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CGS CIMB |
UOB KAYHIAN |
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Yangzijiang Financial Holding Spin-off value
■ YZJFH was added to the STI reserve list following the latest semi-annual review changes to the FTSE ST Index Series. ■ We believe the spin-off of its maritime fund will garner greater investor interest in the stock and serve as a key re-rating catalyst. ■ We lift our SOP-based TP to S$1.25 (1.2x CY26F P/BV for its maritime fund and 0.8x CY26F P/BV for remaining business). Reiterate Add.
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Prime US REIT (PRIME SP) Leasing Momentum Pick Up After Summer Holidays
Highlights • Viewings have picked up after the Labour Day long weekend. Notable leasing discussions underway including 121,000sf for a government agency at Park Tower and 39,000sf for a financial services company at VCS1. Portfolio occupancy is expected to recover to 85% by end-25. We assumed a payout ratio of 50% in 2026, 65% in 2027 and 80% in 2028. PRIME provides an attractive yield of 9.6% for 2026 and 12.7% for 2027. P/NAV is depressingly low at 0.36x. Maintain BUY. Target price: US$0.31.
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MAYBANK KIM ENG |
LIM & TAN |
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Malaysia Strategy: 2Q25 wrap Semblance of stabilisation
A better quarter; more surprises among small caps A much better quarter this round with more hits than misses. Downgrades in ratings were largely due to positive stock price action though a handful were operational misses. Banks, consumer, plantation and REITs mostly met expectations. Small-mid caps did better during the quarter with more surprises. Post 2Q25 results, we made minor tweaks to our KLCI earnings growth to 1.5%/8.2% for 2025E/26E; our KLCI YE target stays at 1,660.
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Geo Energy Resources (S$0.425, up 3.5 cts) has announced the proposed acquisitions of TMP and BSM (the “Acquisition”) to complement its business model and further diversify its revenue stream towards logistics and infrastructure services within Indonesia’s energy and commodities market, enlarge the Group’s asset base which will enable future earnings contribution. At 42.5 cents, Geo Energy is capitalized at $601mln and trades at a forward P/E ratio of 8.3x. Price-to-book stands at 0.9x and dividend yield is 3.0%. The acquisition is an interested person transaction due to partial ownership of the two shipping companies by Chairman Mr Melati. This forms part of Geo Energy’s aim to integrate the overall coal transportation chain (road, jetty and barge) for its main TRA coal mine, as well as provide leasing opportunities to other third-party coal operators. Contributions are expected from 2H’26 and to further increase in 2027. Bloomberg consensus TP of S$0.58 represents a potential 35% upside. We maintain “Buy” on Geo Energy. |
| UOB KAYHIAN | MAYBANK KIM ENG |
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Baidu Inc (9888 HK) Kunlun AI Chip As The Key Catalyst For Revaluation
Highlights • Amid US chip ban uncertainties, Baidu Inc's (Baidu) Kunlun chip is wellpositioned to capture emerging AI chip localisation opportunities. Meanwhile, Robotaxi offers significant growth potential, with Baidu emerging as the global leader in driverless commercial ride-hailing. • In cloud, Baidu differentiates itself through its full-stack AI capabilities and a resilient, recurring software revenue stream. • Upgrade to BUY with a higher target price of HK$135.00 (US$150.00)
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Malaysia Strategy: 2Q25 wrap Semblance of stabilisation
A better quarter; more surprises among small caps A much better quarter this round with more hits than misses. Downgrades in ratings were largely due to positive stock price action though a handful were operational misses. Banks, consumer, plantation and REITs mostly met expectations. Small-mid caps did better during the quarter with more surprises. Post 2Q25 results, we made minor tweaks to our KLCI earnings growth to 1.5%/8.2% for 2025E/26E; our KLCI YE target stays at 1,660.
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