Maybank Research Pte Ltd 21 March 2025

Suntec REIT Prices SGD175m Notes, KIT Sells PCSPC Stake, and SGX RegCo Reprimands BlackGold Directors

Suntec REIT Launches SGD175m Notes

Suntec REIT has launched and priced SGD175m 3.40% notes due 2031, which will be issued under the USD2b Euro Medium Term Securities Programme established on Aug 15, 2013. DBS and UOB have been appointed as the joint lead managers for the issue of the notes. The notes are issued at an issue price of 100% of their principal amount in denominations of SGD250,000. They are expected to be issued on 27 March 2025 and will mature on 27 March 2031. The net proceeds will be mainly used for general corporate purposes, refinancing of existing borrowings, financing or refinancing acquisition and/or investments and financing any asset enhancement works.

KIT Completes Sale of PCSPC Stake

Keppel Infrastructure Trust (KIT) has completed the sale of its entire 50% equity stake in Philippine Coastal Storage & Pipeline Corporation (PCSPC) to affiliates of I Squared Capital. The sale was first announced on 23 Oct 2024, in which KIT and Metro Pacific Investments Corporation (MPIC) agreed to sell their combined 100% stake in PCSPC for a total enterprise value of USD460m, including USD181m of net debt. KIT and MPIC held shares in PCSPC through Razor Crest, an indirect 50:50 jointly controlled company between the two companies. Razor Crest entered a sale and purchase agreement on Oct 23, 2024 to sell its entire stake in Hyperion Storage Holdings Corporation to Coral Terminal, which is an affiliate of I Squared Capital.

SGX RegCo Reprimands BlackGold Directors

SGX RegCo has publicly reprimanded directors of BlackGold Natural Resources for flouting listing rules, including failing to put in place effective internal controls and not making timely disclosures. The directors named are executive director and CEO Andreas Rinaldi, independent directors Lim Chee San and Bangun Madong Parulian Samosir, and also CFO Suherman Budiono.
According to SGX RegCo, BlackGold Natural Resources failed to update investors on material developments involving its sole operating business, a coal mine in Indonesia. Specifically, an agreement with its mining contractor was terminated at the subsidiary level without updating the board of BlackGold Natural Resources. The company’s mining license has also expired, and the series of material developments were not made known publicly until weeks later.
Trading of BlackGold Natural Resources shares has been suspended since 15 Jun 2023 and the company placed under judicial management since 26 Jan 2024.

Top Equity Ideas

First Resources – Long-term Positive Despite Short-term EPS Dilution

– The proposed acquisition of ANJT is valued at EV/planted ha of USD10,202, a decent price considering the scarcity of land. – At 37.5x 2024 PER, it is short-term EPS dilutive for First Resources, but ANJT’s depressed EPS was partly due to losses at its non-core food crops. – We are long-term positive on ANJT’s potential and the feedstock security it offers to First Resources’ downstream operations. – We are keeping our earnings forecasts for now but downgrading First Resources to HOLD given limited upside to our TP of SGD1.69 on 9x FY25 PER (-0.75SD of 6Y mean).

ASEAN Data Centre – Thailand BOI Approves USD2.7b DC Investments

– The Thailand BOI has approved \$2.7B in data center projects totaling 350MW, including Beijing Haoyang (300MW), Empyrion (12MW), and GSA (40MW). – Bangkok’s 105MW capacity lags regional hubs, offering strong growth potential. – GSA (JV of Gulf/Singtel/AIS) stand to benefit given their vertical integration while Singtel strengthens its regional leadership. – Bytedance also recently announced a USD8.8b DC investment in Thailand.