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| 23-May-2026 11:29 |
Raffles Edu
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Profitable years ahead
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Raffles Education: Chew Hua Seng&rsquo s next chapter
After easing Raffles Education&rsquo s debt burden, CEO Chew Hua Seng is betting on Asean to power the former market darling&rsquo s next phase of growth
Two decades ago, at the height of the local market&rsquo s last bull run, Raffles Education was a standout favourite. Investors bought into CEO Chew Hua Seng&rsquo s pitch that the group was well placed to ride a surge in demand for higher education across the region.
After peaking above $3.50 in 2007, the company&rsquo s shares entered a long decline, falling to four cents in 2024 amid mounting debt pressures and softer student enrolment. The situation was compounded by a long-running feud between Chew and substantial shareholder Oei Hong Leong, alongside a series of legal disputes.
In recent years, Raffles Education has mostly made headlines for sporadic updates on property divestments in Singapore as it sought to lighten its debt load. Sentiment turned sharply earlier this year. The company sold its 51 Merchant Road property for $121.8 million, below its June book value of $152.7 million, but still recorded a net gain of $53 million, which will be used to reduce debt.
Chew, the controlling shareholder, has also increased his stake. Last October, he said he would convert about $16.5 million of unlisted convertible bonds into new ordinary shares at 6.44 cents each, instead of seeking repayment. He also elected to receive scrip shares in lieu of cash for his entitlement to the special dividend funded by the divestment of 51 Merchant Road.
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| 22-May-2026 10:02 |
Keppel
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Keppel Corp
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JP Morgan upgrades Keppel after failed M1 sale JP Morgan has just upgraded Keppel to overweight from neutral on May 21. JP Morgan had kept its neutral rating as recently as April 23, following Keppel&rsquo s 1Q2026 results. In August last year, Keppel announced the proposed sale of M1 to Simba for $1 billion in cash. However on May 18 the IMDA announced it has suspended the review of Keppel' s planned sale of M1 to Simba. Given that approval from IMDA is one of the conditions required, the deal has been terminated. For investors, the impact is about seven to 11 cents per share in terms of special dividends group CEO Loh Chin Hua had said on May 18. Keppel&rsquo s capital management policy is to distribute 10-15% of proceeds from non-core asset sales to shareholders. Part of FY2026&rsquo s ordinary dividend will comprise earnings from the sale of Keppel Merlimau Cogen to Keppel Infrastructure Trust for $128 million as Loh says any payout from the sale will be part of ordinary dividends. Keppel&rsquo s FY2025 ordinary dividends comprised 15 cents interim dividend and 19 cents final dividend. In addition, Keppel Sakra Cogen will be commissioned in the middle of this year However, Mervin Song, an analyst at JP Morgan has just upgraded Keppel to overweight from neutral, with a five-cent higher price target of $12.05 for end-June 2027. &ldquo We had been concerned about the slower pace of asset divestments and FUM growth due to the Middle East conflict, and the risk of revised terms or failure to secure regulatory approval for the M1 disposal. These risks have largely crystallised, with the failed M1 sale and Keppel returning -10.4% (including dividends) since March, lagging the STI&rsquo s 4.6% rise. We turn more positive as expectations and positioning have reset lower, with relative valuations and share price performance to peers having normalised,&rdquo Song says in his report. Song is forecasting a dividend of 42 cents for FY2026. In FY2025, Keppel paid an ordinary dividend of 34 cents, and a special dividend of 13.5 cents which included a dividend-in-specie of Keppel REIT. JPMorgan' s 42-cent dividend forecast comprises an ordinary dividend of 34 cents and a special dividend of 8 cents. Song estimates the special dividend as 15% payout from $260 million of divestments announced in 2025 and completed in 1Q2026, and potential sale of two Bifrost pairs raising at least $250 million. &ldquo In our view, Keppel&rsquo s pivot towards becoming a global asset manager remains on track and earnings should benefit from the ramp-up at the new Sakra plant. We see the risk-reward as attractive, with DPS of 42 cents implying a 4% yield, which should provide downside support. &ldquo Several investors have said to us they view this as an attractive &ldquo paid to wait&rdquo level while Keppel pivots to a global asset manager,&rdquo Song says. |
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| 22-May-2026 10:02 |
SingTel
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singtel
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Why is Singtel seeking an Aussie partner for Optus? The Singapore group&rsquo s wholly owned subsidiary has endured a string of crises in recent years [SINGAPORE] Along with announcing its latest results on Thursday (May 21), Singtel : Z74 -6.37% said it is &ldquo open&rdquo to working with potential Australian partners on Optus, its wholly owned subsidiary. The Business Times looks at why Singtel is considering bringing in a minority partner for Optus, which has been dogged by years of operational missteps, regulatory scrutiny and damaging outages. Upping its game Singtel said the quest for an Optus partner is part of its broader approach towards managing its portfolio of operating companies and associates, which involves &ldquo regularly evaluating opportunities to enhance group businesses and performance&rdquo . It hopes to find a &ldquo like-minded long-term local partner&rdquo that would take a &ldquo meaningful minority stake&rdquo in Optus. It added that such a partner could bring &ldquo complementary capabilities and expertise to improve service provision and quality&rdquo at Optus. Group CEO Yuen Kuan Moon said that Australia remains an attractive market because it has only three mobile network operators, making it structurally sustainable if managed well. However, he acknowledged that Optus &ldquo is not where it&rsquo s supposed to be today&rdquo . Despite its challenges, Optus&rsquo latest financial results show signs of operational stability. For its second half ended Mar 31, operating revenue rose 2.4 per cent to A$4.3 billion (S$3.9 billion) its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 4.8 per cent to A$1.2 billion. Troubles Down Under Singtel fully acquired Optus in 2001 for around S$11 billion. It is one of the group&rsquo s key overseas businesses, aside from regional associates and joint ventures such as Bharti Airtel in India, AIS in Thailand and Telkomsel in Indonesia. But Optus&rsquo string of crises in recent years that have dented its reputation and raised questions about its operational resilience. Among the most significant incidents are the following: February 2026: Optus was hit by an outage on Feb 9 that reportedly affected around 200,000 customers. The disruption, linked to a software issue, lasted several hours. September 2025: A 13-hour network disruption affected about 600 users and disrupted emergency-call access the outage was linked to at least two deaths in Australia. An independent review commissioned by Optus attributed the incident to a departure from standard processes during a network upgrade. Australia&rsquo s Prime Minister Anthony Albanese, describing the outage as an &ldquo unacceptable failure&rdquo , said Optus had &ldquo let down the nation&rdquo . Optus CEO Stephen Rue apologised for the incident, and Yuen said he was &ldquo deeply sorry&rdquo to learn of the disruption. September 2025: Optus was fined A$100 million by Australia&rsquo s federal court for selling phones and contracts to disadvantaged consumers, including those with intellectual disabilities. The company admitted to improperly selling products to more than 400 such customers in 16 stores between August 2019 and July 2023. November 2023: A near 14-hour nationwide outage disrupted services for millions of customers and affected emergency-call access across Australia. The incident led to the resignation of then-chief executive Kelly Bayer Rosmarin. Australian regulators later fined Optus A$12 million. September 2022: Optus suffered a major cyberattack affecting almost 10 million current and former customers. The breach exposed sensitive personal information, including their home addresses and passport details. In August 2025, the Australian authorities commenced legal proceedings against Optus over the alleged breaches. How can a minority partner help? Singtel&rsquo s move to consider selling part of its stake comes after an independent review into Optus following the outage in 2025. Among the recommendations from the probe was for the board to ensure that the CEO and executive team at Optus are equipped to manage the company&rsquo s reform. Singtel has also pledged full support for Optus in tackling its underlying problems, and said it was committed to the transformation of the unit. It previously disclosed that it has invested more than A$9 billion in Optus in the last five years. Citi Research analysts Arthur Pineda and Luis Hilado believe the onboarding of a strategic partner for Optus could &ldquo raise further proceeds&rdquo if successful. Meanwhile, Singtel has stressed that it remains &ldquo committed to Australia for the long term&rdquo , noting that Optus has been part of the group for more than 25 years. |
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| 22-May-2026 10:01 |
SingTel
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singtel
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Singtel H2 net profit down 20.9% at S$2.2 billion telco open to Aussie minority partner in Optus It proposes a final dividend of S$0.103 per share, including a value realisation dividend of S$0.033 [SINGAPORE] Singtel : Z74 -3.39% on Thursday (May 21) posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period. The stock fell as much as 3.2 per cent or S$0.16 to S$4.86 as at 9.28 am on Thursday morning following the news, with nearly 7.6 million shares changing hands. This translated to an earnings per share of S$0.1335, down from S$0.1656 for the second half ended March 2025. Its earnings for the period were weighed down by, among other things, lower contributions from its joint ventures and associates, as well as higher finance costs. Losses from foreign exchange over the corresponding period also stood at S$4.7 million, down from a gain of S$7.8 million a year ago. Nevertheless, the group&rsquo s underlying net profit for the six months rose 10.6 per cent for H2, to S$1.4 billion from S$1.3 billion previously. For the second half, revenue stood at S$7.4 billion, up 2.7 per cent on the year from S$7.2 billion. The board proposed a final ordinary dividend of S$0.103 per share, totalling to S$1.7 billion for the financial year ended Mar 31. This consists of a S$0.07 per share core dividend and a value realisation dividend of S$0.033 per share. This brings total annual dividend to a record of S$0.185 per share. With no operations in the Middle East, the group said its direct exposure to the region&rsquo s crisis is limited. However, it noted that most of its key markets are net energy importers and &ldquo susceptible to global energy price volatility&rdquo . &ldquo While existing long-term power contracts should help mitigate this exposure, there could be second-order implications in the form of inflationary pressure resulting in higher operating costs, softer consumer and business spending and slower economic growth,&rdquo said Singtel. &ldquo This will affect the group&rsquo s foreign exchange risk stemming from volatility in the regional currencies where it operates, further impacting translated earnings.&rdquo In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus. Miniority shareholders of Singtel, which fully owns Optus, have been concerned over its investment in the beleaguered Australian telco, given the emergency call outage last year which resulted in fatalities. In a media briefing in November, Singtel group CEO Yuen Kuan Moon noted that it has invested A$9 billion (S$7.7 billion) in capital expenditures at Optus over the past five years. The counter closed 0.8 per cent or S$0.04 higher at S$5.02 on Wednesday. |
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| 22-May-2026 10:00 |
SingTel
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singtel
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Singtel seeks clarity on taking part in telco consolidation analysts note &lsquo very high bar&rsquo for approval The group is also mulling a Reit IPO to create &lsquo permanent capital pools&rsquo for longer-term investments [SINGAPORE] Singtel is &ldquo seeking clarification&rdquo from the regulators on its ability to participate in the consolidation of Singapore&rsquo s telecommunications space, in the wake of news that the proposed sale of M1 to Simba Telecom has collapsed. &ldquo We have always been actively seeking to participate in consolidation,&rdquo said Singtel group CEO Yuen Kuan Moon on Thursday (May 21), at the telco&rsquo s FY2026 full-year results briefing. He noted that the group would consider taking part in a market consolidation if regulators give it the green light. Yuen&rsquo s comments followed the Infocomm Media Development Authority&rsquo s (IMDA) announcement on Monday that it is investigating allegations that Simba used radio frequency bands that had not been assigned to it. &ldquo Of course, if we are able to participate in the consolidation, we will definitely evaluate where the opportunities are, and how we would help lift the industry altogether in Singapore,&rdquo said the CEO. An environment with four telcos, he said, is &ldquo definitely not sustainable&rdquo . &ldquo As you can see in many other markets, especially in the region, we have seen that even larger markets have consolidated,&rdquo he added, citing Thailand, India and Indonesia as examples. High bar for regulatory approval OCBC analysts Chu Peng and Ada Lim told The Business Times that the bar for Singtel to receive regulatory approval to bid for M1 is &ldquo very high&rdquo . &ldquo Even if approval were granted, we believe a domestic telco acquisition may not be strategically compelling at this stage,&rdquo they said, adding that a domestic telco doing so &ldquo would likely increase leverage and divert capital from higher-priority initiatives&rdquo . Nirguanan Tiruchelvam, head of consumer and Internet at Aletheia Capital, similarly noted that the chance of Singtel putting its name forward to acquire M1 is &ldquo unlikely as the group is looking to diversify from domestic exposure&rdquo . In response to a question on how the company is handling tight competition in Singapore&rsquo s telco market, Ng Tian Chong, CEO of Singtel Singapore, noted: &ldquo Even though there&rsquo s aggression in the market, we focus a lot on differentiating ourselves through our network, as well as customer experience.&rdquo He cited the company&rsquo s deliberate effort to differentiate Singtel&rsquo s telco services in Singapore into three brands, each catering to different consumer segments. Potential Reit IPO The group is considering a potential real estate investment trust (Reit) initial public offering (IPO). This is part of its strategy to create &ldquo permanent capital pools that (Singtel) can continuously tap for longer-term investments&rdquo , said Arthur Lang, Singtel group&rsquo s chief financial officer. &ldquo This could be in the form of long-term investments, as well as a listing like a Reit, into which we can continue to inject assets,&rdquo he added. He said that this approach &ldquo enables financial flexibility&hellip strengthens returns and supports long-term value creation&rdquo . Lang said that a potential Reit IPO would not necessarily involve Singtel&rsquo s data centre assets, and described it as a possible capital-recycling option available to the group. He did not provide a timeline for the potential Reit listing. Potential minority partner in Optus In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus, its wholly owned Australian subsidiary. This follows an independent review into Optus, which has faced a string of crises in recent years. Among the recommendations from the probe was for the board to ensure that the CEO and executive team at Optus are equipped to manage the company&rsquo s reform. Singtel has pledged full support for Optus in tackling its underlying problems, and said it was committed to the transformation of the unit. It previously disclosed that it has invested more than A$9.3 billion (S$7.8 billion) in Optus over the last five years. Yuen said that Australia remains an attractive market because it has only three mobile network operators, making it structurally sustainable if managed well. However, he acknowledged that Optus &ldquo is not where it&rsquo s supposed to be today&rdquo . Responding to a question on whether specific market challenges led to this decision, he said the decision to find a local partner was &ldquo separate&rdquo from any challenges faced. &ldquo Looking for a local partner taking a minority stake in Optus is no different from our strategy and how we operate. We believe in bringing a local partner who&rsquo s like-minded.&rdquo FY2026 results Singtel on Thursday posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period. The telco attributed the decline mainly to lower exceptional gains from its India associate, Airtel. The dip translated into earnings per share (EPS) of S$0.1335, down from S$0.1688 a year earlier. Excluding exceptional items, the group&rsquo s underlying net profit for H2 rose 10.6 per cent to S$1.4 billion, from S$1.3 billion previously. Revenue came in at S$7.4 billion, up 2.7 per cent year on year from S$7.2 billion. The board proposed a final ordinary dividend of S$0.103 a share, totalling S$1.7 billion for the financial year ended Mar 31. This comprises a core dividend of S$0.07 a share and a value realisation dividend of S$0.033 a share, bringing Singtel&rsquo s total annual dividend to a record S$0.185 a share. For FY2026, the group&rsquo s net profit rose 39.5 per cent to S$5.6 billion, from S$4 billion the year before. Singtel&rsquo s full-year underlying net profit climbed 12.1 per cent year on year to S$2.8 billion from S$2.5 billion, driven by growth in its regional associates Airtel and AIS, as well as operating companies NCS, Digital InfraCo and Optus. Shares of Singtel closed 6.4 per cent or S$0.32 lower at S$4.70 on Thursday. |
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| 22-May-2026 09:59 |
AIMS APAC Reit
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AIMSAMPI Reit
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Aims Apac Reit secures sustainability-linked loan facilities of S$450 million, A$160 million It has also clinched a A$115 million syndicated loan with a green tranche of A$50 million [SINGAPORE] The manager of Aims Apac Real Estate Investment Trust : O5RU +1.91% (AA Reit) on Thursday (May 21) said that it has entered into a second unsecured sustainability-linked loan. This comprises S$450 million and A$160 million (S$146 million) in revolving credit facilities. Separately, it announced a A$115 million unsecured Australian syndicated loan. The sustainability-linked loan reinforces &ldquo AA Reit&rsquo s commitment to integrating sustainability into its capital management strategy&rdquo , the manager said. It incorporates sustainability margin adjustments tied to the Reit&rsquo s performance, with pre-determined targets focused on reducing Scope 2 &ndash or indirect &ndash carbon emissions expanding solar energy capacity across the portfolio and increasing the proportion of green leases with tenants. UOB arranged the loan facilities, acting as sole coordinator, mandated lead arranger, bookrunner and sustainability coordinator. Green loan tranche tied to Optus Centre The A$115 million syndicated loan was secured by two wholly owned subsidiaries of AA Reit, and arranged by UOB&rsquo s Sydney branch and ANZ. It includes a A$50 million green loan tranche tagged to Optus Centre, a Melbourne office asset that is part of the Reit&rsquo s portfolio, the manager said. It added that the tranche reflects the trust&rsquo s &ldquo focus on aligning its funding strategy with the environmental performance of its portfolio, while supporting the long-term resilience and sustainability credentials of its Australian assets&rdquo . &ldquo These facilities enhance our financial flexibility, extend our debt maturity profile and further diversify our funding sources,&rdquo said Russell Ng, chief executive officer of the manager. On a pro forma basis, AA Reit&rsquo s weighted average debt maturity would lengthen from 2.2 years to about four years, with all debt being unsecured after refinancing. Units of AA Reit closed S$0.03 or 1.9 per cent higher at S$1.60 on Thursday, before the announcement. |
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| 22-May-2026 09:58 |
Sri Trang Gloves
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Sri Trang Gloves
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Sri Trang Gloves Q1 profit falls 9.5% to 384.1 million baht Revenue is down 16.2% at 5.49 billion baht, from 6.55 billion baht a year earlier [SINGAPORE] Sri Trang Gloves : STG 0% posted a 9.5 per cent decline in net profit for its first quarter ended Mar 31, to 384.1 million baht (S$15.1 million) from 424.2 million baht a year earlier. This came as lower revenue and margins weighed on the group&rsquo s performance. Revenue fell 16.2 per cent to 5.49 billion baht from 6.55 billion baht a year earlier, the Thailand-based manufacturer said in a regulatory filing on Thursday (May 21). Gross profit dipped 33.1 per cent to 568.4 million baht, while gross profit margin shrank to 10.4 per cent from 13 per cent previously. Sales volume for the quarter fell 0.4 per cent year on year to 9.16 billion pieces. However, the group noted that this was a 4.6 per cent increase quarter on quarter, as operations normalised after temporary disruptions from flooding in late 2025. Sri Trang&rsquo s bottom line was buoyed by 284 million baht in partial insurance compensation income relating to the flooding. This boosted the group&rsquo s other income to 326.2 million baht, from 47.8 million baht a year earlier. It also recorded a net foreign-exchange gain of 92 million baht, reversing from a loss of 12.8 million baht previously. Earnings per share came in at 0.14 baht, down from 0.15 baht a year earlier. Sri Trang said that it remains upbeat in its outlook, though it acknowledged that the Middle East conflict has disrupted synthetic rubber supply chains. Rising raw material prices have caused prices of nitrile rubber, used in glove manufacturing, to surge by 160 per cent, it noted. However, Sri Trang said it still has a competitive advantage in manufacturing by using natural rubber latex, of which prices have risen more modestly, by about 30 per cent. Separately, Sri Trang announced a second phase of its share repurchase programme for financial management purposes. The group will spend up to 683 million baht to buy back up to 62.1 million shares, representing 2.17 per cent of its total issued shares. The repurchase period runs from May 12 to Nov 7. This comes after the completion of its first share buyback phase in March, during which it repurchased 100.18 million shares for 816.8 million baht. Shares of Sri Trang closed flat at S$0.36 on Thursday, before the news. |
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| 22-May-2026 09:57 |
Asiatic
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Up and up all the way.
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Asiatic warns it will report a loss for FY2026 due to impairment Asiatic Group (Holdings) warns that it will report a net loss for its year ended March, due to an impairment it is making on an investment held for sale. The company plans to report on or before May 30. For the nine months to Dec 2025, Asiatic reported a loss of $143,000, from earnings of $815,000 in the year earlier. Asiatic shares closed at 0.3 cents on May 21, down 25% for the day. |
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| 22-May-2026 09:57 |
KSH
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KSH Holding Value @ $0.50 Set to Rise
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KSH has turned profitable for FY2026 KSH Holdings expects to report a profit for its year ended March, reversing from a loss incurred in the preceding year. The company attributes this to improvements in its construction business. Two months ago, KSH announced that its order book has reached around $1 billion. KSH expects to report on or around May 28. KSH shares closed at 37 cents on May 21, down 1.33% for the day. |
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| 22-May-2026 09:54 |
ASL Marine
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ASL - Privitisation Candidate ?
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ASL Marine Maintains Positive Momentum Delivers Improved Financial Performance in 9MFY2026
Singapore, 21 May 2026 &ndash SGX-Mainboard listed ASL Marine Holdings Ltd. (&ldquo ASL Marine&rdquo or &ldquo 新 刘 海 运 &rdquo , the &ldquo Company&rdquo and together with its subsidiaries, the &ldquo Group&rdquo ), a vertically integrated marine services group in the region with an established 50-year track record, today released its business update for the 9-month period ended 31 March 2026 (&ldquo 9MFY2026&rdquo ).
Revenue for 9MFY2026 remained relatively resilient at S$271.1 million, with increased revenue contribution from ship repair, conversion and engineering services segment as well as ship chartering segment, while its shipbuilding segment contributed lower revenue.
Gross profit growth in 9MFY2026 was driven mainly by its ship chartering segment, while ship repair, conversion and engineering services segment posted lower gross profit contribution in 9MFY2026.
However, gross profit margin of the Group&rsquo s ship repair, conversion and engineering services segment continued to be above 20%, with gross profit margin of ship chartering segment improving significantly to 18% in 9MFY2026, leading to an increase of the Group&rsquo s overall gross profit margin by 3 percentage points to 19% in 9MFY2026 as compared to the corresponding period.
Overall, the Group&rsquo s net profit surged to $25.4 million in 9MFY2026 (9MFY2025: $9.2 million) mainly attributable to higher gross earnings and lower finance costs. Notably, the Group&rsquo s finance costs declined by approximately S$10 million in 9MFY2026 as deleveraging efforts continue to gain pace.
Commenting on the 9MFY2026&rsquo s business updates, Mr Ang Kok Tian, Managing Director, said &ldquo Despite prevailing market cycles and volatility, our improved results underscore the strength and stability of our operating model, with ship repair service and ship chartering segments continuing to demonstrate resilience through their essential, service-oriented nature and sustained customer demand.
Looking ahead, we remain committed to prudent capital management and disciplined growth initiatives. By strengthening our operational capabilities and maintaining a resilient financial foundation, we are well positioned to drive sustainable value creation for our stakeholders.&rdquo
See link for full release: https://aslmarine.listedcompany.com/news.html/id/2614945
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| 21-May-2026 10:10 |
OCBC Bank
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OCBC
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OCBC outbids banks on HSBC Indonesia deal by wide margin: sources The higher offer allows OCBC to enter bilateral negotiations to finalise the deal [SINGAPORE] OCBC substantially outbid rivals in a recent deal to buy HSBC Holdings&rsquo s retail and wealth assets in Indonesia, by more than US$100 million in most cases, according to people familiar with the matter. Only the second-highest bid was within US$100 million of OCBC&rsquo s, the people said, asking not to be identified because the information is private. The higher offer allowed OCBC to enter bilateral negotiations to finalise the deal, the people said. Representatives for OCBC and HSBC declined to comment. OCBC agreed to acquire the HSBC assets earlier this month to deepen its presence in South-east Asia&rsquo s largest economy. The price of the transaction was calculated based on the net asset value of HSBC Indonesia&rsquo s International Wealth and Premier Banking operations and a premium of up to about S$480 million, OCBC said. The difference between OCBC&rsquo s offer and others hasn&rsquo t previously been reported. The value is subject to adjustments and will be finalised after the deal is completed, potentially in the first half of next year, pending regulatory approvals, OCBC said. The amount was decided on a &ldquo willing-buyer, willing-seller basis,&rdquo taking into account business prospects and potential synergies, according to the bank. Other shortlisted bidders included Singaporean lenders DBS and UOB, Malaysia&rsquo s CIMB Group Holdings and Japan&rsquo s Sumitomo Mitsui Financial Group, people familiar with the matter have said Fast-growing markets such as Indonesia have attracted banks looking to expand. OCBC has a presence in Indonesia with its Jakarta-listed subsidiary Bank OCBC NISP Tbk, and it has grown in the country both organically and via acquisitions, including buying Commonwealth Bank of Australia&rsquo s local unit in 2024. The HSBC purchase will be the first by new OCBC chief executive officer Tan Teck Long, who is planning a deeper push into Asia, including in the affluent segment in Hong Kong and expanding private banking in Indonesia. As part of the deal, OCBC will offer to employ all 1,300 staff working in HSBC Indonesia&rsquo s retail banking operations, the bank said. Analysts have so far reacted positively to the rationale of the deal. Bloomberg Intelligence analysts Sarah Jane Mahmud and Alison Hor said it will boost OCBC&rsquo s South-east Asian franchise and strengthen profit margins and fees. It &ldquo should be modestly earnings accretive, excluding one-time integration costs,&rdquo they wrote. Tan has said the HSBC Indonesia assets are &ldquo a perfect fit&rdquo for OCBC&rsquo s Indonesia strategy, and the total portfolio of S$6.6 billion will also accelerate the bank&rsquo s growing wealth business. The HSBC portfolio had deposits of S$2.3 billion and a much smaller S$300 million customer retail loan book. BLOOMBERG |
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| 21-May-2026 10:08 |
YZJ Shipbldg SGD
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The Only Shipbuilding Blue Chip in SGX!
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Yangzijiang falls 5.3% to lowest price in over two months amid heavy trading [SINGAPORE] Shares of Yangzijiang Shipbuilding : BS6 -4.31% fell on Wednesday (May 20), with the Chinese vessel maker among the top traded stocks on the Singapore Exchange. The counter dropped as low as S$3.73 at 10.40 am, down by S$0.21 or 5.3 per cent, with 25.7 million shares changing hands. This marks its lowest price in over two months. The last time it traded lower was on Feb 23. By 10.46 am, it was still down 5.1 per cent or S$0.20 at S$3.74, with 25.9 million shares changing hands. |
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| 21-May-2026 10:07 |
Frasers Property
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Frasers Property
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Frasers sells retail complex in West Sydney to Vicinity Centres for A$400 million The sale is consistent with its capital recycling strategy, says Australian unit&rsquo s CEO [SINGAPORE] Frasers Property Australia is selling retail complex Eastern Creek Quarter (ECQ) in West Sydney, to Australian shopping centre operator Vicinity Centres for A$400 million (S$364 million). The sale is expected to complete on Jun 30. Cameron Leggatt, CEO of Frasers Property Australia, said: &ldquo Consistent with our capital recycling strategy, the successful sale of ECQ, positions us to pursue new opportunities in large-scale, mixed-use developments across our core eastern seaboard markets.&rdquo ECQ comprises three retail components: Stage 1 ECQ Shopping Centre with around 10,000 square metres (sq m) of gross lettable area (GLA) Stage 2 ECQ XL, a large-format retail and showroom precinct spanning about 11,000 sq m GLA and the recently opened outlet concept, which spans about 20,000 sq m GLA and houses around 100 brands. Stage 1 opened in 2020, followed by Stage 2 in 2022, while the outlet retail concept &ndash the first of its kind in Western Sydney &ndash opened in March this year. ECQ serves a catchment of around 1.2 million residents, offering outlet shopping alongside groceries, convenience retail, health and beauty services, dining and entertainment, said the company in a press statement on May 15. According to Mingtiandi, the ECQ sales campaign concluded ahead of its Jun 5 deadline after attracting strong interest from a broad mix of domestic and international investors, including private and institutional groups. Simon Rooney, CBRE&rsquo s head of retail capital markets, who brokered the deal for Frasers, told Mingtiandi that outlet malls are tightly held assets that rarely come to market. The sale of ECQ comes after it divested its built-to-rent development, Brunswick & Co, in Queensland, for a reported A$285 million, as well as Burwood Brickworks Shopping Centre in Victoria in April this year. Last October, Frasers sold its Australian energy retailing business, Real Utilities, to Active Utilities for A$30 million. Most recently, the group launched the sale of shopping mall Ed Square Town Centre for A$250 million, alongside a portfolio of five Melbourne industrial assets last valued at a combined S$218.9 million. Frasers Property&rsquo s Australia arm posted S$34.6 million in profit before interest, fair-value changes, tax and exceptional items for H1 FY2026, compared with S$7.5 million a year earlier, driven by stronger residential settlements and land sales. Investment earnings for the segment rose 13.5 per cent on the year to S$14.3 million, following the completion of Mambourin Retail in September 2025, while Rhodes Quarter delivered steady performance through leasing and asset management initiatives. Looking ahead, Frasers Property had said it will continue to unlock value with its capital recycling and capital partnership activities. |
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| 21-May-2026 10:06 |
CityDev
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CDL&rsquo s Singapore property sales fall to S$609.6 million in Q1, global hotel RevPAR rises 4.3% For the three months ended Mar 31, the group and its joint venture associates sold 242 units [SINGAPORE] City Developments Ltd (CDL) posted a decline in its first-quarter Singapore property sales, while its global hotel operations recorded higher revenue per available room (RevPAR). For the three months ended Mar 31, the group and its joint venture associates sold 242 units with a total sales value of S$609.6 million. This was down from the year-ago period&rsquo s 795 units with S$1.9 billion in sales value. The sales were driven mainly by the launch of its 246-unit freehold Newport Residences in January, the developer said in an operational update on Wednesday (May 20). It noted that in contrast, its Q1 2025 showing benefited from the launch of the larger 777-unit The Orie. Newport Residences recorded an average selling price of about S$3,200 per square foot. To date, it has sold 192 or 78 per cent of the units. In February, CDL clinched a government land sales parcel at Tanjong Rhu Road in a joint venture for S$709.3 million, or S$1,455 per square foot per plot ratio. The group&rsquo s hotel operations recorded a 4.3 per cent increase in global RevPAR to S$144.80 for the latest quarter, from S$138.80 the year before. This was on the back of RevPAR growth in Australasia (17.7 per cent), Singapore (7.5 per cent), Europe (4.7 per cent) and New York (4 per cent), it said. As at Mar 31, CDL&rsquo s net gearing ratio stood at 72 per cent, factoring in the fair value of investment properties and the Tanjong Rhu acquisition. Its interest cover stood at 2.7 times. It maintained " strong&rdquo cash reserves of S$2.1 billion, supported by S$4.3 billion in cash and undrawn committed credit facilities. &ldquo The group remains resilient amid ongoing geopolitical uncertainties, such as conflict in the Middle East, evolving trade policies, inflationary pressures, and energy costs,&rdquo CDL noted. &ldquo While global macroeconomic headwinds may lead to cautious sentiment, the group&rsquo s diversified portfolio remains healthy and stable.&rdquo Shares of CDL : C09 -1.82% closed 1.8 per cent or S$0.15 lower at S$8.07 on Wednesday, before the update. |
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| 20-May-2026 11:07 |
CityDev
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CityDev
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Quantify, be ambitious: Time for CDL, UOL to unveil plans to further boost share price Hongkong Land&rsquo s strategy update provides a useful reference [SINGAPORE] Amid a revival of interest in Singapore stocks and resilience in the Republic&rsquo s property market, shares of City Developments Ltd : C09 +4.85% (CDL) and UOL Group : U14 +1.6% have rallied strongly since mid-2025, though some gains have been erased by the conflict in the Middle East. Both CDL and UOL are active in property development, property investment and hospitality, and are constituents of the benchmark Straits Times Index. The duo delivered solid results for financial year 2025. Helped primarily by strong capital recycling gains and robust residential property sales in Singapore, CDL posted net profit of S$629.7 million, up 213 per cent on the year. For the full year, dividend per share (DPS) was S$0.28, versus S$0.10 for FY2024. Driven by strong performance from property development and investment, UOL recorded net profit of S$481.7 million for FY2025, up 34 per cent year on year. Shareholders were rewarded with a special dividend of S$0.07 a share, on top of a first and final dividend of S$0.18 a share for the full year. Book value discounts Still, CDL and UOL trade below book value. As at Tuesday (May 19), CDL&rsquo s share price was S$8.22, representing a 23 per cent discount to its end-2025 net asset value (NAV) per share of S$10.74. It is also a larger discount of 54 per cent to the restated NAV per share of S$17.99 with fair value of investment properties included. And including the fair value of investment properties and hotels, the share price is a 59 per cent discount to the restated NAV per share of S$20.16. Likely, the restated NAV per share of S$20.16 is still conservative as this excludes potential profit from residential property development. Meanwhile, UOL&rsquo s share price of S$10.17 as at May 19 represents a 27 per cent discount to its end-2025 NAV per share of S$13.92. The company recognises fair value on investment properties as determined by independent professional valuers. However, the surplus on valuation of hotel properties amounting to S$1.8 billion as at end-2025 was not incorporated in its financial statements. CDL and UOL should urgently unveil ambitious strategic plans with quantifiable targets to drive further share price improvement and close the valuation gap with what the groups are truly worth. CDL has engaged global advisory firm Teneo to conduct a review of its strategy and operations, and expects to announce the outcome of the review by June. Might unveiling new strategic plans that get buy-in from investors be another feather in the cap of octogenarian executive chairman Kwek Leng Beng? Hongkong Land&rsquo s template What Hongkong Land : H78 -0.38% unveiled in its strategy update in October 2024 can serve as a useful guide to CDL and UOL. Despite having significant exposures to the struggling property markets of Hong Kong and mainland China, the company&rsquo s share price has more than doubled since unveiling its new strategy. Hongkong Land set out to double underlying profit before interest and tax, double DPS, recycle capital of up to US$10 billion, and grow assets under management (AUM) to US$100 billion with active participation by third-party capital by 2035. By growing the business through development and management fees, the group aims to boost return on equity (ROE). It has made progress in executing its strategy. For example, it exited the property development business in Singapore and Malaysia with the sale of MCL Land to Sunway Group. Earlier this year, Hongkong Land established its inaugural private real estate fund, the Singapore Central Private Real Estate Fund, with Qatar Investment Authority and APG Asset Management as founding investors. Hongkong Land manages this fund, the assets of which include properties that the group injected. Based on the company&rsquo s latest annual report, total share buyback invested until end-February 2026 amounted to more than US$330 million, thereby reducing issued share capital by 2.4 per cent. The group has since continued to repurchase shares. Driving ROE While CDL and UOL achieved significantly higher ROE in 2025 from the year before, their ROEs of 6.6 per cent and 4.1 per cent, respectively, are unexciting. Both groups could use their investment properties to establish private real estate funds and/or listed real estate investment trusts to leverage third-party capital for growing AUM and earning recurring fee-based income. Such a strategy will help drive higher ROE on a sustainable basis. Perhaps the duo can do more in portfolio recycling, especially by exiting underperforming businesses as well as being more investor-friendly through robust capital management. Actively buying back shares may help, too. UOL could consider taking its listed subsidiary Singapore Land Group : U06 0% private to enhance operational flexibility and achieve cost savings. It could also divest its substantial holdings of financial assets, which include investments in UOB : U11 +1.23% and Haw Par Corporation : H02 -1.2%. UOL&rsquo s balance sheet as at end-2025 included financial assets worth over S$1.5 billion. Might selling stakes in a bank and a diversified group with a strong presence in consumer healthcare be optimal for UOL? CDL and UOL are sharp in execution on property development and management of investment properties in Singapore. Both groups have built sizeable hospitality portfolios and strong hotel management capabilities. Despite share price rallies, CDL and UOL are deeply undervalued. The board of directors and management of these two leading businesses should set out strategic plans that help optimise returns for shareholders expeditiously. CDL and UOL can unleash the animal spirits of investors by unveiling bold plans which strengthen their investment stories. |
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| 20-May-2026 11:06 |
CityDev
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DBS maintains ' buy' call and $12 target price on CDL following the return of ' experienced steward' Kwek Leng Peck Tabitha Foo of DBS Group Research has maintained her positive view on City Developments after news that Kwek Leng Peck - " an experienced steward" - has rejoined the company' s board after six years. Leng Peck, cousin of executive chairman Kwek Leng Beng and uncle of group CEO Sherman Kwek, had previously served on CDL' s board from 1987 to 2020, before leaving after he disagreed with the controversial acquisition of China-based Sincere Property Group, which ended badly for CDL. With effect from June 1, Leng Peck will be CDL' s vice chairman and non-executive director. All this while, he has been chairman of another Kwek family-linked company, Hong Leong Asia, which has been enjoying strong gains in recent years from its multiple-sector exposure in engines and building materials. " His return comes at a pivotal juncture as CDL undertakes a strategic business review amid increasing investor focus on capital allocation, portfolio optimisation and shareholder returns," says Foo, who has kept her " buy" call and $12 target price on CDL. " Given his more than four decades of experience across the Hong Leong Group, we believe Mr Kwek&rsquo s appointment could provide additional strategic depth and operational oversight as CDL evaluates its longer-term growth trajectory and value-unlocking initiatives," she adds. Foo notes that HLA, under Leng Peck, has seen its " significant" increase in market value, driven by stronger earnings momentum, disciplined capital allocation and strategic expansion initiatives. CDL shares closed at $7.84 on May 18, down 0.25% for the day, and down 2.24% year to date. |
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| 20-May-2026 11:05 |
EliteUKREIT GBP
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Elite REIT - the only GBP-denominated REIT today.
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Beyond survival: Elite UK Reit plots next phase of growth After stabilising the trust, CEO Joshua Liaw looks to more asset repositioning, active portfolio management [LONDON] Since taking over as CEO of Elite UK Reit&rsquo s manager in 2023, Joshua Liaw has helped steer the once-troubled trust out of crisis, stabilising its balance sheet while laying the groundwork for its next phase of growth. &ldquo When I first joined three years ago, the Reit (real estate investment trust) was quite frankly distressed,&rdquo Liaw said during a media visit to its properties last week. The Reit was grappling with gearing of 47.5 per cent &ndash just shy of the 50 per cent regulatory limit &ndash alongside refinancing concerns and vacancies across several assets. &ldquo I actually volunteered to relocate myself to London for four months straight... to work this out,&rdquo he added. An equity fundraising exercise in December 2023 brought gearing down to a &ldquo more sustainable level&rdquo , while a subsequent refinancing one addressed investors&rsquo concerns over the trust&rsquo s financial stability. Since then, Elite UK Reit has broadened its investment strategy beyond its traditional government-leased portfolio of primarily job centres and offices into the living sector &ndash namely the purpose-built student accommodation (PBSA) and build-to-rent segments. This includes repositioning vacant buildings in Dundee, Scotland, and Cardiff, Wales, into student housing assets. Liaw said the move into the living sector was driven by investors&rsquo preference for defensive and counter-cyclical income streams. That said, he stressed that the manager was not looking to acquire PBSA assets from other owners, especially amid elevated financing costs. Instead, the opportunities in Dundee and Cardiff emerged after certain government leases expired, allowing the manager to assess whether the underlying sites could be redeveloped for higher-value use. &ldquo It&rsquo s based on what opportunities, what properties we can reposition at that point in time,&rdquo he said. &ldquo It&rsquo s not that we chose Dundee and Cardiff &ndash it&rsquo s more that Dundee and Cardiff chose us.&rdquo Fortunately, Liaw noted that the two were &ldquo excellent markets&rdquo with student-to-bed ratios that are &ldquo very much in favour of developers&rdquo . Beyond expanding into the living sector, the manager has also been working to reduce lease concentration risks within its core government-backed portfolio. In February, the Reit secured lease extensions for around 70 per cent of its properties leased to the UK government&rsquo s Department for Work and Pensions (DWP). The exercise increased the portfolio&rsquo s weighted average lease expiry to 7.2 years on a pro forma basis as at end-2025, from 2.4 years previously. &ldquo That has always been a concern since (the trust&rsquo s) initial public offering six years ago, because close to 96 per cent of our leases (were set to expire) in 2028,&rdquo Liaw said, making the recent exercise a &ldquo very big milestone&rdquo for the Reit. The improved income visibility lifted portfolio valuations to £ 460.2 million (S$790.2 million) as at Mar 31, 2026, and reduced net gearing to 37.4 per cent, from 40.7 per cent as at end-2025. &ldquo The world is still rather uncertain today,&rdquo said Liaw. &ldquo The macroeconomic environment is volatile, so (that) headroom&hellip is very much well-received.&rdquo Beyond survival With its balance sheet stabilised and the bulk of its leases extended, the manager is now turning its attention towards capital management and portfolio reconstitution. One immediate priority is staggering the trust&rsquo s debt maturities and diversifying its funding sources. &ldquo We have been speaking to lenders &ndash new lenders as well as existing lenders,&rdquo said Liaw. The manager will also continue exploring redevelopment opportunities across its portfolio, particularly for some of the Reit&rsquo s freehold and &ldquo virtual freehold&rdquo assets. &ldquo That&rsquo s super important for us &ndash for growth but also for future-proofing,&rdquo said Liaw. &ldquo Some of these seeds will not (bear) fruits immediately&hellip We&rsquo re taking a very long-term view in some of these repositioning projects.&rdquo One example is Peckham Jobcentre in London, which comprises two freehold sites collectively valued at more than £ 15 million, up 8 per cent following the recent lease extension. Although the properties continue to generate stable rental income from DWP, they could hold longer-term redevelopment potential as the surrounding neighbourhood evolves. &ldquo We are sometimes thought of as a future land bank with cash flow,&rdquo Liaw said. &ldquo While the government will continue to occupy it and give you rental every month, that doesn&rsquo t mean you&rsquo re going to lose out on future optionality.&rdquo The manager will also assess opportunities to recycle capital through selective divestments and portfolio reconstitution. For example, it received planning approval in February to repurpose a vacant site in Blackpool, previously zoned for office use, into a data centre facility spanning up to 20 acres (8.1 hectares). So far, Liaw said the costs and efforts required to ready the plot have been &ldquo very worth it&rdquo . &ldquo Now it&rsquo s just (settling) the finishing touches before we proceed to monetise it in a few coming months.&rdquo Proceeds from the eventual divestment could be redeployed into new investment opportunities, pare down debt, or returned to unitholders through share buybacks or special dividends, he said. For some of its other assets, Liaw said the manager has in recent years received &ldquo unsolicited inquiries&rdquo from interested buyers. &ldquo We have very politely refused in some cases, because we were waiting for the lease regear to happen. Now that (it has), we can relook at some of these inquiries going forward.&rdquo &ldquo We (don&rsquo t want to) just be a Reit manager that holds assets,&rdquo he added. &ldquo We also want to do the right thing by (actively managing) and selling the assets&hellip at peak valuations. I think you will see us doing a lot more in the next few months.&rdquo Navigating uncertainty Despite expanding into the living sector, Liaw said the Reit was not looking to aggressively diversify across multiple real estate segments. &ldquo Even in this sector, there is a lot more that we can do... We don&rsquo t have to be everything to everyone.&rdquo Asked about potential opportunities in social housing, he noted that the segment sat within the living sector and was supported by government-backed cash flow &ndash &ldquo exactly the two things we love, and within our investment strategy&rdquo . But these assets remain unfamiliar to Singapore investors. &ldquo We are looking at that, but currently, I don&rsquo t think we have anything that&rsquo s specifically available.&rdquo Looking ahead, Liaw cited geopolitical tensions, inflation and interest-rate volatility as key risks, but said the portfolio remains relatively defensive. Most of the Reit&rsquo s leases are structured as triple-net leases, where tenants are responsible for all ongoing expenses. Around 92 per cent of its debt is on fixed rates, with borrowing costs at 4.7 per cent as at end-Q1. Liaw added that job centres &ndash which account for 66 per cent of the trust&rsquo s gross rental income &ndash are particularly resilient during economic downturns given the counter-cyclical nature of employment support services. These are government offices that help job seekers find work and access welfare support. The Reit&rsquo s renewed leases also include rent reviews linked to the consumer price index, with compounded annual rental increases ranging from 1 to 5 per cent. On the UK&rsquo s political uncertainty, Liaw pointed out that leases were signed with the UK government through the Secretary of State for Housing, Communities and Local Government. In any case, he said: &ldquo The government of the day, whether it is the Conservatives, Labour or Reform, I think everybody will agree that getting people back to work is a key pathway to prosperity.&rdquo &ldquo No party will say we want more misery, we want more unemployment,&rdquo Liaw added. &ldquo It&rsquo s going to be very much part of the social fabric of the UK for the long foreseeable future.&rdquo |
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| 20-May-2026 11:04 |
Frencken
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Frencken Group Ltd
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Frencken shares fall 15.5% after Q1 earnings dive The technology solutions provider posts a 20.2% drop in net profit [SINGAPORE] Shares of Frencken : E28 -7.57% fell by as much as 15.5 per cent or S$0.47 to S$2.57 shortly after market open on Tuesday (May 19), weighed down by a dive in its latest first-quarter earnings as well as a broader fall in the tech sector. As at 9.30 am, nearly 3.4 million shares had changed hands. Frencken&rsquo s shares were subject to a circuit breaker on Tuesday morning on the Singapore Exchange (SGX). A circuit breaker &ndash which is imposed when a stock&rsquo s price moves beyond a pre-specificed percentage threshold &ndash temporarily restricts trading to facilitate more measured market movement. The share price drop is a speed bump for Frencken, which has been on a tear in recent months. Up to May 18, the stock had seen a 120.3 per cent increase year to date. Frencken&rsquo s fall also tracks the broader drop in tech stocks overnight. The S& P 500 ended about 0.1 per cent lower at 7,403.05, weighed down by tech stocks, and the tech-heavy Nasdaq slid 0.5 per cent to close at 26,090.73. Other tech stocks on SGX also experienced declines in early trading. As at 10.23 am, AEM was down by 4.6 per cent, and UMS Integration saw a 4.4 per cent loss. The drop in Frencken&rsquo s shares also came after the release of its Q1 business update on Tuesday, where it posted a net profit of S$8 million for Q1 2026, down 20.2 per cent from S$10 million in the year-ago period. This was mainly due to lower revenue contributions from the semiconductor and analytical life sciences segments of Mechatronics Europe, the technology solutions provider said. The quarterly net profit also included a foreign exchange loss of S$1.1 million. For the quarter, revenue fell 6.4 per cent to S$202 million from S$215.8 million. This was primarily driven by a 7.7 per cent year-on-year decrease in mechatronics division&rsquo s revenue to S$180.4 million, which was partially cushioned by robust front-end and back-end sales growth from key semiconductor equipment customers in Asia. Its medical segment&rsquo s revenue improved 5 per cent year on year to S$34.7 million due mainly to increased customer orders in Europe. Analytical life sciences segment&rsquo s revenue declined 21.2 per cent year on year to S$36.2 million as customer demand in Mechatronics Europe remained soft in Q1, Frencken said. Industrial automation segment&rsquo s revenue was relatively stable at S$7.6 million, contributed mainly by a key data storage customer&rsquo s capital expenditure on upgrading and maintenance of assembly and test lines. Meanwhile, the APS Division&rsquo s revenue grew 4.3 per cent to S$20.5 million, lifted by higher sales to automotive customers. The group on Tuesday said that while the macroeconomic environment remains uncertain amid ongoing geopolitical conflicts and foreign exchange volatility, it anticipates improving momentum for the rest of the year. |
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| 20-May-2026 11:04 |
Delfi
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Buoyant outlook
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Delfi&rsquo s Q1 Ebitda slips 0.8% to US$16.8 million despite higher sales The group expects the Middle East conflict to exert upward pressure on some operating costs [SINGAPORE] Chocolate confectioner Delfi : P34 0% reported a 0.8 per cent dip in its earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$16.8 million for the first quarter ended Mar 31, 2026, from US$17.0 million in the year before. The slight drop in Ebitda came even as net sales for the quarter rose 6.2 per cent year on year to US$159.1 million, the group said in a business update on Tuesday (May 19). Topline growth was driven by a 19.6 per cent increase in the group&rsquo s Own Brands sales across the region, sustaining a momentum from late 2025. However, the overall dip in earnings was weighed down by a decrease in Agency Brands sales. Gross profit margin for Q1 fell by 140 basis points to 26.6 per cent from the year before. The group attributed this primarily to a weaker Indonesian rupiah and the absorption of higher cocoa costs in its cost base from earlier forward contracts. Sales in Indonesia, the group&rsquo s largest market, grew 2.5 per cent to US$101.9 million. Delfi noted that Own Brands in the country maintained strong growth momentum, growing 20.5 per cent on the back of its core premium brands. This was partially offset by the strategic termination of an Agency Brands account. Sales in its regional markets &ndash comprising Malaysia, the Philippines and Singapore &ndash climbed to US$57.2 million, up 13.3 per cent from the year-ago period. Delfi generated net cash from operations of US$28.7 million for the quarter. Its cash balance stood at US$93.8 million as at end-March, up from US$68.0 million as at end-December. The group expects the ongoing Middle East conflict to exert upward pressure on some operating costs. It added that while the cocoa market has retreated from 2025 peaks on expectations of a supply recovery, the outlook remains volatile. It said: &ldquo The ongoing conflict in the Middle East has heightened macroeconomic uncertainty and triggered volatility in energy costs and global currencies, including those in our key markets.&rdquo To mitigate risks, Delfi said it is proactively managing its supply chain and strategically increasing its inventory of essential raw materials. Shares of Delfi closed flat on Tuesday at S$1 before the announcement. |
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| 20-May-2026 11:03 |
ThaiBev
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ThaiBev
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Maybank Securities upgrades Thai Beverage on attractive valuations and cyclical recovery Citing signs of a cyclical recovery, Hussaini Saifee of Maybank Securities has turned more bullish on Thai Beverage after the alcohol giant' s 2QFY2026 results, with call upgraded from " hold" to " buy" . He observes that spirits revenue was up 1.3% y-o-y and net profit up 6.4% despite cautious consumer conditions. Beer rebounded strongly in 2Q after a weak 1Q, supported by festive activities and improving demand momentum. " Management also highlighted healthier domestic demand, while costs remain well controlled through early raw material procurement and disciplined marketing spending," he adds. From 43 cents, Hussaini now figures that this stock is worth 48 cents, as he raised his FY2026 to FY2028 earnings forecast. At just 10x forward PE, Thai Beverage trades at around 50% discount to peers while offering an attractive dividend yield of around 6%, he reasons. On the other hand, Chee Zheng Feng of DBS Group Research has turned more cautious. He has kept his " buy" call but has cut his target price, albeit from a level topping his peers. From 62 cents, Chee now figures the stock is worth 53 cents, which is based on 12x earnings, a valuation multiple at the counter' s five-year average and broadly in line with other major regional spirits companies. " We believe the company remains on track to deliver our FY2026 earnings growth forecast of 9.4%. While crop prices for next year have yet to be finalised and could trend higher, we believe resilient demand and disciplined cost management should help sustain stable earnings in FY2027," says Chee. Chee, whose earlier bullish views that the re-rating of this stock is based on possible value-unlocking corporate actions, has maintained his view that this is so. " The group owns high quality beer and F& B assets that, in our view, could command higher valuations under the right corporate structure or listing strategy. However, the timing of such initiatives remains uncertain and will likely depend on market conditions and underlying business performance," he says. Meanwhile, Chu Peng of OCBC Group Research has kept her " buy" call and 55 cents fair value. She expects Thai Beverage to see continued recovery in sales volumes for both spirits and beer, following earlier disruptions from border conflicts between Thailand and Cambodia, as well as adverse weather conditions in Vietnam. Lower raw material costs on molasses and malt in FY2026 should support the company&rsquo s recovery and help offset softer demand. She notes that Thai Beverage has secured supply of molasses, required for spirits production, at prices around 40% compared to the year earlier. The company' s beer production has also secured malt at an attractive cost level through whole of the year. Similarly, Meghana Kande and Lim Siew Khee of CGS International, citing Thai Beverage&rsquo s resilient margin position which anchors earnings growth, despite quarterly volatility in volumes, have maintained their " add" call. They have also held their target price at 58 cents, which is based on 12x FY2027 earnings. For them, re-rating catalysts include margin expansion from lower input costs and potential value-unlocking, such as the long-talked about IPO of its beer business. On the other hand, downside risks include heightened competition eroding market share, macro weakness impacting volumes, and margin pressure from higher SG& A and input costs. |
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