|
PHILLIP SECURITIES |
UOB KAYHIAN |
|
Singapore REITs Monthly Weathering interest rate headwinds
▪ The S-REITs Index fell 1.6% in May, reversing the 3.2% gain recorded in April, as markets increasingly priced in the possibility of interest rate hikes. AIMS APAC REIT (AAREIT SP, non-rated) was the best performer, rising 4.6% following its strong FY26 results. Acrophyte Hospitality Trust (ARAUS SP, non-rated) was the worst performer, declining 20% after severe weather conditions and rising operating costs weighed on its 1Q26 performance. Overseas retail was the best-performing sub-sector during the month, gaining 0.3%, while overseas commercial was the weakest, falling 3.5%, as US-office REITs reacted negatively to the prospect of higher interest rates.
|
Yangzijiang Shipbuilding (YZJSGD SP) Chartering Breakthrough Meets Qatar's Multi-Year Outage
Highlights • YZJ's first two LNGCs have been quickly charted out to a blue-chip client, thus validating its role as China’s first private shipbuilder to build large LNGCs. • Qatar’s Ras Laffan outage and bullish ClarkSea Index (currently 45% above 10-year average) underpin multi-year LNG shipping upside and potential new order wins. • Maintain BUY with an unchanged target price of S$4.75.
|
| UOB KAYHIAN | LIM & TAN |
|
Metals And Mining Hawkish Fed Repricing Caps Gold Upside While Copper Supply Risks Remain Intact
Highlights • Copper has corrected from May’s record levels as hawkish Fed repricing, stronger US dollar pressure and softer spot demand weigh on sentiment, but the supply-risk premium remains intact, supported by Chile’s downgraded output, a slower Grasberg recovery and continued sulphur/sulphuric acid tightness.
|
The Business Times: Lum Chang Creations / LCC (S$0.805, down 2.5 cts) is planning to launch a placement of up to 35 million shares at S$0.759 each to raise gross proceeds of up to about S$26.6 million, the company announced on Thursday (Jun 18). Capitalized at S$254mln, LCC trades at a forward P/E of 10.5x, P/B of 7.5x and 6.2% dividend yield. The proposed placement (through a mix of new and vendor shares) is set to increase the public float above 25% to facilitate the upgrade to the Mainboard. The proceeds will be used for purposes including regional expansion, potential acquisitions and further entry into interior fit-out and additions and alterations projects. We maintain our Buy recommendation with a target price of $1.04. |
| DBS GROUP RESEARCH | DBS GROUP RESEARCH |
|
ComfortDelGro Corporation Ltd
UK public transport lower risk than feared Investment Overview Transformational international expansion to drive growth in the coming years. Given Singapore’s limited market size, the company has leveraged its strong balance sheet to actively pursue international acquisitions, including A2B (SGD150mn), CMAC (SGD135mn), and Addison Lee (SGD460mn). These acquisitions enhance its geographic diversification and complement existing operations, and are expected to be earnings accretive over time.
|
SEA Ltd
Alert: Key takeaway from expert call on quick commerce Quick commerce is emerging as a structural retail channel across Asia. While 5-10% of China’s e-commerce GMV, its growing much faster than traditional e-commerce. Shopee is expanding its quick commerce offering rather gradually through a marketplaceled model using cash from its Food-delivery business While quick commerce is viewed as a lower-margin business, Shopee's measured investment and monetisation levers could limit any near-term profitability impact. Maintain BUY for Sea Ltd with an unchanged TP of USD148.
|
