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UOB KAYHIAN |
UOB KAYHIAN |
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UI Boustead REIT (UIBREIT SP) Expansion In Aerospace Lengthens Portfolio WALE
Highlights • UIBREIT has taken up a 51% stake in the development of a build-to-suit integrated aerospace facility at Seletar Aerospace Park. Its exposure to the automotive, aerospace & avionics sector has expanded 3ppt to 22% of gross rental income. The project provides an attractive yield on cost of 8.6%. UIBREIT has the option to acquire the remaining 49% after the completion. • Together with UIB Konan Phase 3, the two development projects are expected to contribute earnings of S$3.4m in FY29. • UIBREIT provides an attractive DPU yield of 8.8% for FY27 and 8.7% for FY28 (CLAR: 6.1%, AAREIT: 6.3%). Our target price of S$1.17 is based on DDM (cost of equity: 7.25%, terminal growth: 1.2%). Maintain BUY.
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Lenovo Group (992 HK) 4QFY26: Strong Beat Driven By AI Momentum And Record ISG Profitability
Highlights • Lenovo’s 4QFY26 revenue growth was above expectations across all three segments, with ISG’s operating margins a solid beat as well. Net profit surged 128% yoy to Rmb559m, which is well above our/market’s expectations. • Lenovo will face ongoing cost pressure from rising memory costs, but ASP hikes, premiumisation and cost controls should be able to mitigate most of the impact. Profitability in the coming quarters will be driven by the significant recovery in the ISG business. • Upgrade to BUY as we see that Lenovo has successfully transformed into a major AI beneficiary. Raise target price to HK$20.20.
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LIM & TAN |
LIM & TAN |
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Mapletree Industrial Trust / MIT ($1.95, unchanged) has entered into a Purchase and Sale Agreement for the proposed divestment (the “Proposed Divestment”) of 2000 Kubach Road, Philadelphia, Pennsylvania (the “Property”) located in the United States of America (the “United States”) to a non-interested third-party purchaser at a proposed sale price of US$14.5 million (the “Sale Price”) on 22 May 2026 (Eastern Standard Time). MIT’s market cap stands at S$5.5bln and trades at 16x forward PE and 1.1x PB, with a dividend yield of 6.5%. Consensus target price stands at S$$2.04, representing 4.6% upside from current share price. We maintain HOLD on MIT.
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Skylink Hldgs (S$0.265, up 1 cent) announced a strong performance of its inaugural results for the full year ended 31 March 2026 (“FY2026”), following its successful reverse takeover (“RTO”) of Sincap Group Limited on 15 September 2025. Revenue growth of 34.1% to S$35.36 million in FY2026 underscores the strong momentum and scalability of its business model: Revenue growth in FY2026 was driven mainly by contributions from the Group’s Commercial Vehicle Leasing and Engineering businesses. Skylink’s market cap stands at S$55.2mln and currently trades at 12.5x forward PE, with a dividend yield of 2.1%. Consensus target price stands at S$0.36, representing 35.8% upside from current share price. Skylink’s business segments operates in an ecosystem which supports scalable fleet expansion, operational synergies and defensive exposure to essential transport infrastructure demand. Owning one of the largest commercial vehicle leasing fleets in Singapore, Skylink is thus well-positioned to benefit from Singapore’s ongoing construction upcycle and resilient logistics sector demand. We call a BUY recommendation on Skylink. |
| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Addvalue Technologies (ADDV SP) 3 2 1: Liftoff!
Strong growth momentum likely to continue Addvalue reported strong FY26 PATMI of USD4.8m, up 148% YoY, led by a 60% YoY revenue growth, above our expectation. It is also currently undergoing renovations to double its capacity to 200 units pa and is currently exploring a potential listing of its IDRS business in the US. We raise our FY27/28E estimates by 3.7% and 2.3%, resulting in a higher TP of SGD0.34 from SGD0.31, pegged to 30x FY27E price-to-sales, a 65% discount to global peers.
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LHN Ltd (LHN SP) Exploring new growth avenues
1HFY26 boosted by gain from subleases LHN reported 1HFY26 PATMI of SGD16.8m (+18.6% YoY) on a SGD6m gain from net investment in subleases, partly offset by a SGD0.9m loss on disposal of an industrial property. As expected, the group kept its interim DPS of SGD 1.0 cent (unchanged from last year). We trim our FY26-28E core earnings 12-17% to assume slower food factory sales, resulting in losses for its property development business. We roll forward our valuation to FY27E and retain our BUY with an unchanged TP of SGD0.70, still pegged to 11x forward P/E.
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