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UOB KAYHIAN |
UOB KAYHIAN |
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Singapore Exchange (SGX SP) May 26 Trading Activities Remain Strong With Upbeat Growth Across All Asset Classes
Highlights • SGX reported strong May 26 trading statistics, with cash equity SDAV and derivatives DAV rising 79.4% and 26.5% yoy, respectively. • 11MFY26 trading statistics beat our expectation, with total securities value and total derivative contract volume up 32.4% and 13.6% yoy, respectively. • We raise our FY26-28 earnings forecasts for SGX by 8-11%, to reflect the stronger-than-expected operating statistics. We forecast SGX’s FY26 core earnings at S$739m, representing a 21% yoy growth. • Maintain HOLD on SGX, with a higher target price of S$21.70.
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Plantation Inventories Edge Higher As Export Demand Remains Soft
Highlights • MPOB’s May 26 data showed a 5.2% rise in Malaysia’s palm oil stockpiles at 2.43m tonnes, as the steeper-than-expected decline in exports outweighed a seasonal decline in output. • Malaysia's B15 mandate provides a structural lift to domestic CPO absorption, while a weakening ringgit improves price competitiveness for Indian buyers - both supporting demand heading into the 2H seasonal production peak. • Maintain OVERWEIGHT. Sector picks: SD Guthrie (BUY/Target: RM6.90) and Hap Seng Plantations (BUY/Target: RM2.47).
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| MAYBANK SECURITIES | UOB KAYHIAN |
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Sing Investments & Finance (SIF SP) NDR takeaways: SME growth, stable margins, tech upside
Healthy signs, maintain BUY and SGD2.11 TP MIBG recently hosted a corporate day event with Sing Investment & Finance (SIF), where senior management reiterated its focus on the SME lending sector, prudent cost management, and the adoption of new technologies to capture rising global AI and tech demand. Maintain BUY and TP of SGD2.11, based on 0.95x FY26E P/B, as we believe SIF remains well positioned to benefit from higher-for-longer rates and tech adoption.
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Geely Automobile (175 HK) Geely’s G-ASD 4.0, Super Eva, And Product Premiumisation
Highlights • The Zeekr 8X is able to deliver smooth, human-like autonomous driving through complex Shenzhen streets. • The G-ASD 4.0 cockpit-driving fusion system brings "AI Super Driver" and "AI Super Assistant" together. • Super Eva acts as a full-vehicle AI agent understanding driver intent and emotions. • Geely is confident in its 2026 sales target, supported by upbeat export; and expect margin improvement in 2026, underpinned by: a) stabilised car prices, b) economies of scale, c) premiumisation, and d) globalisation. • Maintain BUY; target price: HK$36.00.
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| LIM & TAN | LIM & TAN |
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SGX Group ($21.70, unchanged) today reported robust trading activity in May amid sustained investor participation, as Singapore’s stock market became Southeast Asia’s largest by market capitalisation and demand for trusted risk-management tools expanded across equities, FX and commodities. Securities market turnover value rose 70% yearon-year (y-o-y) to S$45.8 billion, with securities daily average value (SDAV) climbing 79% to S$2.4 billion – the highest since October 2007. Derivatives traded volume increased 20% y-o-y to 30.5 million contracts, while daily average volume (DAV) gained 27% to 1.6 million contracts, the third-largest on record. While historical performance was robust, we expect June/July’26 trading and placement activities to slow or moderate due to the world cup fever as well as school holidays. With SGX’s valuations looking elevated at 33x PE, 2% yield, 10x book and consensus 1 year target price around current price level, we maintain our HOLD recommendation on SGX.
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The Business Times reported that unitholders of CapitaLand Integrated Commercial Trust / CICT ($2.33, up 5 cent) pressed hard for answers at an extraordinary general meeting (EGM) to approve its proposed S$3.9 billion acquisition of Orchard Road mall Paragon. CICT’s market cap stands at S$18.5bln and currently trades at 19x forward PE and 1.0x PB, with a dividend yield of 4.6%. Consensus target price stands at S$2.70, representing 16% upside from current share price. Despite the numerous questions, we are positive on the long term view of this acqusition as the Orchard Road rejuvenation plan is underway. However in the short term, there might be some gestation costs which might then cause earnings to fluctuate, which might result in share price volatility. In view of potentially hawkish rates due to the ongoing geopolitical situation, we thus have an Accumulate on weakness rating on CICT. |
