Key Indices
Top Stories
Sector Update | REITs
- An influx of safe-haven liquidity and low domestic interest rates have led to a record volume of transaction for commercial properties. Thus, S-REITs are supported by firm asset valuation and relatively low cost of debt.
Maintain OVERWEIGHT.
Company Results | CapitaLand Ascendas REIT (CLAR SP/BUY/S$2.21/Target: S$3.25)
- Singapore occupancy rose 0.8ppt qoq to 90.9%, supported by acquisitions of 5 Tuas Avenue 5 and 25 Loyang Crescent, which are fully occupied. Occupancy for the US increased 1.4ppt qoq to 82.3%, driven by leasing at 13144 South Pulaski Road in Chicago and North Topping in Kansas City. Completed development projects are steadily leasing up. Maintain BUY. Target price: S$3.25.
Company Results | NetLink NBN Trust (NETLINK SP/HOLD/S$0.935/Target: S$1.01)
- 1HFY27 revenue moderated by 2% yoy but good cost discipline and lower O&M helped shore up EBITDA of S$145m (EBITDA margin 71%%). That said, net profit fell 7% yoy, dragged by higher depreciation, and came in below expectations. We cut our FY27-28 earnings estimates by 10-15%. Netlink declared an interim dividend of 2.74 S cents/share (1HFY26: 2.71 S cents/share). This implies an annualised dividend yield of 6.2%. Maintain HOLD with a DCF-based target price of S$1.01.
Company Results | Sheng Siong Group (SSG SP/HOLD/S$2.67/Target: S$2.88)
- SSG’s 3Q26 revenue rose 6.2% yoy to S$441.5m and net profit grew 1.8% to S$44.6m. 9M26 revenue of S$1,296.8m and net profit of S$125.5m formed 76.1% and 75.4% of our full-year forecasts respectively, in line. Downgrade to HOLD at a target price of S$2.88 as slower store growth, utility risks and a broader sector de-rating warrant a valuation of 24.9x 2027F PE, +1SD above its historical mean.
Market Spotlight
- US stocks were lower on Friday. All indices fell as the information technology, industrials and communications services sectors fell. There were more decliners than advancers on NYSE and NASDAQ.
- The FSSTI fell 19.29 points to 5,376.74, on the back of weakness in DBS, UMS and OCBC Bank, with mid-cap indices rising while small-cap indices falling with a broad market decline on a S$1.87b turnover.
Top Stories
Company Results | Keppel REIT (KREIT SP/BUY/S$0.815/Target: S$1.05)
- KREIT intends to use up to S$25m of net proceeds from divestments for unit buybacks. A further S$15m will be returned in three semi-annual tranches: S$7m in 2H27, S$5m in 1H28 and S$3m in 2H28. Maintain BUY with a lower target price of S$1.05.
Company Results | Mapletree Pan Asia Commercial Trust (MPACT SP/BUY/S$1.15/Target: S$1.67)
- VivoCity delivered NPI growth of 5.0% yoy in 2QFY27, supported by the completed Basement 2 AEI and positive rental reversions of +15.0%. MBC secured several new leases with IT tenants, which are progressively commencing in 2QFY27 and 3QFY27. Singapore remains MPACT's core earnings anchor and contributed 68% of group NPI in 1HFY27. Maintain BUY. Target price: S$1.67.
Technical Analysis
DFI Retail Group | DFI SP
Trading Buy Range: US$3.48-3.49
UMS Holdings | UMSH SP
Trading Sell Range: S$2.04-2.05
Top Stories
Sector Update | REITs
- An influx of safe-haven liquidity and low domestic interest rates have led to a record volume of transaction for commercial properties. Thus, S-REITs are supported by firm asset valuation and relatively low cost of debt.
Maintain OVERWEIGHT.
Company Results | CapitaLand Ascendas REIT (CLAR SP/BUY/S$2.21/Target: S$3.25)
- Singapore occupancy rose 0.8ppt qoq to 90.9%, supported by acquisitions of 5 Tuas Avenue 5 and 25 Loyang Crescent, which are fully occupied. Occupancy for the US increased 1.4ppt qoq to 82.3%, driven by leasing at 13144 South Pulaski Road in Chicago and North Topping in Kansas City. Completed development projects are steadily leasing up. Maintain BUY. Target price: S$3.25.
Company Results | NetLink NBN Trust (NETLINK SP/HOLD/S$0.935/Target: S$1.01)
- 1HFY27 revenue moderated by 2% yoy but good cost discipline and lower O&M helped shore up EBITDA of S$145m (EBITDA margin 71%%). That said, net profit fell 7% yoy, dragged by higher depreciation, and came in below expectations. We cut our FY27-28 earnings estimates by 10-15%. Netlink declared an interim dividend of 2.74 S cents/share (1HFY26: 2.71 S cents/share). This implies an annualised dividend yield of 6.2%. Maintain HOLD with a DCF-based target price of S$1.01.
Company Results | Sheng Siong Group (SSG SP/HOLD/S$2.67/Target: S$2.88)
- SSG’s 3Q26 revenue rose 6.2% yoy to S$441.5m and net profit grew 1.8% to S$44.6m. 9M26 revenue of S$1,296.8m and net profit of S$125.5m formed 76.1% and 75.4% of our full-year forecasts respectively, in line. Downgrade to HOLD at a target price of S$2.88 as slower store growth, utility risks and a broader sector de-rating warrant a valuation of 24.9x 2027F PE, +1SD above its historical mean.
Market Spotlight
- US stocks were lower on Friday. All indices fell as the information technology, industrials and communications services sectors fell. There were more decliners than advancers on NYSE and NASDAQ.
- The FSSTI fell 19.29 points to 5,376.74, on the back of weakness in DBS, UMS and OCBC Bank, with mid-cap indices rising while small-cap indices falling with a broad market decline on a S$1.87b turnover.
Top Stories
Company Results | Keppel REIT (KREIT SP/BUY/S$0.815/Target: S$1.05)
- KREIT intends to use up to S$25m of net proceeds from divestments for unit buybacks. A further S$15m will be returned in three semi-annual tranches: S$7m in 2H27, S$5m in 1H28 and S$3m in 2H28. Maintain BUY with a lower target price of S$1.05.
Company Results | Mapletree Pan Asia Commercial Trust (MPACT SP/BUY/S$1.15/Target: S$1.67)
- VivoCity delivered NPI growth of 5.0% yoy in 2QFY27, supported by the completed Basement 2 AEI and positive rental reversions of +15.0%. MBC secured several new leases with IT tenants, which are progressively commencing in 2QFY27 and 3QFY27. Singapore remains MPACT's core earnings anchor and contributed 68% of group NPI in 1HFY27. Maintain BUY. Target price: S$1.67.
Technical Analysis
DFI Retail Group | DFI SP
Trading Buy Range: US$3.48-3.49
UMS Holdings | UMSH SP
Trading Sell Range: S$2.04-2.05
Key Indices
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