Top Stories
Company Results | Aztech Global (AZTECH SP/HOLD/S$0.83/Target: S$0.73)
2Q26 earnings of S$5.4m (-36% yoy; +35% qoq) are below our expectation, bringing 1H26 earnings of S$9.4m to form 22% of our full-year estimate. Revenue declined 40% yoy in 2Q26 due to reduced customer demand on higher competition. Aztech foresees near-term demand softness in 2H26. Downgrade to HOLD with a 45% lower target price of S$0.73.
Company Results | UI Boustead REIT (UIBREIT SP/BUY/S$0.81/Target: S$1.16)
The lease commencement for a global e-commerce player was delayed by one month but occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26. We trim our DPU forecast by 0.8% for FY27 and 1.2% by FY28 due to weakness in the Japanese yen against the Singapore dollar. Maintain BUY on UIBREIT with a target price of S$1.16.
Company Update | Frasers Centrepoint Trust (FCT SP/BUY/S$2.28/Target: S$2.99)
Aggregate leverage is reduced by 3.5ppt to 36.5% after divesting White Sands for S$467m. The debt headroom freed up could be deployed for the development of a suburban mall with NLA of 170,000sf at Bayshore Drive. Resiliency of suburban malls is supported by growth in household income and limited supply. Maintain BUY on FCT with a target price of S$2.99.
Market Spotlight
- US stocks were mixed on Tuesday, with the Dow Jones and S&P 500 rising while the Nasdaq fell as the healthcare, consumer staples and materials sectors rose. There were more advancers than decliners on the NYSE.
- The FSSTI fell 4.13pt to 5,616.11, due to weaknesses in Riverstone and DBS, with mid-cap indices rising while smallcap indices fell with a broad market decline on S$2.35b turnover.
Technical Analysis
Propnex | PROP SP
Trading buy range: S$1.82-1.83
Singapore Telecommunications | ST SP
Trading buy range: S$4.47-4.48
Top Stories
Company Results | Aztech Global (AZTECH SP/HOLD/S$0.83/Target: S$0.73)
2Q26 earnings of S$5.4m (-36% yoy; +35% qoq) are below our expectation, bringing 1H26 earnings of S$9.4m to form 22% of our full-year estimate. Revenue declined 40% yoy in 2Q26 due to reduced customer demand on higher competition. Aztech foresees near-term demand softness in 2H26. Downgrade to HOLD with a 45% lower target price of S$0.73.
Company Results | UI Boustead REIT (UIBREIT SP/BUY/S$0.81/Target: S$1.16)
The lease commencement for a global e-commerce player was delayed by one month but occupancy at UIB Konan Phase 2 has improved to 100% since Jun 26. We trim our DPU forecast by 0.8% for FY27 and 1.2% by FY28 due to weakness in the Japanese yen against the Singapore dollar. Maintain BUY on UIBREIT with a target price of S$1.16.
Company Update | Frasers Centrepoint Trust (FCT SP/BUY/S$2.28/Target: S$2.99)
Aggregate leverage is reduced by 3.5ppt to 36.5% after divesting White Sands for S$467m. The debt headroom freed up could be deployed for the development of a suburban mall with NLA of 170,000sf at Bayshore Drive. Resiliency of suburban malls is supported by growth in household income and limited supply. Maintain BUY on FCT with a target price of S$2.99.
Market Spotlight
- US stocks were mixed on Tuesday, with the Dow Jones and S&P 500 rising while the Nasdaq fell as the healthcare, consumer staples and materials sectors rose. There were more advancers than decliners on the NYSE.
- The FSSTI fell 4.13pt to 5,616.11, due to weaknesses in Riverstone and DBS, with mid-cap indices rising while smallcap indices fell with a broad market decline on S$2.35b turnover.
Technical Analysis
Propnex | PROP SP
Trading buy range: S$1.82-1.83
Singapore Telecommunications | ST SP
Trading buy range: S$4.47-4.48
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