Top Stories
Company Results | Keppel DC REIT (KDCREIT SP/BUY/S$2.30/Target: S$2.95)
Rent reversion should improve substantially in 2028 due to the renewal of several large colocation leases. Potential acquisitions from the sponsor pipeline, such as SGP9 in Singapore and a data centre in Western Tokyo, are also likely to materialise in 2028 after these data centres are stabilised. Maintain BUY on the resiliency of the data centre market in Singapore (62.8% of AUM) and support from sponsor Keppel. Target price: S$2.95.
Company Results | SIA Engineering (SIE SP/BUY/S$3.27/Target: S$3.75)
1QFY27 net profit of S$40.3m (-6.1% yoy) was impacted by expansion-related gestation costs at its engine JVs, excluding which earnings would have grown about 10% yoy. Fundamentals of all major business lines remained healthy. We are positive on SIAEC’s recent business developments and recommend that investors look beyond near-term earnings volatilities caused by gestation cost drags and stay invested for SIAEC’s medium-term growth potential. Maintain BUY. Target price: S$3.75.
Market Spotlight
- US stocks were lower on Thursday, with all indices falling as the communication services, consumer discretionary and consumer staples sectors fell with more decliners than advancers on both the NYSE and NASDAQ.
- The FSSTI fell 13.66 points to 5,581.76, due to weakness in SIA and DBS, with both mid- and small-cap indices falling with a broad market decline on a S$1.94b turnover.
Technical Analysis
DFI Retail Group Holdings | DFI SP
Trading Sell Range: US$3.49-3.50
Singapore Airlines | SIA SP
Trading Sell Range: S$7.63-7.64
Top Stories
Company Results | Keppel DC REIT (KDCREIT SP/BUY/S$2.30/Target: S$2.95)
Rent reversion should improve substantially in 2028 due to the renewal of several large colocation leases. Potential acquisitions from the sponsor pipeline, such as SGP9 in Singapore and a data centre in Western Tokyo, are also likely to materialise in 2028 after these data centres are stabilised. Maintain BUY on the resiliency of the data centre market in Singapore (62.8% of AUM) and support from sponsor Keppel. Target price: S$2.95.
Company Results | SIA Engineering (SIE SP/BUY/S$3.27/Target: S$3.75)
1QFY27 net profit of S$40.3m (-6.1% yoy) was impacted by expansion-related gestation costs at its engine JVs, excluding which earnings would have grown about 10% yoy. Fundamentals of all major business lines remained healthy. We are positive on SIAEC’s recent business developments and recommend that investors look beyond near-term earnings volatilities caused by gestation cost drags and stay invested for SIAEC’s medium-term growth potential. Maintain BUY. Target price: S$3.75.
Market Spotlight
- US stocks were lower on Thursday, with all indices falling as the communication services, consumer discretionary and consumer staples sectors fell with more decliners than advancers on both the NYSE and NASDAQ.
- The FSSTI fell 13.66 points to 5,581.76, due to weakness in SIA and DBS, with both mid- and small-cap indices falling with a broad market decline on a S$1.94b turnover.
Technical Analysis
DFI Retail Group Holdings | DFI SP
Trading Sell Range: US$3.49-3.50
Singapore Airlines | SIA SP
Trading Sell Range: S$7.63-7.64
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