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| 06-May-2026 09:27 |
PARAGONREIT
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SPH Reit
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Paragon deal: Why investors should get ready for more Reit mergers and take-private offers In a less-conducive operating backdrop, smaller Reits may be weeded out, as larger ones play the role of consolidators THE most prosaic observation about the purchase of Paragon by CapitaLand Integrated Investment Trust (CICT) from Cuscaden Peak may also be the most profound: Among real estate investment trusts (Reits), the biggest players have an unbeatable advantage when it comes to acquiring assets and enhancing them. So, perhaps investors should get ready for more take-private deals, and another spate of mergers. With elevated inflation and interest rates weighing on yield-oriented investments and the ongoing rejuvenation of the broader Singapore market, investors will probably become less enamoured with all but the largest Reits that are exposed to the most resilient asset classes. Against this less conducive backdrop, some of the smaller Reits may be weeded out, while the largest players play the role of consolidators, scooping up assets that become available amid the shake-out. Indeed, the most striking aspect of the Paragon deal is that the manager of CICT seems much less fazed by the ageing property&rsquo s need for a costly asset enhancement initiative (AEI) than Cuscaden Peak. A key rationale for Cuscaden Peak&rsquo s take-private offer for Paragon Reit last year was that its flagship asset needed an AEI costing between S$300 million and S$600 million in order to maintain its competitiveness &ndash an exercise which would have caused enormous volatility in its distributions per unit (DPU). The manager of CICT has said it will conduct its own evaluation of AEI opportunities for Paragon, and that the final scope and costs may differ from Cuscaden Peak&rsquo s preliminary analysis. One reason for this seeming nonchalance is that Paragon is not an overwhelmingly large proportion of CICT&rsquo s portfolio a phased AEI combined with upward rent adjustments could mitigate much of the adverse impact on its DPU. CICT also has ample financial capacity to take on an asset like Paragon, thanks in part to its S$2.5 billion sale of Asia Square Tower 2. CICT&rsquo s manager noted that it is unlocking value from the leasehold office asset by selling it at a net property income yield of 3 per cent, and redeploying the capital into a freehold integrated development at a higher yield of 3.9 per cent. CICT has also raised S$750 million through a placement of new units at S$2.30 each. Exits and repositionings Cuscaden Peak was not the only Reit sponsor that felt the need to withdraw from the public market. Frasers Hospitality Trust was also taken private by its sponsor group last year, after a strategic review determined that it would have difficulty growing its distributions and net asset value (NAV) in the face of adverse macroeconomic trends and structural factors in the hotel space. Meanwhile, some sponsor groups have been trying to reposition the weaker Reits under their umbrellas, or simply selling them off. In an interesting case, CapitaLand Investment launched Shanghai-listed CapitaLand Commercial C-Reit last year. CapitaLand China Trust (CLCT) &ndash which has not been trading well in Singapore &ndash played a direct role in the exercise by taking a stake in the Reit, and seeding it with one of its properties. CLCT&rsquo s sponsor group has said it will list a second China Reit later this year, and eventually combine both the China Reits. This could create a bigger platform for CLCT to tap China&rsquo s domestic capital market, and unlock the value of its mature assets. In another case, ESR Group sold Suntec Reit&rsquo s manager to Tang Organization earlier this year. The acquiring group, which already controlled about 36 per cent of Suntec Reit&rsquo s units, said it would conduct a strategic review to strengthen the Reit&rsquo s performance and enhance its capital efficiency. In the wake of that transaction, Hongkong Land acquired 10.8 per cent of Suntec Reit&rsquo s units from ESR Group &ndash sparking speculation that it may be interested in buying some of its assets. Hongkong Land launched an S$8.2 billion property fund in Singapore earlier in the year. Among the fund&rsquo s assets are Hongkong Land&rsquo s one-third stakes in Marina Bay Financial Centre (MBFC) Towers 1 and 2, Marina Bay Link Mall and One Raffles Quay. Qatar Investment Authority&rsquo s Asia Square Tower 1 is also part of the fund&rsquo s initial portfolio. More mergers? These recent developments highlight the consolidating role that large property groups &ndash such as CapitaLand, Frasers Property and Hongkong Land &ndash are playing in the shifting dynamics of the Reit sector. Meanwhile, CICT&rsquo s acquisition of Paragon underscores the importance of the largest Singapore-focused Reits in sustaining the vibrancy of the whole sector. With their heft and the resilience of their Singapore-based assets, CICT and others like it &ndash including CapitaLand Ascendas Reit (Clar), Frasers Centrepoint Trust and Keppel Reit &ndash have helped draw investors as well as new listing aspirants to the Singapore market. With increasingly unfavourable macroeconomic conditions, the time might now be right for the largest Singapore-focused Reits to strengthen themselves by becoming even bigger through mergers. This is not a new idea. Many of the leading Reits in the market have merged in the past to gain scale. CICT was known as CapitaLand Mall Trust until it acquired CapitaLand Commercial Trust in 2020. Mapletree Commercial Trust was renamed Mapletree Pan Asia Commercial Trust (MPACT) four years ago, after acquiring Mapletree North Asia Commercial Trust. Mergers among sponsor groups have also resulted in Reits with overlapping mandates combining themselves. This happened after CapitaLand acquired Ascendas-Singbridge, and after ARA Asset Management was acquired by ESR Group. Looking ahead, the much-talked-about merger of CapitaLand Investment and Mapletree Investments could be a catalyst for Clar to subsume Mapletree Industrial Trust, and for CICT to acquire MPACT. Some groundwork will probably be necessary to stave off minority investor resistance, though. One obvious sticking point is that CICT is 95 per cent exposed to Singapore, and trades at 1.1 times NAV while MPACT is only 61 per cent exposed to Singapore, and trades at 0.7 times NAV. Still, the creation of bigger Reits, with larger exposure to resilient asset classes, could be the key to maintaining the vibrancy of the sector. |
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| 06-May-2026 09:26 |
OCBC Bank
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OCBC
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OCBC&rsquo s Indonesia deal boosts wealth push, may herald more M& A under new CEO Tan Teck Long: analysts Industry watchers say the bank might look to high-growth Asean markets for more acquisitions [SINGAPORE] OCBC&rsquo s latest Indonesian acquisition is expected to strengthen its fee income base and expand its wealth franchise in South-east Asia&rsquo s largest economy, as pressure on lending margins pushes banks to diversify earnings. Analysts said the &ldquo bolt-on&rdquo deal could also signal more acquisitions to come, particularly in high-growth Asean markets where global banks are trimming their retail and wealth operations. On Monday (May 4) night, OCBC announced that its Indonesian subsidiary, Bank OCBC NISP Tbk, would acquire HSBC&rsquo s retail and wealth management operations in Indonesia. The total consideration will be based on the net asset value of the Indonesian business upon completion, plus a premium of up to 6.5 trillion rupiah (S$481.1 million). The deal is expected to close in the second quarter of 2027. Some analysts have welcomed the acquisition, which is expected to be earnings-accretive and add S$6.6 billion to OCBC Indonesia&rsquo s assets under management. This comprises S$4.3 billion of customers&rsquo investments in mutual funds and bonds, as well as insurance and customer deposits of S$2.3 billion. A retail customer loan book of S$300 million will also be transferred to OCBC Indonesia, along with a customer base of about 336,000. On the talent front, around 1,300 staff are expected to join OCBC Indonesia&rsquo s wealth management pool. The Singapore lender&rsquo s latest acquisition is a &ldquo good fit to incrementally grow its Indonesia franchise&rdquo , particularly in wealth management, wrote S& P Global Ratings analysts Ivan Tan and Sue Ong in a Tuesday note. &ldquo We believe wealth management is attractive in a low-interest-rate environment because it augments recurring income to cushion earnings, especially at a time when Singapore banks are facing net interest margins compression,&rdquo they added. They added that the &ldquo immediate financial impact&rdquo on OCBC is limited, given the &ldquo small size&rdquo of the acquisition. Lim Rui Wen, an equity research analyst at DBS Group Research, called Monday&rsquo s deal a &ldquo highly synergistic bolt-on acquisition&rdquo that is focused on adding affluent customers and strengthening OCBC Indonesia&rsquo s domestic wealth capabilities. The insurance and customer deposit base of S$2.3 billion should also provide stable, low-cost funding to OCBC Indonesia, said Lim. The acquisition builds on the bank&rsquo s earlier expansion in Indonesia. In 2024, OCBC acquired Bank Commonwealth Indonesia, adding more than 1.2 million customers. But not all analysts were positive on this move. UBS analysts Aakash Rawat and Benjamin Tan wrote in a report that the deal looks &ldquo a bit overvalued&rdquo , based on the reported profit before tax of S$3.9 million in 2025 for HSBC Indonesia&rsquo s retail and wealth business. They pointed out that profit before tax declined from S$30.8 million in 2023 to S$9 million in 2024. &ldquo This suggests that OCBC is buying a business which has been witnessing declining profitability over the last couple of years,&rdquo the UBS analysts added. More deals possible Beyond the latest acquisition, analysts said OCBC could continue to look for similar opportunities. In the near term, the lender is &ldquo likely in a consolidation phase&rdquo , said Bloomberg Intelligence senior credit analyst Rena Kwok. &ldquo In the medium term, I believe the group may keep a keen eye on similar portfolios in high-growth Asean markets if the valuation is right,&rdquo said Kwok. Kathy Chan, equity analyst at Morningstar, noted that Monday&rsquo s deal was &ldquo actually quite in line&rdquo with OCBC&rsquo s updated strategy, unveiled by group chief executive Tan Teck Long at the lender&rsquo s fourth-quarter results briefing in February. OCBC is scheduled to release its first-quarter results for the three months ended Mar 31 on Friday, before the market opens. At the February briefing, Tan &ndash who took over as chief executive of South-east Asia&rsquo s second-largest bank on Jan 1 &ndash laid out OCBC&rsquo s Asean ambitions under its new &ldquo Next Frontier&rdquo strategy. These included possible acquisitions in the region, funded in part by conserving capital after its existing capital return plan concludes. In FY2025, OCBC announced a two-year, S$2.5 billion capital return plan, which runs till the end of FY2026. Tan said in February that the lender would revert to its historical 50 per cent dividend payout policy after the current capital return plan ends. The bank would retain funds that might otherwise have gone towards another capital return plan &ndash equivalent to around 10 per cent of annual net profit &ndash partly to support acquisitions that fit its corporate strategy. The CEO added then: &ldquo If there&rsquo s any inorganic opportunity in Asean, we will certainly want to take a look.&rdquo The S& P analysts noted that OCBC remains well-capitalised after the acquisition, with sufficient buffers to fund inorganic growth opportunities. Morningstar&rsquo s Chan concurred: &ldquo OCBC mentioned in the media release that they don&rsquo t expect the transaction to have (a) material impact on OCBC&rsquo s capital, so we think further portfolio acquisitions in their key markets are possible with the ample capital they have.&rdquo However, JP Morgan analysts expect a &ldquo small negative reaction&rdquo for the stock since the upside from the deal is more long-term and incremental, while the probability of lower dividends may be more immediate. Global bank exits DBS Group Research&rsquo s Lim noted that global banks undergoing group-wide restructuring have started to retreat from certain locations, creating potential opportunities for Singapore&rsquo s three local lenders. In 2022, Citigroup closed deals to sell its Taiwan consumer business to DBS, and its consumer franchises in Indonesia, Malaysia, Thailand and Vietnam to UOB. The latter transaction, valued at S$4.9 billion, was completed in 2025. &ldquo We believe in some of the locations within Asia, global banks may lack scale to compete due to subscale economics alongside the complexity for some of these global banks to operate in every single location footprint,&rdquo said Lim. &ldquo For the Singapore banks, having bolt-on acquisitions in geographies they already operate in, may be complementary to their existing offerings,&rdquo she added. |
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| 06-May-2026 09:24 |
Centurion
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Centurion Corp
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Centurion Accommodation Reit&rsquo s Q1 NPI of S$37.5 million exceeds expectations Revenue is 2.7% higher than the projected S$51.1 million better-than-expected results due to higher occupancy and rental rates [SINGAPORE] The manager of on Tuesday (May 5) posted net property income of S$37.5 million for the first quarter ended Mar 31. This is up 2.4 per cent from its prospectus forecast of S$36.6 million, according to the bourse filing. Revenue stood at S$52.5 million for the period, 2.7 per cent higher than the projected S$51.1 million. The better-than-expected results came on the back of higher occupancy and rental rates, as well as stronger currencies such as the British pound and the Australian dollar against the Singapore dollar, partially offset by higher property operating expenses. The business update noted that purpose-built worker accommodation (PBWA) in Singapore registered an occupancy of 94 per cent. It exceeded the expectation of 93.1 per cent. &ldquo This outperformance was driven by higher occupancy, supported by stronger leasing across existing assets and encouraging demand for the newly added bed capacity in Westlite Toh Guan and Westlite Mandai,&rdquo it said. Meanwhile, purpose-built student accommodation (PBSA) assets in the United Kingdom and Australia registered occupancy levels of 99 per cent and 97.5 per cent, respectively. Looking ahead, the Reit&rsquo s accommodation portfolio remains anchored by favourable structural fundamentals across its core markets, said its manager. Tony Bin, CEO of the manager, said: &ldquo We are encouraged by the quarter&rsquo s steady performance, driven by strong occupancy across our portfolio, with results exceeding our initial public offering projections for the second consecutive reporting period.&rdquo The statement added that strong foreign labour demand and limited supply continue to support the PBWA portfolio in Singapore, while robust higher education demand in the United Kingdom and Australia underpins growth in the PBSA portfolio. |
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| 06-May-2026 09:24 |
CSE Global
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CSE Global
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CSE Global secures $271.2 mil worth of new orders in 1QFY2026, 74.6% up y-o-y CSE Global, a provider of electrification, communications and automation solutions, has secured $271.2 million worth of new orders in the 1QFY2026 ended March 31, 74.6% higher y-o-y. The group&rsquo s electrification segment accounted for majority of the wins this quarter with orders totalling $177.8 million, 393% higher y-o-y. The wins were mainly driven by stronger demand for the segment&rsquo s solutions in the US. The communications segment saw orders increase by 20.8% y-o-y to $76.9 million, while the order wins for the automation segment fell by 70.4% y-o-y to $16.4 million. The wins brought the group&rsquo s ending order book for the quarter to $716 million, 16.2% higher y-o-y. &ldquo The strong order momentum in 1QFY2026 reflects robust demand and our team&rsquo s ability to convert a healthy pipeline into tangible wins. Our priority is disciplined execution and timely delivery of these new contracts, while continuing to build on this momentum and pursue selective opportunities that align with our core capabilities,&rdquo says Lim Boon Kheng, managing director and CEO of CSE Global. &ldquo With a healthy order book and tender pipeline, we remain cautiously optimistic about maintaining momentum into the coming quarters, even as macroeconomic and geopolitical headwinds continue to evolve,&rdquo he adds. Strategic review update In a separate statement, the group announced that it is in the process of appointing a financial adviser to help with its strategic review, which is still in the &ldquo early stages&rdquo . CSE Global first announced its intention to undertake a strategic review on March 5. The review came about after a request from the group&rsquo s controlling shareholder, Heliconia Capital Management, as well as a &ldquo non-binding, preliminary indicative expression of interest (EOI) from a party)&rdquo to discuss a &ldquo potential strategic transaction&rdquo . The review, said the group then, seeks to maximise shareholder value. This includes, among others, &ldquo an analysis of strategic options available to the company and an analysis of possible transactions involving the company&rsquo s shares and/or all or part of the company&rsquo s business and assets&rdquo . |
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| 06-May-2026 09:23 |
Ley Choon
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Ley Choon
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Ley Choon&rsquo s constructions and engineering subsidiary secures $35.6 mil worth of contracts
Ley Choon Group&rsquo s subsidiary, Ley Choon Constructions and Engineering Pte. Ltd, has secured contracts worth $35.6 million. The contracts, which are for the laying of underground utilities services, are expected to be completed within 24 to 36 months. They are expected to contribute positively to the group&rsquo s earnings but are not expected to materially impact its earnings per share (EPS) and net tangible assets (NTA) per share for the current financial year ending March 31, 2027. |
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| 06-May-2026 09:22 |
Mapletree Log Tr
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MTL ( MAPLE LOGISTICS TRUST)
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Analysts still positive on Mapletree Logistics Trust amid forex and rental headwinds, asset recycling tailwinds OCBC upgrades MLT to &lsquo buy&rsquo but cuts fair value estimate CGSI trims target price but maintains &lsquo add&rsquo call [SINGAPORE] Analysts were mixed on Mapletree Logistics Trust (MLT) : M44U 0%, citing divergent forecasts after it posted a lower fourth-quarter distribution per unit (DPU) last week. OCBC Group Research on Tuesday (May 5) upgraded MLT to a &ldquo buy&rdquo rating, but lowered its fair value estimate to S$1.36 from S$1.40. On Monday, CGS International (CGSI) maintained its &ldquo add&rdquo call on the stock but lowered its target price to S$1.48 from S$1.68, while DBS reiterated its &ldquo buy&rdquo and maintained its S$1.55 target price. OCBC Group Research analyst Andy Wong said that &ldquo value has re-emerged&rdquo for MLT, with the counter trading at an estimated FY2027 distribution yield of 5.9 per cent based on its closing price on May 4. This is 0.3 standard deviation above its 10-year average of 5.7 per cent, he added. Despite the positive outlook, OCBC has trimmed its FY2027 DPU estimates for MLT by 4.5 per cent, partly due to updated foreign exchange assumptions. &ldquo Persistent foreign exchange headwinds and absence of distribution from divestment gains have also weighed on DPU growth,&rdquo Wong said. MLT on Apr 30 posted a 7 per cent decline in Q4 DPU to S$0.01819, with revenue and net property income down 1.7 per cent and 0.9 per cent, respectively, which the manager attributed to the absence of contributions from divested properties and weaker regional currencies. Similarly, CGSI shaved its FY2027 to FY2028 DPU estimates by around 1.8 to 2.1 per cent due to &ldquo slower rental growth assumptions&rdquo . Citing management&rsquo s guidance, CGSI analyst Lock Mun Yee and Li Jialin highlighted that rental reversions are expected to remain &ldquo relatively flattish&rdquo for FY2027 on an overall portfolio perspective. Conversely, DBS Group Research predicts an &ldquo overall upside&rdquo for the real estate investment trust&rsquo s (Reit) DPU in the medium term, anchored by ongoing asset recycling activities and development strategies. Its analyst, Derek Tan, noted that continued asset recycling will be a &ldquo key strategic lever&rdquo to drive higher returns for MLT, as the Reit eyes S$200 million to S$300 million in divestments for its upcoming financial year. Moreover, he added that MLT&rsquo s DPU declines were largely due to the absence of divestment gains and the foreign exchange impact, with its overall underlying performance remaining stable. With the Reit offering an &ldquo attractive yield&rdquo in excess of 6 per cent and trading at a price-to-book ratio of less than one time, Tan believes it is &ldquo well placed to deliver attractive total returns&rdquo . &ldquo In the event of a turn in interest rates, we expect allocations in Singapore-listed Reits to accelerate going forward, with increased positioning into sectors resilient to economic downturns,&rdquo he said. Delayed China recovery not a major setback CGSI maintained its &ldquo add&rdquo call as it thinks that MLT&rsquo s China logistics warehouse portfolio could be &ldquo stabilising as deterioration in rental reversion is slowing&rdquo . DBS Group Research&rsquo s Tan noted that the later-than-expected recovery of MLT&rsquo s China portfolio &ndash which has been postponed to H2 2027 onwards &ndash could disappoint investors. However, he does not view this as a major setback. &ldquo Overall organic growth remains on an uptrend with other markets (such as) Singapore, Japan and Hong Kong (remaining) strong, and will pull overall performance higher,&rdquo said Tan. Limited impact from US-China tariff war, Middle East conflict MLT is not likely to be directly impacted by the recent US-China trade war, as a substantial portion of its portfolio&rsquo s revenue, around 85 per cent, is domestically focused, said DBS&rsquo Tan. Similarly, OCBC Group Research&rsquo s Wong noted that the Reit &ldquo has not seen significant impact from the Middle East conflict&rdquo . Leasing demand remains stable and net electricity costs, which form less than 2 per cent of property expenses, are &ldquo manageable&rdquo , he said. &ldquo However, a prolonged conflict could exert cost pressures on tenants and weigh on overall leasing sentiment,&rdquo Wong said. |
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| 06-May-2026 09:14 |
Beng Kuang
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Beng Kuang Marine
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Beng Kuang Marine&rsquo s 1Q2026 Business Update Beng Kuang Marine Limited reported a resilient start to FY2026 today, underpinned by steady project execution and improving activity levels across its core business segments, despite a shift in revenue mix impacting margins.
&bull Deliver revenue growth of 7.7% year-on-year to S$25.7 million, supported by FPSO-related work, with a total order book of S$55.9 million and approximately S$51.2 million secured for FY2026.
&bull Maintain operational efficiency through disciplined cost management, with administrative expenses reduced by 13% year-on-year, supporting quarter-on-quarter profit resilience despite margin compression from project mix.
&bull Strengthen forward visibility with recurring FPSO lifecycle services across 19 vessels globally and expanding shipbuilding and deck equipment pipelines extending into FY2028.
Read the full 1Q2026 Business Update: https://www.bkmgroup.com.sg/view& id=1361
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| 05-May-2026 11:55 |
DBS
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DBS
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Analysts upgrade DBS, lift target price on improved forecasts, wealth franchise growth Increased inflows into Singapore from a flight to safety and the strong Singapore dollar may benefit bank, says OCBC Group Research [SINGAPORE] CGS International (CGSI) and Macquarie upgraded their calls on DBS : D05 +0.46%, citing improved forecasts for Singapore&rsquo s largest bank after its strong first quarter earnings beat expectations last week. Following DBS&rsquo earnings release on Thursday (Apr 30) &ndash where its net profit rose 1 per cent year on year to S$2.93 billion and surpassed Bloomberg analysts&rsquo expectations &ndash CGSI upgraded the bank to &ldquo add&rdquo from &ldquo hold&rdquo , raising its target price to S$63.80 from S$60. &ldquo We turn more constructive on DBS after its analyst briefing on Apr 30, due to its resilient net interest income (NII) and stronger growth in its wealth management fees,&rdquo said CGSI analyst Tay Wee Kuang. Similarly, Macquarie upgraded DBS to &ldquo neutral&rdquo from &ldquo underperform&rdquo and lifted its target price by 8 per cent to S$52.38 from S$48.56. Macquarie analyst Jayden Vantarakis noted that DBS&rsquo guidance for 2026 has turned &ldquo slightly more upbeat&rdquo . Vantarakis noted that DBS now thinks its earnings &ldquo have a good shot at coming in flat year on year for FY2026&rdquo . Noting DBS&rsquo resilient Q1 earnings, strong balance sheet and existing credit provision buffers in place, Vantarakis expects the bank to post a roughly 2 per cent year on year increase in profits for FY2026. Macquarie has raised DBS&rsquo earnings per share (EPS) estimates for 2026 to 2028 by 3 per cent and 6 per cent, respectively, on account of better NII and profitability. CGSI has also lifted DBS&rsquo EPS forecasts for FY2026 to FY2028 by 1.1 per cent to 1.3 per cent, respectively, citing its &ldquo resilient&rdquo NII and stronger growth in its wealth management fees. PhillipCapital on Monday also raised its target price to S$61 from $60 and maintained its &ldquo accumulate&rdquo call. OCBC Group Research on Thursday increased its fair value estimate to S$60.93 from S$59.43 and assigned the bank a &ldquo hold&rdquo rating. Macquarie&rsquo s Vantarakis noted that DBS&rsquo Capital return plans remain in place for FY2026 to FY2027 and that the bank may benefit from long-term opportunities, even as it faces near-term risks. He pointed out that DBS has de-risked its consumer and SME portfolio: &ldquo DBS believes supply chain impacts on its clients from the Middle East conflict can be contained and expects medium-term lending opportunities in infrastructure and renewables to arise.&rdquo Wealth business growth may drive earnings Growth in DBS&rsquo wealth business may support earnings, analysts said. CGSI&rsquo s Tay noted that the investment house&rsquo s improved rating for the bank accounts for &ldquo stronger wealth management fee growth that would allow DBS to eke out earnings growth in FY2026, with potential upside on better deposits growth&rdquo . Elevated geopolitical tensions could benefit DBS&rsquo wealth business, said OCBC head of equity research Carmen Lee. &ldquo With the flight to safety and the strong Singapore dollar, we expect some inflow of funds into Singapore. This should be positive for DBS&rsquo s wealth business,&rdquo said Lee. This, alongside market expectations of no rate cuts by the US Federal Reserve this year, should mitigate an &ldquo otherwise challenging situation for banks&rdquo , added Lee. Citing management, she noted that the bank has &ldquo limited direct exposure&rdquo to the Middle East. Lee noted that wealth income currently accounts for 53 per cent of total fee income, up from 48 per cent in Q1 2025. Moreover, DBS has grown its wealth assets under management from S$291 billion in 2021 to S$492 billion currently, which is a &ldquo credible compounded annual growth rate of 14 per cent per year&rdquo , she added. &ldquo With this growing base, we expect that the group will continue to grow its wealth franchise including more products and locations,&rdquo said Lee. Similarly, PhillipCapital research analyst Glenn Thum concurred that wealth flows and fees could fuel growth. &ldquo We nudge up our FY2026 earnings estimates by 1 per cent from higher wealth management estimates,&rdquo Thum said. He expects non-interest income to remain the primary growth driver, while bancassurance could provide counter-cyclical diversification to investment-linked wealth management fees. |
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| 05-May-2026 11:55 |
SIA
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SIA
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DBS upgrades SIA Engineering Co to &lsquo buy&rsquo on improved risk-reward lowers target price DBS Group Research analyst Jason Sum has upgraded SIA Engineering Co (SIAEC) to &ldquo buy&rdquo as he deems the stock to be worth buying at this point. &ldquo After the 15% correction since our downgrade in January, valuations at -1 s.d. (standard deviations) and resilient aftermarket-driven earnings support a more favourable risk/reward,&rdquo he writes. Sum had downgraded his call on SIAEC to &ldquo hold&rdquo on Jan 14 due to limited upside and &ldquo execution risks&rdquo in achieving profitability in its engine and components segment. Shares in SIAEC closed at $3.64 on Jan 14, compared to its last-traded price of $3.13 as at Sum&rsquo s latest report dated April 30. In his report, the analyst highlights several factors in SIAEC&rsquo s favour including its edge in technology and strong captive business thanks to its link with Singapore Airlines (SIA). The airline contributes about 70% - 80% to the group&rsquo s top line. The maintenance cycle of SIA&rsquo s fleet &ldquo strongly impacts&rdquo SIAEC&rsquo s core business, notes Sum. &ldquo SIA' s strategy to maintain a young, technologically advanced fleet of airplanes provides SIAEC with opportunities to gain expertise in maintaining new aircraft types and win third-party maintenance contracts,&rdquo he adds. SIAEC is also likely to enjoy long-term demand growth from its maintenance, repair and operations (MRO) business given its partnerships with leading original equipment manufacturers (OEMs) such as GE, Rolls-Royce and P& W. Over the next two years, the analyst estimates the group&rsquo s core net profit to see a compound annual growth rate (CAGR) of 13%, due mainly to new engine and component capabilities. The growth is also likely to come from the ramp-up of SIAEC&rsquo s Subang base maintenance from 4QFY2025, as well as new MRO and line maintenance joint ventures (JVs) in Cambodia and Malaysia. In addition, Sum believes the group should see improved momentum as IT and gestation costs taper its engine and components segment turning profitable as well as expanded capacity at Singapore Aero Engine Services Pte Ltd (SAESL) &ldquo Near-term operating indicators remain supportive, with steady traffic growth at Changi and continued strength in engine aftermarket,&rdquo says the analyst. Finally, SIAEC, which has $485 million net cash and enjoys &ldquo solid&rdquo cash generation, has the flexibility to either enhance shareholder returns, pursue selective mergers and acquisitions (M& As) and deepen its collaboration with Air India as it scales its in-house MRO capabilities. Despite the upgrade, Sum has lowered his target price to $3.80 from $4, based on a lower P/E multiple of 21 times from 24 times previously. The lowered P/E peg reflects a sector-wide multiple compression, he says. For FY2026 ended March 31, Sum estimates SIAEC&rsquo s revenue and net profit to come in at $1.48 billion and $172.6 million respectively. The group will announce its full-year results after trading hours on May 11. Shares in SIAEC closed 16 cents higher or 5.1% up at $3.30 on May 4. |
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| 05-May-2026 10:21 |
SIA
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SIA
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SIA to use Starlink for in-flight WiFi from 2027 on Airbus A350, A380 The upgrade is set to be completed by 2029 across its A380s and some A350s [SINGAPORE] Singapore Airlines (SIA) is set to roll out Starlink&rsquo s low-Earth orbit satellite-based WiFi service on its long-haul and ultra-long haul Airbus A350s and Airbus A380s, it said on Monday (May 4). The upgraded Internet will be launched on the flag carrier&rsquo s fleets from the first quarter of 2027, with completion expected by the end of 2029. Its Boeing 777-300ER fleets, which also fly long-haul routes, are not slated for the upgrade. Starlink WiFi offers &ldquo multi-gigabit&rdquo connectivity to the aircraft, allowing for faster Internet access in the air that can also support video streaming, social media content sharing, gaming and large file sharing. Passengers will also have &ldquo seamless connectivity from take-off to landing&rdquo , said SIA. Unlimited onboard WiFi will be provided for SIA passengers in suites, first class, business class, alongside PPS Club and KrisFlyer members. Starlink is a satellite Internet constellation operated by private American space company SpaceX. It uses more than 10,000 satellites in low-Earth orbit to deliver internet connectivity, which allows it to offer in-flight WiFi areas where current, traditional Wi-Fi coverage is lost. Ookla, provider of Internet speed test website Speedtest, on Apr 28 noted that among the airlines that had more than 50 per cent consistency in in-flight connectivity, &ldquo nearly all&rdquo were using Starlink for in-flight WiFi. SIA&rsquo s current WiFi connectivity clocked in at 21 per cent, compared with Starlink-using airlines such as Qatar Airways, which had an 81.6 per cent connectivity. The analysis was based on a threshold of 25 megabits per second (Mbps) download speed and a 3 Mbps upload speed as the &ldquo practical requirements for digital productivity and entertainment&rdquo , said Ookla. |
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| 05-May-2026 10:20 |
Olam Group
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Olaim Group Financial Results
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Hussaini Saifee of Maybank Securities initiates coverage on Olam with ' buy' call and $1.60 target price Hussaini Saifee of Maybank Securities has initiated coverage on Olam International with a " buy" call and $1.60 target price, on the premise that the agri-food company is " one of the most compelling restructuring and management reset stories within the Temasek portfolio." " Olam is moving from a complex agri conglomerate towards a much cleaner, scaled global ingredients platform, Olam Food Ingredients (ofi), while potentially unlocking more than $5 billion of capital along the way," flags Saifee in his May 4 report. Around $4 billion in value realisation has been announced: $3.4 billion from sale of Olam Agri, and another $0.7 billion or so from other divestments including its IT services unit Mindsprint. If fully distributed as a special dividend, Saifee figures that Olam shareholders will enjoy a yield of 18%. ofi, following the restructuring, should remain Olam' s core business with around $1.1 billion in ebit but yet is valued by the market at only 2.0&ndash 2.5x EV/EBIT, versus 8&ndash 15x for global peers, which looks closer to distressed pricing than a fair value, says Saifee. " Olam is becoming leaner, simpler and more cash-return focused. Temasek portfolio precedents suggest strategic restructuring can unlock value and drive rerating," says Saifee. Olam shares as at 11.26 am, gained 10.78% to trade at $1.13. It is up 18.95% year to date. |
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| 05-May-2026 10:20 |
Venture
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2022 Venture Corporation - A Year Of Recovery
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CGSI&rsquo s William Tng boldly raises Venture Corporation target to $21.78 Analyst William Tng from CGS International (CGSI) has reinforced his optimism in technology solutions provider Venture Corporation by maintaining his &ldquo buy&rdquo call with a higher target price of $21.78, representing an increase of $4.74 from the previous mark of $17.04. Based on the company&rsquo s 10-year historical seasonality trend with the first quarter contributing 22% of earnings on average, Tng thinks that Venture&rsquo s declining quarterly earnings since 4QFY2022 could bottom-out at $54.1 million in 1QFY2026, representing 3% y-o-y and 7% q-o-q quarterly decreases. Tng&rsquo s confidence stems from Venture&rsquo s annual report issued on April 2 which shares how the company has been &ldquo strengthening&rdquo foundations for the next phase of growth as it &ldquo advances momentum&rdquo across multiple technology domains and deepens strategic customer collaborations. For the networking and communications domain, Venture shared that it is ramping up activities in the hyperscale data centre space and expanding its network connectivity solutions. Meanwhile in the test and measurement segment, management guided that there has been new product wins and market share gains with customers. On the semiconductor-related equipment front where Venture is a leader in high value-add and complex printed circuit board assembly modules for customers such as Nasdaq-listed Lam Research, the company is &ldquo making progress&rdquo . For the lifestyle consumer domain, Venture states that it is working closely with a customer to co-develop next generation products. Tng expects recovery in the lifestyle consumer and test and measurement segments to support a stronger 2HFY2026 performance. Forecasting earnings per share to grow by an average of 8% from FY2026 to FY2028, he increases his TP to $21.78, based on 23 times of FY2027 forecasted P/E. He adds that the EQDP rally is fueling this valuation which is three standard deviations above the 20-year average (2007 to 2026 forecasted). Rerating catalysts for Tng include new products launched by customers which increase profitability and better-than-expected revenue outlook as companies diversify their production from China to Malaysia, creating more revenue opportunities for Venture. Shares in Venture are up by 66 cents, or 4%, to $16.86 as at around 11.07 am on May 4. Earlier, Tng had made &ldquo bold, on-point&rdquo calls on AEM Holdings and ISDN Holdings. |
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| 05-May-2026 10:19 |
OCBC Bank
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ocbc buyers fight back from the shortists
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OCBC confirms acquisition of HSBC Indonesia for a premium of $480 million Oversea-Chinese Banking Corporation (OCBC) has announced that its Indonesia subsidiary, PT Bank OCBC NISP Tbk (OCBC Indonesia), has on May 4 entered into an agreement with PT Bank HSBC Indonesia (HSBC Indonesia) to acquire the assets and liabilities of its retail banking and wealth management operations in Indonesia &ndash International Wealth and Premier Banking (IWPB Indonesia). The transaction involves the transfer of IWPB Indonesia&rsquo s assets and liabilities to OCBC Indonesia. The total AUM to be transferred is $6.6 billion, comprising $4.3 billion in customers&rsquo investments in mutual funds and bonds as well as insurances, and customer deposits of $2.3 billion. The loan book of $0.3 billion will also be transferred. Since the liabilities are more than the assets, the net asset value (NAV) is likely to be a negative number. OCBC will pay a premium of around $480 million, which is subject to the adjustment mechanisms in the agreement. The purchase consideration will be finalised after completion. IWPB Indonesia is built around a premium, global financial service proposition serving retail and wealth customers offering a full suite of banking products and services and tailored wealth management. This portfolio comprising customer deposits, investment products covering bonds, mutual funds and insurance, credit cards and retail loans immediately deepens OCBC Indonesia&rsquo s wealth management business. Excluding one‐ off transaction costs, the transaction will be earnings accretive to OCBC after completion, which is expected in 2Q2027. IWPB Indonesia is one of the largest foreign-owned retail banking and wealth management platforms in Indonesia and has consistently been recognised as a top-tier wealth manager in Indonesia. It serves 336,000 individuals across its 26 branches. IWPB Indonesia&rsquo s customer base is highly complementary to the OCBC Indonesia franchise, says OCBC, giving it considerable scope to grow its wealth business. Upon completion of the transaction, it is expected to increase OCBC Indonesia&rsquo s AUM by 25% and grow the credit card balances by more than 150%. The transaction will enhance OCBC Indonesia&rsquo s wealth management talent pool by adding about 1,300 staff. &ldquo This acquisition in Indonesia fits well into our ' Next Frontier' strategy under the franchise shift of building up our Indonesia franchise. It follows our successful 2024 acquisition and integration of PT Bank Commonwealth Indonesia, in further expanding our market penetration in Southeast Asia' s largest economy. Indonesia is a long-term commitment, and a key growth market,&rdquo says Tan Teck Long, group CEO, OCBC. &ldquo The large deposits base of $2.3 billion with sizeable Casa balances is attractive in providing stable low-cost funding for our Indonesian franchise and significant opportunities for wealth management. We are excited about the scale and synergy that this high-quality portfolio brings to the group as OCBC, Bank of Singapore and Great Eastern come together to deliver the whole-of-wealth proposition.&rdquo |
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| 05-May-2026 10:16 |
Trendlines
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Time to buy !
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Trendlines portfolio company Vensica Medical&rsquo s needle-free bladder therapy progress into Phase two of clinical trial The Trendlines Group (Trendlines) (SGX:42T) announced that its portfolio company, Vensica Medical, has secured the clearance from the US Food Drug Administration (FDA) on its investigational new drug (IND) application to initiate a Phase two clinical trial of ViXe. According to Trendlines, the study will evaluate Vensica&rsquo s Vibe ultrasound-based, needle-free drug delivery system in combination with Xeomin for the treatment of overactive bladder (OAB). Trendlines believes that the Phase two study will enrol approximately 210 patients across United States and Europe and this milestone triggers a contractual development milestone payment from its strategic partners. Vensica Medical is supported by numerous investors and strategic partners, including Merz Pharma, Laborie, Israel Biotech Fund and Trendlines. &ldquo We believe ViXe has the potential to overcome the barriers of needle-based delivery and deliver meaningful impact in urologic healthcare,&rdquo says Vensica Medical&rsquo s CEO, Avner Geva. &ldquo This clearance represents a key milestone in Vensica Medical&rsquo s development and follows a number of key developments recently in our portfolio, emphasising the progress and maturity of our companies,&rdquo adds Haim Brosh, CEO of Trendlines. Shares in Trendlines closed flat at 6.2 cents on May 4. |
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| 04-May-2026 10:05 |
AEM SGD
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AEM (+Venture, UMS) the most AI-relevant SGX stock
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JP Morgan takes some profit in AEM Holdings following substantial stake build up JP Morgan, which has rapidly built a substantial stake in AEM Holdings in a series of transactions since the middle of March, has partially taken profit, as the share price of the chip tester reaches new highs. On April 29, JP Morgan sold nearly 1.58 million shares for around $8.6 million, which works out to an average of around $5.46 per share. Following which, the US bank is left with around 22.24 million shares, equivalent to 6.99%, down from 7.565%. The filing for April 29 was disclosed on May 3 and it is not yet clear if JP Morgan has made further transactions since then. AEM, which closed at $7.35 on April 30, is on a tear following a wave of upgrades by analysts, cheered by how it is both poised to win new orders from its existing key customer and is also well positioned to win significant new orders from other new customers. JP Morgan first emerged as a substantial shareholder of AEM Holdings on March 16, when filings indicated that it paid $3.35 on average for 555,000 shares, bringing its interest to 5.19%. Since then, it made a series of trades, at times trimming, but on aggregate increased its position as AEM ran up strongly. On March 17, JP Morgan sold 910,200 shares at $3.53 each but also bought 22,300 shares via a prime brokerage arrangement. On March 26, it paid an average of $4.49 each for just over 1.94 million shares but also sold 147,800 shares. On April 10, it paid an average of $4.69 for another 1,070,900 shares. On April 20, it paid an average of $4.86 for another 115,600 shares. |
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| 04-May-2026 10:04 |
ST Engineering
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ST Engg
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More than a defence contractor &ndash ST Engineering&rsquo s Vincent Chong is ready for the next lap To see the group as a mere defence proxy cashing in on conflict misses the plot entirely [SINGAPORE] It is easy to look at ST Engineering&rsquo s rising share price and assume that the defence contractor is simply riding a wave of global instability amid growing military budgets and heightened geopolitical tensions. Indeed, ST Engineering is currently the best performer among the Straits Times Index (STI) blue-chip stocks in the year to date. The stock has generated a total return &ndash with dividends reinvested &ndash of 28.4 per cent since the start of 2026, extending the strong momentum it built up last year. This dwarfs the 7.1 per cent total return of the STI over the same period. But to see ST Engineering as a mere defence proxy cashing in on conflict misses the plot entirely. &ldquo The defence business is core to us,&rdquo said ST Engineering group president and chief executive officer Vincent Chong. &ldquo But two-thirds of our group revenue comes from very strong global businesses in our commercial aerospace and smart city domains.&rdquo The real engine behind the group&rsquo s record operating profit and S$33.2 billion order book, Chong noted, was built years ago. The actual heavy lifting started during the darkest, quietest days of the Covid-19 pandemic, when the company decided to rip up its playbook and completely rewire how it does business. The Covid crucible For a company that drew a large chunk of its group revenue from aviation and aerospace, the Covid-19 pandemic &ndash during which aeroplanes were grounded and borders shut &ndash was a brutal period. But instead of going into survival mode &ndash hoarding cash and cutting costs to the bone &ndash ST Engineering went the other way and started a massive structural pivot. It tore down the old internal walls separating its land, sea, air and electronics divisions, and reorganised itself into customer-centric units. &ldquo During Covid, we made a conscious decision to proceed with our reorganisational changes because we want to be ready when the market recovers,&rdquo Chong recalled. &ldquo We also invested in new capacities for aerospace in the depth of Covid, so that we can be ready for the upturn.&rdquo It was a big gamble that paid off. When the skies reopened and the global economy restarted, the group hit the ground running. It brought in S$18.7 billion in new contracts in 2025. Recently, it announced an additional S$4.8 billion in new contracts for the first quarter of 2026 alone. This first-quarter haul added immense weight to an already bulging order book and provided clear revenue visibility. Flying high Bearing the most fruit from ST Engineering&rsquo s Covid-era restructuring might be the commercial aerospace division, which secured S$1.7 billion of the new first-quarter contracts. Instead of just fixing planes &ndash the group remains a leader in airframe maintenance, repair and overhaul &ndash it has moved upstream and now also manufactures the parts that go into them. Through acquisitions, it is a key original equipment manufacturer for engine nacelles &ndash the aerodynamic casings that house jet engines &ndash specifically for the popular Leap-1A engines. This shift from mechanic to manufacturer changes the profit profile entirely. Operating expenses as a ratio of revenue dropped to an all-time low of 10.2 per cent in 2025, down from 10.6 per cent the year prior and about 13 per cent some years ago. &ldquo We do expect improvements in Ebit (earnings before interest and taxes) margins,&rdquo Chong said. The way he sees it, successful execution of ST Engineering&rsquo s strategy not only means pushing for topline growth, but also looking at the group&rsquo s productivity and efficiency. The goal is to carve out another S$1 billion in cost savings over the five-year period from 2024 to 2029, purely to stay ahead of inflation. &ldquo We have our target of about S$200 million a year and every year, we have been beating those targets,&rdquo Chong said. Even as a defence contractor &ndash Chong prefers the term &ldquo strategic defence partner&rdquo &ndash ST Engineering plays a different game. In the first quarter of 2026, it secured S$2.4 billion for its defence and public security segment. This includes its entry into the Qatar defence market with a 315 million euro (S$470 million) deal, and a S$600 million subcontract to build eight patrol vessels for the Kuwait navy. Under ST Engineering&rsquo s asset-light model, it designs the ships, build a few in Singapore, and partners local yards to build the rest. This keeps capital costs low and fosters local goodwill. Wiring South-east Asia and beyond While aerospace and defence grab the flashy headlines, the urban solutions segment is quietly building up the bank. &ldquo Today, roughly about 50 per cent of the world population live in urban cities. Through 2050, about two-thirds of the projected growth in world population will be in urban cities,&rdquo Chong pointed out. In the first quarter of 2026, the urban solutions and satcom segment brought in S$700 million, snagging deals for passenger information systems for Taiwan&rsquo s Kaohsiung MRT Yellow Line and smart road projects in the Middle East. The group is exporting its smart mobility and traffic management systems &ndash honed on the congested streets of Singapore &ndash to places such as Bangkok and the Middle East. It upgraded its status in Taiwan from a subcontractor to a tier one prime contractor for major rail projects. For investors worried about lumpy defence contracts, this segment offers steady, predictable growth. Referring to major mobility projects, Chong is highly optimistic, saying: &ldquo By 2028, those revenues will double (from 2024 levels). By 2030, they will triple.&rdquo Space bump The pivot, though, has seen some bumps. The group took a massive S$689 million impairment hit recently on its satellite communication unit, battered by the sudden rise of low-earth orbit satellites. Even as underlying profit for the full year ended December climbed 21 per cent to a record S$850.8 million, from S$702.3 million in FY2024, the impairment slashed FY2025 earnings to S$462.8 million. Full-year revenue was up 9 per cent to S$12.3 billion. Chong is pragmatic but determined. &ldquo We are evaluating strategic options,&rdquo he said. &ldquo But at the same time, we are also doubling down on our turnaround efforts.&rdquo Meanwhile, the group is also reinforcing its commitment to earth observation satellites, designing and launching its own systems to sell the valuable data collected. &ldquo With the formation of the National Space Agency of Singapore, we believe that the growth trajectory will continue,&rdquo Chong said. To power all this, ST Engineering is undergoing a quiet talent revolution. It employs about 2,000 artificial intelligence engineers. Chong plans to increase that to 5,000 in the next five years. The company uses AI as a force multiplier in its engineering and defence products. When a company builds ships, fixes jet engines and designs smart toll gates, the market usually slaps it with a conglomerate discount. People assume these large empires are bloated and wasteful. Chong rejects the label flat out. &ldquo We are not a conglomerate per se, because conglomerates typically have businesses that run on their own with no particular synergies between them.&rdquo He points to a shared group technology office creating dual-use tech modules. An AI algorithm developed for a military command centre can be tweaked to manage a smart city&rsquo s power grid. To ensure that these divisions talk to each other, ST Engineering rewards collaborations financially. Senior leaders face peer appraisals based on how well they work across units. After a decade at the helm, Chong looks at his order book and the group&rsquo s target to hit S$17 billion in revenue by 2029 with quiet confidence. The heavy lifting of the 2020 pivot is done: the machine is built now, it is time for execution. &ldquo The best is yet to come for ST Engineering,&rdquo Chong said. &ldquo I really think so.&rdquo |
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| 04-May-2026 10:03 |
Addvalue Tech
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Addvalue Tech
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Addvalue should rethink value-unlocking move The business it plans to spin off may garner a lofty valuation on Nasdaq, but its own shares may be plagued by a holding company discount [SINGAPORE] When Addvalue Technologies said on Mar 13 that it had formed a working team to realise the full potential of its Inter-Satellite Data Relay System (IDRS) business, it appeared to be embracing the shareholder value-focused mindset that the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have been trying to encourage through their Value Unlock programme. It was not long before the working team came up with an actual plan. Before the market opened last Monday (Apr 27), the satellite communications and wireless connectivity group said an application had been submitted to SGX on a proposed spinoff and listing of its IDRS business on Nasdaq. Addvalue said that it intends to maintain a 51 per cent stake at least in the separately listed unit, and that SGX had concurred with its view that the move would not amount to a chain listing. The immediate reaction in the market was unequivocally positive. Addvalue&rsquo s shares rocketed on very strong trading volume, ending the day 36.4 per cent higher at S$0.161. Its shares closed on Thursday at S$0.143, up 21.2 per cent over the holiday-shortened week. Some investors might have misgivings about the longer-term implications of Addvalue&rsquo s value-unlocking strategy, though. While the IDRS business may garner a lofty valuation on Nasdaq, it is unclear whether the market value of Addvalue&rsquo s stake in this separately listed entity will always be fully reflected in its own share price. In my view, Addvalue should explain how it would address any potential holding company discount that opens up, and how it would ensure that its own shareholders reap the full benefit of the long-term growth potential of the separately listed IDRS business. Addvalue should also spell out why its shareholders would not be better off if the IDRS business remained a wholly owned unit of the group &ndash especially in light of the very strong performance of its shares even before the IDRS spinoff was mooted, and the ongoing effort to revitalise the local market. More relevant than ever This column suggested last month that Addvalue is one of the few Singapore-listed companies with a business profile overtly aligned with today&rsquo s geopolitical currents. The largest contributor to the group&rsquo s revenue during the six months to Sep 30, 2025, was its advanced digital radio business &ndash which is riding on demand for unmanned aerial systems, phased array radar used in the aerospace and defence sectors, multi-orbit mobile satellite networks, and complex test and measurement instruments. The group&rsquo s second-largest revenue generator was its space connectivity division, which encompasses its IDRS business. This business enables on-demand data communication with low earth orbit satellites. With the imminent listing of SpaceX, the intensifying US-China space race, and rising defence spending around the world, Addvalue has arguably never been more relevant to investors. For the six months to Sep 30, 2025, Addvalue reported a 53.6 per cent year-on-year increase in revenue to nearly US$8.8 million. Its earnings came in at nearly US$2 million, versus less than US$100,000 for the corresponding six-month period the previous year. The group&rsquo s space connectivity division achieved a 64.7 per cent increase in revenue to US$3.2 million during the period, while its advanced digital radio division&rsquo s revenue rose 76.6 per cent to more than US$5 million. On Apr 28, Addvalue said its space connectivity division had secured further new orders worth US$2.9 million from three clients, including one new account. This was on top of the US$13.6 million worth of new orders for IDRS terminals previously announced since November last year, Addvalue said. Together with the new orders, the group&rsquo s total order book expanded to US$24.9 million. This stream of new orders, and the company&rsquo s improving profitability, have not gone unnoticed by the market. Even before the spinoff announcement on Apr 27, Addvalue&rsquo s shares had climbed 66.2 per cent since the beginning of the year. Including the strong gains last week, its shares are up 101.4 per cent so far this year. Holding company discount? The way I see it, Addvalue&rsquo s proposed spinoff and listing of its IDRS business on Nasdaq are premature at best. Even after the strong rally in its shares, the company is still something of a minnow, with a market capitalisation of only S$526.7 million. While a separate listing for IDRS business would enable it to raise equity capital directly and pursue mergers and acquisitions, the move could also dilute investor interest in Addvalue&rsquo s own shares. This could result in a significant holding company discount &ndash which has plagued a number of companies that own major stakes in separately listed businesses. For now, the interests of Addvalue&rsquo s shareholders might best be served by the group retaining full ownership of both its key revenue drivers, and putting more resources towards engaging analysts and investors about its growth potential as a combined entity listed in Singapore. With the implementation of the slew of recommendations by the Equities Market Review Group, the conditions for companies like Addvalue to thrive in the local market are now falling into place. Last week, MAS and SGX responded to feedback gathered through public consultations on the introduction of the new Global Listing Board (GLB), which will serve as a dual-listing bridge between SGX and Nasdaq. Under the initiative, the GLB will adopt rules and processes harmonised with Nasdaq, in order to enable companies with market capitalisations of S$2 billion or more to obtain a dual listing with a single prospectus. Supporting demand for potential listings on the GLB is the Equities Market Development Programme, which is in the process of allocating S$6.5 billion to fund management firms with a strong focus on Singapore-listed companies. This may kick-start a virtuous circle of rising demand for, and supply of, high-quality dual-listed stocks that help to further enliven the whole market. Under the circumstances, Addvalue should probably shelve its proposal to spin off one of its most exciting business divisions. In a couple of years, the higher valuation it is hoping to achieve with a separate Nasdaq listing of its IDRS business may well be achieved anyway &ndash by simply keeping the whole group intact and listed in Singapore. |
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| 04-May-2026 10:02 |
CapLand IntCom T
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CICT - New Directions Together
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CICT&rsquo s Tan Choon Siang marks first year with billion-dollar deal streak Acquisition of Paragon and divestment of Asia Square Tower 2 follow CapitaSpring deal and ION Orchard acquirement [SINGAPORE] Since taking the reins a year ago, Tan Choon Siang, chief executive of CapitaLand Integrated Commercial Trust&rsquo s : C38U -1.26% (CICT) manager, has kept the real estate investment trust (Reit) firmly in motion, stepping up its capital recycling game with a string of mega deals as it reshapes its portfolio. Its latest moves &ndash the S$3.9 billion acquisition of Paragon and divestment of Asia Square Tower 2 for S$2.5 billion &ndash come on the heels of last year&rsquo s CapitaSpring deal and its ION Orchard acquisition in 2024. CICT purchased the remaining 55 per cent interest in the Grade A office building for S$1 billion, and the 50 per cent stake in ION Orchard and ION Orchard Link at S$1.85 billion. Over the past year, CICT units have risen about 10 per cent to S$2.36 as at market close last Thursday (Apr 30). The largest Reit in Asia-Pacific markets, its market capitalisation now stands at around S$18 billion. Distribution per unit (DPU) in FY2025 was up 6.4 per cent at S$0.1158, from S$0.1088 the previous year. &ldquo (But) three years is not a pattern,&rdquo Tan said with a chuckle. &ldquo If we do see an asset that we like, and we are able to fund it and buy it at a price that makes sense for unitholders, we will definitely take a look,&rdquo he said in an interview with The Business Times. &ldquo It just happens the environment is conducive and in the right market cycle (with interest rates easing). And I think sometimes, you have to be lucky.&rdquo In the case of Paragon, &ldquo the whole thing came about firstly because we were able to unlock value from Asia Square Tower 2 and monetise the asset&rdquo , said Tan. Proceeds from the divestment, together with a private placement that raised around S$750 million and some S$700 million in debt, will fund the acquisition. The manager approached Cuscaden Peak with an &ldquo unsolicited offer&rdquo earlier this year, after it had some interest in divesting the office building. &ldquo Without that, the second part of the equation would not have happened.&rdquo For one thing, Tan noted that acquiring &ldquo valuable&rdquo freehold assets in Singapore is challenging as they typically trade at tighter yields. Strong interest in core Central Business District (CDB) offices also supported the divestment. Asia Square Tower 2 is a &ldquo very high-quality (core) asset&rdquo that has always performed &ldquo very strongly&rdquo for the Reit, with stable income and high occupancy. &ldquo We&rsquo ve owned it since 2017, (adding) value along the way, and this is an opportune time to unlock value,&rdquo said Tan. The trust&rsquo s last three acquisitions have been for &ldquo very rare, high-quality prime Singapore commercial assets&rdquo . At Paragon, around 30 per cent of space is for office use, of which roughly 83 per cent comprises medical suites. &ldquo That medical space is a very strong and defensive sector,&rdquo said Tan, citing Singapore&rsquo s ageing population and rising medical tourism. After raising CICT&rsquo s private placement to S$750 million, the Paragon deal is now expected to be 1.7 per cent accretive to DPU, down from the earlier forecast of 2.1 per cent. This is &ldquo still very healthy&rdquo , Tan said, given that it is from a single transaction. Gearing eased to 38.7 per cent, from the previously projected 39.2 per cent. &ldquo Generally, if you&rsquo re able to get anything north of 1 to 1.5 per cent, actually that&rsquo s very good appreciation,&rdquo he added. &ldquo So we are quite happy with (the accretion). It is sufficient without sacrificing balance sheet strength.&rdquo Balancing disruption and value When Cuscaden Peak proposed privatising Paragon Reit in 2025 &ndash when the mall was held as a 99-year leasehold property by the trust &ndash it cited plans for a major overhaul needed to improve the mall&rsquo s standing in order to compete with other prime retail assets. The asset enhancement initiative (AEI) was expected to take up to four years, with capital expenditure of S$300 million to S$600 million. Whether such a major AEI is still on the cards will be subject to fresh evaluation, CICT has said. While Paragon is seen as a trophy asset with its current full occupancy and strong luxury tenants, its greater value lies in the freehold title of the prime Orchard Road site on which the mall stands. With other asset owners on the retail strip such as Frasers Property and Hotel Properties Ltd eyeing redevelopments in line with a government plan to rejuvenate Singapore&rsquo s shopping street, is a rebuild in the pipeline? &ldquo Redevelopment is the optionality&hellip because when the tenure dwindles down to, say, 50 or 60 years, that&rsquo s when you will be really thankful that you own a freehold title,&rdquo he said. Any AEI would require careful consideration. As the new owner, CICT has yet to have established relationships with Paragon&rsquo s tenants, and the works would be disruptive. &ldquo It disrupts not just ourselves in terms of cash flows, (but also) tenants&rsquo operations,&rdquo he said, especially those who have already invested &ldquo significant capital expenditure&rdquo into their stores. Over the past year, several of the mall&rsquo s luxury brand tenants have significantly expanded their footprint in the property. Bottega Veneta in December 2025 opened a two-storey Singapore flagship, while Balenciaga and Tom Ford opened new duplex spaces earlier. Potential AEIs would therefore be phased, focusing on improving internal and external connectivity, visitor flow and overall efficiency, said Tan. CICT has also said that with 30 per cent of leases up for renewal by the end of the year, there will be the possibility of positive rental reversions as leases roll over, and the Reit will look at refreshing the tenant mix. &ldquo We have to go in and take a look (once the transaction completes),&rdquo he added. &ldquo We can&rsquo t say that Paragon is not doing well as it is, so I don&rsquo t necessarily think it requires an overhaul&hellip We&rsquo re probably tweaking at the margins.&rdquo While the Reit&rsquo s major acquisitions over the last three years have brought inorganic growth, CICT is undertaking AEIs across several properties to drive organic growth. On Apr 24, the manager announced a S$160 million asset enhancement at Plaza Singapura and The Atrium@Orchard. The works will be carried out in phases from Q3 this year to Q4 2028, with the mall remaining open and operational throughout. Most of its existing tenants will not be affected, though &ldquo there will be some turnover&rdquo in areas affected by the AEI, Tan said. The manager has also secured &ldquo good commitment&rdquo from new tenants, with the revamp also aimed at bringing in new brands. All in, the Reit manager has announced AEIs for seven properties. Three have been completed at a cost of around S$325 million, while another four are under way or will start this year, costing a total of S$246 million. At Clarke Quay, however, a S$62 million AEI completed in April 2024 has not quite had the desired effect. The rebranded CQ@Clarke Quay has seen occupancy fall to 80-plus per cent recently, with business said to be slow for tenants as the property pivots from a nightlife hub to a &ldquo day and night space&rdquo . &ldquo Clarke Quay is tough,&rdquo Tan acknowledged, but it may be &ldquo premature to think Clarke Quay at its current state is the norm&rdquo . He sees footfall improving in the near future with the completion of the nearby Canninghill Piers integrated development. The City Developments Ltd and CapitaLand mixed-use project holds almost 700 residential units as well as two hotel properties. Growth drivers Over the past year, the trust&rsquo s average rental reversion was about 6 to 7 per cent. This was even higher in the prior year in the high single digits. With rental reversions calculated based on the average incoming rent of a new lease versus the outgoing rent of expiring leases, &ldquo if I have a rental reversion of 6 to 7 per cent, I can still benefit from a yearly growth of around 2 to 3 per cent every year for the next three years&rdquo , Tan said. This is &ldquo very reasonable&rdquo in a market with inflation of around 1 to 1.5 per cent, and these are &ldquo hardly numbers that will drive someone out of business&rdquo , he added. What else might be in the pipeline for CICT? For one thing, its sponsor&rsquo s development arm CapitaLand Development owns a 49 per cent stake in Jewel Changi Airport, a showcase mall that draws both tourists and local shoppers. While Jewel is a &ldquo great asset&rdquo that is &ldquo doing very well&rdquo , Tan said it is unclear &ldquo if it&rsquo s immediately ready for injection into the Reit, or even eventually&rdquo . &ldquo We believe in the Singapore growth story,&rdquo he said, pointing to the Republic&rsquo s ever-growing population and tourism industry. The real estate market also remains limited. &ldquo It&rsquo s complicated,&rdquo he quipped. As a fund manager, CICT is always evaluating whether to hold or sell its assets, said Tan. &ldquo If you have a need for capital, because you need to buy something, then that gives you an even greater incentive to execute a divestment. But if you have no immediate need for funding&hellip then you don&rsquo t have to rush these things.&rdquo Currently, CICT has a debt headroom of about S$700 million to S$800 million. Bukit Panjang Plaza was divested since the manager prefers to be the &ldquo dominant mall&rdquo in a given area. Also in CICT&rsquo s pipeline is an upcoming mall within a massive mixed-use development at Hougang Central. The trust will develop and fully own the commercial component, spanning about 300,000 square feet in net lettable area. An 835-unit residential component is being built by UOL and CapitaLand Development. Total development cost is estimated at around S$1.1 billion. Tan said undertaking such a large and complex greenfield project was not in CICT&rsquo s &ldquo natural DNA&rdquo . But the Hougang parcel was &ldquo very unique&rdquo given its sizeable retail component and strong connectivity, with two MRT stations and a bus interchange, alongside private residences. In comparison, the retail portion of most integrated developments is typically limited to a podium. &ldquo So it&rsquo s not so interesting for us,&rdquo he said. &ldquo But (this) is a real mall that is bigger than Junction 8.&rdquo &ldquo I don&rsquo t think it&rsquo s something that we will repeatedly do,&rdquo he added. &ldquo Buying completed core assets is something that is more in our DNA.&rdquo Although the manager will definitely &ldquo look at things that come to the market&rdquo , including the array of prime CBD office assets now up for sale, Tan said it will remain disciplined in its acquisition and funding approach, stressing that any deal must be accretive and enhance the trust&rsquo s overall portfolio without &ldquo adding stress to (its) balance sheet&rdquo . |
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| 04-May-2026 10:01 |
YZJ Maritime
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YZJ Maritime
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Ho of DBS reiterates ' buy' on Yangzijiang Maritime following order for ten new vessels Ho Pei Hwa of DBS Group Research has reiterated her " buy" call and 88 cents target price for Yangzijiang Maritime Development, following news that the company is expanding its fleet with a recent new order. On April 27, the company announced it has signed orders for ten new eco-compliant vessels, including tankers and bulk carriers. The vessels, to be built by third-party Chinese yards, can run via methanol. The vessels will be financed through a mix of equity co-investments and debt, in line with its established capital deployment framework. Deliveries of these vessels are scheduled from 2027 to 2029. With this latest order, the company' s fleet will expand to 105 vessels including 53 under construction. The latest order reinforces the group&rsquo s growth trajectory and enhances earnings visibility, says Ho, referring to the expanding fleet. " The diversified vessel mix and eco-compliant designs position the fleet to capture charter demand amid tightening environmental regulations, while supporting premium asset values," says Ho. " The expansion aligns with Yangzijiang Maritime&rsquo s capital-cycling strategy, providing flexibility to monetise assets via chartering, leasing, or pre-delivery resale, sustaining returns and mitigating cyclicality across shipping markets," she adds. The cost of the ten new orders were not disclosed by the company but Ho estimates the value to be around US$550 million. Assuming an average of 85% stake and 40% equity, YZJ Maritime might need to pay around US$45 million per year in 2026-2029. Even so, net gearing should still be manageable at 0.1-0.2x. She estimates the company can enjoy potential earnings accretions of up to US$20 to US$30 million per year from charter income or divestment gains for these 10 vessels. If the vessels can be resold before delivery, that will be a key re-rating catalyst to watch, says Ho. Yangzijiang Maritime Development shares closed at 68 cents on April 30, down 3.57%. |
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| 02-May-2026 12:51 |
iWOW Tech
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IoT solution technology provider
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iWOW Technology to acquire The Gentle Group for a total consideration of $11.2 mil
iWOW announced that it has entered into a sale and purchase agreement for the proposed acquisition of The Gentle Group Pte Ltd and its subsidiary, which is a provider of therapeutic nutrition solutions for seniors.
The existing shareholders of The Gentle Group include its founder, Shen Yiru, impact investment firm OCTAVE Capital, SEEDS, an arm of SG Growth Capital (the investment platform of the Singapore Economic Development Board and Enterprise Singapore), minority shareholders and option holders.
According to iWOW Technology, this acquisition is valued at $11.2 million and is expected to be earnings-accretive over time as the business scales and profitability improves. &ldquo The Gentle Group has demonstrated strong growth, with revenue increasing at a CAGR of approximately 51% from FY2022 to FY2025,&rdquo iWOW adds.
The company mentions that with one in four residents in Singapore expected to be 65 and above by 2030, demand for eldercare solutions is set to surge. Also, Singapore&rsquo s government push for Ageing-In-Place and a more holistic longevity approach to ageing is expected to broaden spending and shift it towards community care.
iWOW Technology believes that this acquisition will position the company in capturing the growth in the longevity economy.
&ldquo Safety earns trust in critical moments, but food builds trust every day. By bringing both together, we are creating a continuous relationship with families &mdash one that allows us to support seniors earlier and more meaningfully across their ageing journeys,&rdquo says Raymond Bo, CEO of iWOW Technology.
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