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UOB KAYHIAN |
LIM & TAN |
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NTT DC REIT (NTTDCR SP) Embracing Closer Alignment With Unitholders’ Interest
Highlights • NTTDCR aims to expand in Europe to increase its exposure to Tier 1 markets. It has debt headroom of US$261m based on a gearing of 40%, which could be utilised to acquire a hyperscale 24MW DC in Frankfurt, Germany in 2HFY27. • Its portfolio occupancy would have increased 3.3ppt to 99.2% if we include committed leases that have yet to commence. Majority of these new leases are expected to contribute to revenue starting from 3QFY27. • NTTDCR will amend its performance fee formula to incentivise DPU growth and increase alignment with unitholders’ interest. We raised FY27 and FY28 DPU forecasts by 2% due to cost reduction. Re-iterate BUY for its attractive DPU yield of 9.0% for FY27 and 9.3% for FY28. Target price: US$1.31.
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We highlight key points in Lum Chang Creations’ / LCC (S$0.31, unchanged) 2026 Annual Report: Chairman’s Statement: FY2026 was a defining year for Lum Chang Creati ons. In our fi rst fi nancial year as a listed company, the Group delivered record earnings and strengthened its financial position. Shortly after the financial year end, we achieved another significant milestone with the transfer of our listing from the Catalist to the Mainboard of the SGX-ST with effect from 16 July 2026. To have reached the Mainboard barely a year aft er our initial public offering is a significant achievement. It reflects the progress we have made and the confidence that our shareholders have placed in the Group. On behalf of the Board, I thank you for your support thus far and look forward to your continued support. Capitalized at S$205mln, Lum Chang Creations trades at 8.2x forward P/E with a P/B of 4.3x. At current price levels, LCC remains well-supported with an undemanding P/E, dividend yields of 6.5% and high ROEs of ~40%. The Group conti nues to expect a vibrant pipeline of projects as more modernist icons and heritage sites are identified for conservation. Bloomberg consensus TP of $0.54 represents a 74% potential upside. We maintain our BUY recommendation on LCC. |
| LIM & TAN | UOB KAYHIAN |
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We highlight the salient points from ASL Marine’s (S$0.24, down 1 cent) FY2026 Annual Report, which refl ected a significant improvement in profitability, a stronger balance sheet and continued progress in its service-centric business model. While revenue growth remained modest, improved operating margins, stronger ship chartering performance and substantially lower finance costs contributed to a more than doubling of net profit. ASL Marine’s market cap stands at S$247mln and currently trades at 6.5x forward PE and has a dividend yield of 1.3%. We expect ASL Marine’s short- to medium-term growth to be driven by its Ship Repair and Ship Chartering segments, supported by robust marine activities, which should sustain healthy EBITDA generati on. Longer term, Singapore’s proposed Long Island development and coastal protection initiatives could provide additional growth opportunities, particularly for its dredging and marine engineering operations. FY2027 earnings should also benefit from lower depreciation, finance costs and vessel holding costs following the disposal of idle vessels. Assuming no significant capital expenditure, we expect ASL Marine to conti nue deleveraging and potentially transition into a net cash position in the near term. We maintain our BUY recommendation on ASL Marine with a target price of S$0.47 and continue to position ASL Marine as one of our alpha picks.
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JD.com (9618 HK) 3Q26 Results Preview: Broadly In Line; Food Delivery Losses Narrow As International Expansion Continues
Highlights • JD.com is expected to report its 3Q26 results in mid-November. We forecast group revenue to grow 3.5% yoy to Rmb309.6b, broadly in line with consensus, supported by JD Retail’s return to positive growth. Retail operating margin should remain broadly stable yoy, while narrowing food delivery and Jingxi losses should support group earnings recovery, partly offset by a modest increase in international losses as JD continues its European expansion. • Maintain BUY with an unchanged target price of HK$148.00 (US$38.00).
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