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MAYBANK SECURITIES |
MAYBANK SECURITIES |
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Frasers Log. & Comm. Trust (FLT SP) Attractive yield, underpinned by resilience
Quality portfolio at a discount, initiate with BUY We initiate coverage of FLCT with a BUY and a DDM-based target price of SGD1.00. Long leases, high occupancy and built-in rental escalations underpin a visible and growing income stream. The ongoing portfolio shift towards logistics and industrial assets should further strengthen income resilience. While rising interest rates pose a headwind, we believe indexed and step-up rents, together with an attractive valuation of 6.8% yield and 0.8x P/B, provide buffers.
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Regional Plantations Record high stockpile may cap near term CPO price upside
Stay Neutral for now As we highlighted in the past, El Nino’s impact on output lags (ie in 2027). Present historic stockpile on good production but weak exports needs to ease swiftly to allow CPO prices to move higher sustainably in 2027. For now, MY-based planters are safer bets than ID-based planters as (1) rainfall has thus far been generally normal in MY while a large part of ID continued to suffer from rainfall deficits since Jul 2026, and (2) ID’s latest agrarian reform law poses regulatory uncertainty. Top BUYs: SDG, SOP & GENP.
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| UOB KAYHIAN | LIM & TAN |
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Frasers Centrepoint Trust (FCT SP) Benefitting From Population And Job Growth In North Region
Highlights • URA’s master plan would create vibrancy for the catchment area around Causeway Point. Woodlands Regional Centre, which includes Woodlands Gateway located right next to the RTS Link station, would create 100,000 jobs. The residential population in the north region is expected to increase by 150,000-160,000 or 25-27% over the next 10-15 years.
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Deluge Corp is set to list on the SGX Main Board 16’Oct 26 (public offer application closes 14’Oct, 12pm). As the largest player in Singapore’s fire detection and protection industry, Deluge is well-placed to benefit from a sustained pipeline of large-scale infrastructure, industrial, and mixed-use developments. A robust order book of S$433mln provides clear revenue visibility over the next four years. We recommend a “Subscribe” for the IPO shares with a fair value of 91 cents per share (pegged to 9.9x FY27F P/E, 25% discount to peers). Our view is that IPO valuations at a S$87mln market cap and 6.6x FY27F P/E are a bargain when we account for Deluge’s growth potential and high ROEs. Its regional peers trade at 12-13x P/E. We estimate dividends of 2.4 S cts/2.9 S cts in FY27F/FY28F at a ~25% payout ratio, providing shareholders a decent 4.0%/4.8% yield. Deluge’s mid-single digit P/E coupled with a 4% dividend yield positions the company as a compelling value opportunity within the Singapore market, backed by strong operational cash flow generation and a statutory-backed maintenance moat. Post-IPO, Executive Director and Executive Chairman Mr Vincent Cheo is the largest shareholder with a 48.2% stake. |
| DBS GROUP RESEARCH | DBS GROUP RESEARCH |
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China / Hong Kong Market Focus DBS Equity Picks
Stay diversified and selective Since 31 Aug, the share prices of our top picks fell 8.5%, underperforming the Hang Seng Index by 1.5ppt, dragged by CATL (3750 HK) and Zijin Mining (2899 HK), while CCB (939 HK) was the sole gainer.
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Singapore Exchange Ltd Growth momentum easing into FY27
Investment Overview Only stock exchange in Singapore; multi-asset strategy takes lead. As Singapore’s sole exchange operator, SGX offers diversified exposure across equities, fixed income, foreign exchange and commodities, providing investors with a diversified revenue base and multiple growth levers. Beyond its core exchange franchise, SGX has strategically expanded its ecosystem and invested in various platforms to enhance its value chain offerings.
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