Singapore Equity Picks
We raised exposure to technology stocks (UMS and AEM) in Equity Picks last week at their correction trough. Our tactical view is that the trough should hold, while the trend ahead is likely to remain sideways. Following their strong rebound over the past week, we are paring exposure while keeping both stocks in the portfolio.
UMS Integration: Reduce by 4,000 shares @ SGD2.47
Stock rebounded 17% from trough (@ SGD2.11) over the past week. Post reduction, 14,000 UMS shares remain in Equity Picks.
AEM Holdings: Reduce by 700 shares @ SGD8.93
Stock rebounded 23.8% from trough. Yesterday’s session high of SGD9.10 was just shy of the 50% upward retracement level. Shares removed returned 18%. There remain 3,800 AEM shares in Equity Picks post reduction.
Market View Update
Singapore Market Focus: Opportunity to rotate, not retreat
- Market concentration and banks’ fading XD support create an opportunity for rebalancing and rotation
- Rotate into large caps with earnings momentum, stable rate beneficiaries, and value unlocking catalysts
- Position in 5 SMC themes ahead of the next SGD2.55bn of EQDP deployment
Trending Sector
Regional Oil & Gas
Oil prices - progress on Hormuz reopening more credible this time?
- Brent falls below USD80/bbl as hopes of Hormuz “reopening” rise
- Iran and Oman in advanced talks to create a new normal in the Strait, though US agreement is not a given
- We reckon volatility will persist in the near term, but a return to talks is welcome
- Upside risks falling as US could be keener on diplomacy rather than renewed attacks
Stocks to Watch
Singtel
Bharti’s EBITDA beat to benefit Singtel
- Excluding one-offs, 1Q27 EBITDA of INR342bn (+23% y/y, +9% q/q) beat consensus by 3%, led by higher ARPU and margins while earnings of INR80.6bn (+35% y/y, +11% q/q) was 6% below consensus due to higher finance and D&A costs
- Near-term Bharti’s ARPU to rise led by migration to higher data-tiers, post-paid expansion and premiumisation via 5G network slicing. We expect broad tariff-hikes in 6-12 months
- Singtel’s share price has a higher correlation with Bharti’s market cap than its earnings.
- Maintain BUY for Singtel with an unchanged TP of SGD5.46
CapitaLand Ascendas REIT
Accelerating earnings growth from acquisitions and redevelopments ramp up
- 1H26 DPU of 7.482 Scts in in line with our estimates, forming c.50% of our FY26 projections
- The c.SGD1.8bn of acquisitions announced and completed in 1H26 will drive earnings growth in 2H26 and FY27
- Recently completed redevelopments are gradually ramping up; main drivers of occupancy rates and earnings in 2H26
- Maintain BUY with unchanged TP of SGD3.20
LendLease REIT
Emerging Singapore Retail Titan
- 2HFY26 DPU of 1.85 Scts (+3% y/y) brings FY26 DPU to 3.70 Scts (+3% y/y), in line with consensus and c.2% ahead of our expectations
- Expect low-single digit DPU growth over near term, driven by incremental contribution from PLQ and resilient rent reversions, partly offset by enlarged unit base
- Medium-term catalyst from acquisition opportunities to deepen exposure to high-quality Singapore commercial assets and further scale LREIT’s retail platform
- Maintain BUY with unchanged TP of SGD 0.75
Parkway Life REIT
A promising start with revenue-sharing
- 1H26 DPU of 8.77 Scts (+15% y/y) was largely in line with DBS and consensus expectations, as stronger operating performance from Singapore portfolio offset impact of tenant exit in Japan
- Positive surprise from revenue-sharing arrangement at Gleneagles Hospital and Parkway East Hospital for 1Q26; outperformance will only be assessed on a full-year basis, hence we leave this as potential upside
- Japan portfolio recovery progressing, albeit slower than expected, as management seeks to incorporate inflation-linked rental escalation clauses into new leases
- Maintain BUY and TP of SGD4.75
Centurion Accommodation REIT
Capacity expansion underpins earnings upside
- 1H26 revenue and NPI at SGD108.9 mn and SGD78.4 mn respectively, beating prospectus estimates by 5.1% / 4.3% respectively, forming ~52% of our estimates
- PBWA and PBSA portfolios recorded financial occupancy of 92.2% and 98.8% respectively
- Aggregate leverage remained healthy at 29.9%, with SGS380.0 mn of debt headroom, providing financial flexibility to pursue organic and inorganic growth opportunities
- Maintain BUY, current TP of SGD1.30 under review
Daiwa House Logistics Trust – TP (-), Earnings (-)
Weaker JPY and lingering vacancies offset positive leasing momentum
- 1H26 DPU of 1.82 Scts was c.19% lower y/y, below our projections
- Weaker performance was largely due to the continued depreciation of JPY, which depreciated c.10% y/y
- Portfolio occupancy remained stable q/q but will improve with the new lease at DPL Koriyama
- Maintain HOLD with a lower TP of SGD0.50 (vs. SGD0.57); reflecting further currency weakness, higher borrowing costs, and prolonged vacancy at DPL Sendai Port
CapitaLand China Trust
Green shoots emerge amid a gradual recovery
- 1H26 DPU of 2.45 Scts (-1.6% y/y) was a beat, accounting for c.52-54% of DBS and consensus full year estimates, on resilient operating performance and interest savings
- Retail operating metrics continue to improve; anchor repositioning and active tenant remixing should support an eventual turnaround in rental reversions as retailer confidence recovers, though this is likely to take some time
- Business parks expected to remain a drag amid oversupply and intense competition for tenants, while logistics portfolio appears to be bottoming out, with negative rental reversions narrowing sharply
- Maintain HOLD and TP of SGD 0.75
Legend
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Earnings | Positive earnings revision | Negative earnings revision |
Recommendation | Upgrade | Downgrade |
TP | Increase | Decrease |
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DBS Equity Picks (Singapore or Hong Kong) product can be oriented towards readers with a short-term trading horizon. Readers should be aware that DBS Equity Picks (Singapore or Hong Kong) may combine both fundamental and technical analysis. As such the DBS Equity Picks (Singapore or Hong Kong) may from time-to-time conflict with fundamental ratings (where stocks are ranked to Strong Buy, Buy, Hold, Fully Valued and Sell on a 12-month basis), which are maintained by DBS Singapore or Hong Kong analysts.
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