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UOB KAYHIAN |
UOB KAYHIAN |
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CSE Global (CSE SP) Positive Highlights From Meeting Reinforce Growth Outlook
Highlights • Key takeaways from our recent meeting with management suggest that CSE’s outlook remains positive, with more DC contract wins expected by end-26 as well as strong potential for more contracts from the second hyperscaler. • We still expect stronger 2H26 margins as start-up costs normalise and operating efficiency improves. Credit risk is low given CSE’s exposure to established hyperscalers and US government end-users. • Maintain BUY with a target price of S$1.79. CSE currently trades at 15x 2027F PE, around its long-term mean despite having commendable growth.
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Yinson Holdings (YNS MK) 1HFY27 ER Results Addendum: Adjustments On Depreciation
Highlights • 1HFY27 profit on ER basis by its FPSO subsidiary. YP reveals new information, namely: a) an estimated US$10m one-off financing costs for the early repayment of Agogo junior loan of US$383m, b) US$3m one-off incentive bonus for FPSO AN, and c) FPSO MQ weakened slightly by pending charter payment by Petrobras. • Operations on track, with active debt repayment ongoing, as shown in the successful refinancing of FPSO Agogo into a US$1.5b project bond. The Agogo project bond carries a lower coupon of 6.5% vs the other two bonds for Brazil FPSOs (8.5-8.9%). Potentially, two more new FPSOs may be secured. While our EBITDA forecasts are aligned, the ER depreciation was nearly 3-4x of IFRS equivalent, hence we cut our profit forecasts by up to 49%. Depreciation adjustment does not impact our valuation. • Retain BUY; target price: RM2.40.
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| LIM & TAN | LIM & TAN |
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Foundation Healthcare Holdings ($0.54, down 1 cent) disclosed that nine emerging specialists have joined or signed on to the specialist group since 30 June 2026, spanning anaesthesiology, hand surgery, obstetrics and gynaecology, oral and maxillofacial surgery, orthopaedic surgery, and otorhinolaryngology (“ENT”). FHH’s market cap stands at $717.5 mln and currently trades at 19x forward PE. Ever since its IPO at 76 cts on 8 July 2026, FHH has seen its share price decline by 28.9% to 54 cts as of 16 October 2026, despite continued expansion of its specialist network. Although the continued expansion positively as it strengthens FHH’s multidisciplinary healthcare platform, enhances cross-referral opportunities and supports higher utilisation of its ambulatory centres and day surgery facilities, the key consideration remains whether the growing specialist network can translate into meaningful earnings growth, given the potential gestation period for newly recruited specialists to build patient volumes. Given its still relatively expensive valuations and the healthcare sector remaining out of favour among investors, we recommend a HOLD on FHH.
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SGX Mainboard-listed Wee Hur Holdings Limited (S$0.585, up 2 cents) is pleased to announce that Nanyang Technological University, Singapore has issued a Letter of Award to Wee Hur Holdings Ltd in respect of its proposal submitted on 13 September 2026 to design, build, finance, operate and maintain an approximate 1,398-bed purpose-built student accommodation (“PBSA”) at NTU Singapore’s Yunnan Campus. At its last traded price of $0.585, Wee Hur is capitalized at $538mln, trades at 7.3x forward P/E, yields 2.6%, 0.8x price to book and based on consensus target price of $0.98, the 1-year upside potential is 66%. This marks Wee Hur’s entry into the PBSA market in Singapore, its third market after Australia and Hong Kong. We like the track record of Wee Hur in their ability to capitalize and monetize such as the PBSA market in Australia where they were able to monetize their PBSA assets at a significant premium. Given share price weakness in recent months, coupled with decent upside to consensus TP and a robust construction exposure in Singapore, we have an Accumulate recommendation on Wee Hur. |
| MAYBANK SECURITIES | MAYBANK SECURITIES |
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AIMS APAC REIT (AAREIT SP) Positive reversions despite softer leasing demand
FY27 in line; Maintain BUY 1H27 DPU rose 4.0% YoY to SGD4.908c, supported by contributions from completed AEIs and acquisitions, as well as lower property expenses. Portfolio occupancy moderated to 93.7% (-2.4 percentage points QoQ), while rental reversions remained positive at 5.7%. Aggregate leverage stood at a manageable 37.4%, while borrowing costs eased to 3.9%. We maintain BUY and leave our FY27–28E DPU forecasts unchanged. We lower our DDM-based TP to SGD1.62, incorporating a slightly higher cost of equity to reflect softer leasing momentum.
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Raffles Medical Group (RFMD SP) Haze watch
Haze-related conditions on the rise; maintain BUY As unhealthy air continues to linger over Singapore, the Ministry of Health (MOH) says there has been a spike in visits to clinics and emergency rooms due to haze-related health conditions. As one of the largest private healthcare providers, RFMD is a prime beneficiary as the government warns this current haze may persist for several weeks due to El Nino. Retain BUY on RFMD with our DCF-based TP of SGD1.09, premised on HoH earnings recovery, its robust balance sheet with a dividend yield of 3.7%, and the company’s continued share buybacks.
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