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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Lum Chang Creations 1-for-1 bonus issue
■ Lum Chang Creations (LUCC) has proposed a 1-for-1 bonus issue, subject to shareholder approval at an EGM on 25 May 2026. ■ Earlier, LUCC proposed to transfer from the Catalist to the Mainboard of SGX, upon meeting the minimum shareholding spread requirements. ■ With the EQDP momentum, we now value LUCC at 17x FY27F P/E (CY25 sector average P/E, compared with 12x at initiation), leading to a S$1.32 TP.
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Mapletree Logistics Trust 4QFY26 DPU remained stable qoq
■ 4QFY3/26 DPU of 1.819/7.262 Scts was broadly in line, at 24.3%/97.1% of our FY26F forecast. ■ Rental reversion remained at +4.2% (ex-China) while China’s negative reversion trajectory is moderating. ■ Reiterate an Add rating with a lower TP of S$1.48.
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UOB KAYHIAN |
UOB KAYHIAN |
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Mapletree Industrial Trust (MINT SP) 4QFY26: Watershed FY27 With Sizeable Non-renewals
Highlights • Occupancy for data centre portfolio declined 1.2ppt qoq to 88.1% in 4QFY26 due to a tenant downsizing office space at 250 Williams Street in Atlanta. • The three known vacates at San Diego and Hawthorne in California and Alpharetta in Georgia accounted for 4.7% of MINT’s gross rental income. Assuming that the two data centres at San Diego and Alpharetta become vacant, we estimate that occupancy for data centres in North America could ease 11ppt to 75% by 3QFY27. • Maintain HOLD and target price of S$2.07.
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Strategy Alpha Picks: May Conviction Calls
Highlights • Chinese equities rebounded in April, after Trump raised the prospects of a peace agreement with Iran. In addition, the Politburo meeting reinforced calls for stronger macro policy support. The HSI and MSCI China Index climbed 4.0% mom and 3.5% mom, respectively. • We see cautious optimism prevailing in May and downside risks contained as MSCI China Index is now trading at 11.2x 12-month forward PE, close to mean valuation. • We are adding Minth, Shuanghuan Driveline and Trip.com to our BUY list.
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| LIM & TAN | LIM & TAN |
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Frasers Logistics & Commercial Trust / FLCT ($0.97, up 0.01) reported revenue of S$238.9 million and Adjusted Net Property Income of S$167.0 million for 1HFY26, representing increases of 2.8% and 3.6% respectively, from S$232.3 million and S$161.3 million in the first half of FY2025 (“1HFY25”). The year-on-year increases were mainly due to positive rental reversions and annual increment from rent review from AU L&I and EU L&I segments, full contribution from 2 Tuas South Link 1 as acquisition was completed in November 2024, effects of higher average exchange rate (of AUD, EUR and GBP against the SGD) in 1HFY26 relative to 1HFY25. The increase was partially offset by the divestment of 357 Collins Street in September 2025, higher vacancies in ATP and FBP, and higher non-recoverable land taxes for Victoria and Queensland, Australia. 75.0% of 1HFY26 management fees were taken in units (1HFY25: 43.1%). The distribution per unit (“DPU”) for 1HFY26 was 2.95 Singapore cents, representing an annualised distribution yield of 6.6%. The 1HFY26 DPU will be paid on 22 June 2026. FLCT is trading at 0.9x book, 5.5% yield and consensus target price is $1.10, we see opportunities to “Accumulate” the stock on weakness as macro uncertainties persist and interest rate outlook moderates.
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Keppel Ltd ($10.87, unchanged) has announced a proposed transaction to divest its indirect 39% interest in Keppel Merlimau Cogen Pte. Ltd. (KMC), a company that owns and operates a largescale power generation facility on Jurong Island in Singapore. This move is part of Keppel’s broader capital recycling strategy, where it seeks to unlock value from mature assets and redeploy capital into new opportunities. Keppel’s market cap stands at $19.7bln and trades at 20x PE, 1.9x PB and with a yield of 3.2%. Consensus target price stands at $12.94, representing 19% upside from current share price. KIT’s market cap stands at $3.3bln and currently trades at 36x PE, 2x PB and 7.3% yield. Consensus target price stands at S$0.60, representing 11% upside from current share price. We view this transaction as natural, as Keppel Ltd. continues to execute its divestment strategy while Keppel Infrastructure Trust focuses on acquiring stable, income-producing assets; however, we believe Keppel benefits slightly more, and that the divestment is expected to have a positive impact on its financials and enables the company to recycle capital into other projects going forward, and with Keppel’s share price having fallen about 18% from its peak, we maintain an Accumulate rating on Keppel Ltd. |
