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PHILLIP SECURITIES |
UOB KAYHIAN |
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LHN Limited Re-rating the hospitality franchise
▪ LHN announced the eligibility to list its subsidiary Coliwoo Holdings on the Mainboard of the Singapore Exchange. LHN will hold no more than 70% of Coliwoo post listing. In the shareholder circular, the assumed market capitalisation of Coliwoo Holdings ranged from S$257mn to S$359mn, raising S$77mn to S$108mn via new share issuance.
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Pan-United Corporation (PAN SP) From Sustainable Concrete To Sustainable Returns
Highlights • Pan-United, Singapore’s RMC leader, is driving margin gains through integration and digitalisation. • S$430m Changi T5 contract and new capacity underpin growth amid robust public sector demand. • Maintain BUY with a 25% higher target price of S$1.33 (S$1.06 previously).
Analysis • Scale and smarts drive margin resilience. Pan-United Corporation (PanUnited) reinforced its position as Singapore’s leading ready-mix concrete (RMC) supplier, commanding an around 40% market share. In 1H25, revenue rose 4.3% yoy to S$401.1m, supported by higher RMC volumes. Net profit grew 11% yoy to S$20.6m, despite forex losses and higher depreciation. Gross margins expanded 2.8ppt to 24.4%, underpinned by upstream integration and operational efficiencies. Its AiR Digital logistics platform, which optimises fleet productivity and reduces idle time, has been instrumental in sustaining margin gains even amid rising manpower and rental costs.
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LIM & TAN |
LIM & TAN |
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UOL Group Limited ($7.40, down 15 cents) has announced the proposed divestment of all freehold commercial strata lots in KINEX, a retail mall located at 11 Tanjong Katong Road, Singapore. The divestment is being conducted by its direct wholly-owned subsidiaries, UOL Property Investments Pte Ltd and UOL Management Services Pte Ltd, who have entered into sale and purchase agreements with Kinex Times Square Pte. Ltd. and Xiaohong Property Management Pte. Ltd. respectively UOL’s market cap stands at S$6.3bln and currently trades at 17.3x forward PE and 0.5x PB, with a dividend yield of 2.4%. Consensus target price stands at S$8.37, representing 13.1% upside from current share price. We continue to be positive on UOL’s monetization strategy following the likes of many others such as Keppel/Singtel and maintain 2200 a BUY recommendation.
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The Business Times: Mainboard-listed Centurion Corp (S$1.76, down 2 cts) won overwhelming support at an extraordinary general meeting (EGM) on Wednesday (Sep 10), for its planned listing of Centurion Accommodation Real Estate Investment Trust (Reit) and related transactions. At S$1.76, Centurion is capitalized at S$1.5bln and trades at 13.1x forward P/E and 1.2x P/B with a dividend yield of 2.3%. The upcoming capital recycling of mature assets into a REIT will provide valueunlocking opportunities for Centurion and crystallize some of these huge fair-value gains realized over the past 2-3 years. Centurion will likely hold a sizable 45% exposure in the REIT and distribute 5-10% of these units to shareholders through a dividend-in-specie after its AGM in 2026. Maintain “Accumulate on Weakness”. |
| CGS CIMB | UOB KAYHIAN |
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LHN Ltd Exciting growth prospects ahead
■ LHN sustained strong operating momentum in 3Q25 with high occupancy, expanded co-living portfolio, and steady growth across key segments. ■ Coliwoo’s Mainboard listing sets the stage for LHN’s expansion, M&A-driven growth, and potential for enhanced shareholder returns, in our view. ■ Reiterate Add, with a higher TP of S$1.20, as we roll forward our valuation to FY27F, still based on a 10x P/E, in line with its 10-year average.
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Telecommunications – Malaysia 2Q25: Results In Line; Continued Pre-To-Postpaid Migration
Highlights • Broadly, 2Q25 sector earnings came in within expectations, except for Axiata and CelcomDigi. After the 2Q25 results announcement, we cut our earnings forecasts by 6%. • The quarter was characterised by: a) 2% qoq service revenue growth, b) cost discipline, c) encouraging enterprise business pipeline, and d) robust demand for fibre. • Maintain MARKET WEIGHT; catalysts include Axiata’s infrastructure asset monetisation and CelcomDigi’s synergistic savings by 2027. Top picks: CelcomDigi, TIME and Axiata.
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