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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Lendlease REIT Singapore retail portfolio fundamentals sound
• No financials were provided for 3Q26. Retail rental reversion for YTD renewed leases increased 12.2%. Portfolio occupancy stood at 95.3% (+0.4 ppts QoQ). Milan office Buildings 1 and 2 had CPI-linked rental uplift of 1.5% from Apr26. We expect retail rental reversion to remain in the low-double-digit range into 4Q26
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Singapore Airlines Weighed down by associates
• 2H26/FY26 PATMI declined 53.6%/57.4% YoY to S$945mn/S$1,184mn, forming 97%/78% of our FY26e estimates. Associate losses weighed on earnings, with full-year Air India losses at S$828.5mn.
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PHILLIP SECURITIES |
CGS INTERNATIONAL |
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ST Engineering Ltd Long runway for growth
▪ 1Q26 revenue was within expectations at 24% of our FY26e forecast. Revenue grew 15% YoY (excluding divested LeeBoy). The update mentioned that 1Q26 net profit exceeded 15% YoY, but no other details were provided. ST Engineering is on track to meet its 2025- 29 target of growing earnings 5% points faster than revenue.
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Frencken Group Ltd Upgrade to Add driven by semicon recovery
■ Frencken’s 1Q26 results were below expectations, with revenue at 22% of our/Bloomberg consensus’ FY26F forecasts, and net profit at 19%/18%. ■ However, as management expects stronger 2H26F revenue driven by higher-margin Asia operations, we retain our FY26F forecasts. ■ We upgrade from Hold to Add, with a higher TP of S$3.25, as Frencken guides for stronger FY27-28F outlook driven by the semiconductor segment
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| CGS INTERNATIONAL | LIM & TAN |
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Ever Glory United Holdings Building up to a billion
■ EGUH has secured S$230m in new contracts, lifting its order book closer to S$1bn; we expect meaningful earnings contribution from FY27F onwards. ■ We expect further order win momentum from public projects in 2H26F; successful bids could act as near-term re-rating catalysts, in our view. ■ Following a bonus share issue ex-date on 29 Apr 26, our TP is adjusted to S$0.90 from S$1.13. Reiterate Add, with our forecasts and thesis intact.
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Hongkong Land (7.96, down 3 cents) reported a constructive start to FY2026, with management highlighting improving operating momentum across its key Hong Kong and Singapore commercial portfolios alongside continued execution of its long-term “Strategic Vision 2035” transformation plan. The Group’s underlying profit for 1Q26 rose 5% YoY, mainly driven by lower financing costs, although contributions from Singapore declined following the divestment of Marina Bay Financial Centre Tower 3 ahead of the establishment of its new private fund platform. HKL’s market cap stands at US$18.3bln and currently trades at 13.7x PE and 0.56x PB, with a dividend yield of 3.1%. Consensus target price stands at S$10.24, representing 28.6% upside from current share price. HKL continues on it’s strategy to monetize assets and grow it’s fund management capabilities, which we continue to see as re-rating catalysts. As valuations are undemanding, we continue to recommend an Accumulate rating on Hongkong Land. |
