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OCBC GROUP RESEARCH |
DBS GROUP RESEARCH |
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Singapore Hospitality Monitor – Watching for downside risks
Summary Points • May was a weak month for Singapore in terms of visitor arrivals and hotel performance, potentially as SGD strength and elevated air fares deter budget travellers • While there is some recovery in commercial air traffic through Middle Eastern airspace, travel patterns still suggest a preference for direct flights along the Asia-Europe corridor • A potential resolution of the Iran war does not imply an immediate return to pre-war normalcy, and we remain watchful of second order effects
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UOB-Kay Hian Holdings Trading Momentum Accelerates, Wealth Franchise Builds
Investment Overview Multiple engines of growth. UOBKH is evolving from a pure brokerage into a broader financial services group, offering wealth management services to enhance value for clients. The group's leading regional franchise, extensive distribution network capabilities as one of Singapore’s largest retail brokerages position it to capture structural growth in trading activity driven by Singapore's equity market reforms, while scaling higher-quality recurring wealth management fee income. This diversification should improve earnings visibility, enhance return on equity and support a structural re-rating over time. Today, wealth segment contributes approx. one-third of its total revenues.
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| LIM & TAN | LIM & TAN |
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Bloomberg reported that Samsung Electronics Co.’s quarterly profit surged 19-fold, just surpassing elevated expectations due to relentless demand for memory chips needed in AI data centers. Earnings by the world’s largest memory maker are in the spotlight as investors seek to justify skyhigh investments and valuations around AI. Global semiconductor shares jumped to record levels earlier this year, but have hit turbulence on fears about increased competition, possible overcapacity and whether plans for hundreds of billions of dollars in investment will pay off . While the cyclical strength of memory chip players such as Samsung, SK Hynix and Micron looks sustainable, profi t taking in Samsung shares despite the robust set of results release suggest investors are using the strength to lock in profi ts, choosing the “Sell On Strength” strategy. This could have implications for the semiconductor related stocks in Singapore that have done very well (on year to date basis) such as AEM, UMS, Frencken, Micro-Mechanics.
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Growth Pipeline & Future Outlook: Strategic Segment Expansion:
Centurion successfully entered the Key Worker Accommodati on (KWA) segment in April 2026 by acquiring two mining and energy infrastructure-backed assets (446 total beds) in Pilbara, Western Australia. Scalable Asset Pipeline: Acti ve constructi on and development projects across Singapore (Kim Chuan Lane), Malaysia (Nusajaya, Johor), Australia (Melbourne and Perth expansions), and the UK (Euston, London) are set to scale total capacity from c.81,388 beds up to approximately 85,470 beds by 2027. Value Creation Model: Future expansion relies heavily on its assetlight management ecosystem, generating highly scalable, recurring fee income via its listed CAREIT vehicle alongside stable cash distributions from owned assets. At S$1.48, Centurion is capitalized at S$1.2bln and trades at 13.3x forward P/E and 1.0x P/B with a dividend yield of 2.7%. Growth drivers include strategic acquisitions and developments in core PBWA and PBSA segments, as well as new Living Sector segments. Consensus TP of S$1.84 represents a 24% potential upside. We maintain “Accumulate” on Centurion Corp. |
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