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UOB KAYHIAN |
LIM & TAN |
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Alpha Picks: Portfolio Resilience In A Weaker Market Highlights
• Our Sep 26 Alpha Picks beat the FSSTI by 0.4ppt on a market cap-weighted basis, but underperformed by 1.0ppt and 2.5ppt on a price-weighted and equal-weighted basis respectively. • For Oct 26: Add CICT; remove CIT and SIE. • Oct 26 Alpha Picks: BKM, CICT, FEH, HUAGL, KEP, NTTDCR, OCBC, OTEK, RSTON, SATS, UIBREIT, VALUE and VMS.
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SGX ($22.61, unchanged) announced that it has signed a Memorandum of Understanding (MOU) with the Vietnam Exchange (VNX) to deepen capital market cooperation and jointly explore the establishment of a Depository Receipt (DR) linkage between Singapore and Vietnam. The initiative represents a further step towards improving cross-border investment access and strengthening financial connectivity between the two markets. SGX’s market cap stands at S$24.2bln and currently trades at 28.6x forward PE and 10.2x PB, with a dividend yield of 2%. Consensus target price stands at S$24.33, representing 7.6% upside from current share price. While we view the proposed DR linkage positi vely as it could broaden SGX’s product off ering, improve cross-border investor participation and further strengthen its position as a regional capital markets hub, SGX’s valuations conti nue to remain loft y and, given the limited upside, we maintain our HOLD recommendation on SGX. |
| LIM & TAN | MAYBANK SECURITIES |
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FY2026 was an active year for Lendlease REIT, marked by a change in leadership and disciplined execution of a refined strategy. The year was marked by significant capital recycling initiatives as the Manager reduced aggregate leverage, increased exposure to dominant Singapore retail assets and grew the DPU. A key milestone during the year was the successful divestment of Jem office, which helped to optimise the portfolio and enhance the capital structure. The proceeds from the divestment were used predominantly to repay debt. The transaction was a key contributor to the reduction in aggregate leverage, which improved to 38.9% at the end of FY2026, from 42.6% a year ago. Lendlease REIT’s market cap stands at S$1.8bln and currently trades at 0.8x P/B, with a dividend yield of 6.7%.Consensus target price stands at S$0.72, representing 30.9% upside from current share price. In view of its decent yield backed by fairly stable fundamentals, coupled with a robust retail environment and an improved gearing of 38.9%, we maintain an Accumulate on Lendlease REIT.
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Singapore Living Sector CENT expands portfolio; Coliwoo recycles capital
Latest corporate moves with buying and selling CENT recently announced 2 major deals: a SGD22.3m land purchase in Adelaide, Australia, and the HKD364m acquisition of Yan Woo Building in Hong Kong. Both support the expansion of its accommodation and mixeduse portfolio. Meanwhile, Coliwoo is advancing its asset-light strategy through the sale and leaseback of 2 River Valley Road properties, following the completion of Coliwoo Midtown on 30 Sep. Maintain BUY on both CENT and Coliwoo. We will review our earnings estimates and TPs after the release of their results in Nov’26.
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| DBS GROUP RESEARCH | |
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DFI Retail Group Holdings Ltd Transformation into 100% operational company
Investment Overview Transforming into 100% operational company. In line with management’s strategy to transition from a portfolio holding company to an operator with full control over its businesses, the company has divested its minority stakes in Yonghui and Robinsons Retail. Most recently, it announced the sale of its 50% stake in Maxim’s in exchange for Maxim’s Starbucks business and USD340mn in cash, with the transaction expected to be completed by 31 Mar 2027.
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