$70mln and currently trades at 170x PE and 0.5x PB, with a dividend yield of 4.1%. There are currently no analysts on Bloomberg covering OEL. |
