SingPost: Stability Paving the Way for Rewards

SingPost has taken significant steps to stabilize its operations following the hiring of a new Chief Operating Officer (COO) and Chief Financial Officer (CFO). The company remains steadfast in its existing strategy, showing no sign of deviation. Investors can look forward to the upcoming extraordinary general meeting (EGM), where the sale of its Australian business and Famous Holdings will be reviewed. This development awaits approval from the Australian government, potentially paving the way for a substantial special dividend during the FY25 results slated for May 2025. Maybank Research maintains a BUY recommendation for SingPost with a target price (TP) of SGD0.77, emphasizing the belief that patience will yield significant rewards.

GuocoLand: Securing Prime Land for High-End Development

GuocoLand has emerged victorious in a competitive bidding process for the highly sought-after land parcel at River Valley Green (Parcel B) in Singapore. The Urban Redevelopment Authority (URA) awarded the parcel to GuocoLand for SGD627.84 million, marking the highest bid among five contenders. This 99-year leasehold plot, located in District 9’s Robertson Quay, boasts a land area of 11,736 sqm (126,325.25 sq ft) and a gross plot ratio of 3.5, translating to a land rate of SGD1,420 per square foot per plot ratio (ppr).

GuocoLand plans to develop the parcel into a high-end waterfront property featuring two residential towers comprising 475 units, along with commercial shops on the ground floor. The project will be financed through a combination of internal resources and bank borrowings. This strategic acquisition underlines GuocoLand’s commitment to premium developments, and the outlook remains POSITIVE.

Seatrium: Partnering with BP for Groundbreaking Deepwater Project

Seatrium has signed a Memorandum of Understanding (MOU) with BP Exploration & Production (BP) to collaborate on the Tiber Floating Production Unit (FPU) project in the US Gulf of America. This marks the second significant partnership between the two entities. Under the MOU, Seatrium will provide engineering, procurement, construction, and commissioning (EPCC) services for the Tiber FPU, which is designed to support BP’s deepwater assets.

The Tiber FPU will leverage advanced technologies to enhance operational efficiency and safety, ensuring compliance with stringent deepwater production standards. BP and Seatrium are in the process of defining the scope of the project, with the final investment decision expected later in 2025. While the current outlook remains cautiously POSITIVE, much hinges on BP’s final approval.

Kingsmen Xperience: Expanding the Entertainment Frontier

Kingsmen Xperience, the US-based subsidiary of Kingsmen Creatives, has entered into a strategic agreement to develop branded attractions across the Asia Pacific region. The company is renowned for managing high-profile licensed attractions, including Hasbro’s Planet Playskool and Nerf Action Xperience, the VR-based Space Explorers: THE INFINITE, and Discovery: A Living Worlds Experience by Warner Bros Discovery.

Excitingly, Kingsmen Xperience is set to launch a new immersive attraction, Squid Game: The Experience, in Seoul, Korea, later this February. While the company’s initiatives present growth opportunities, the current sentiment remains NEUTRAL as the impact of these ventures unfolds.

ISOTeam: Revolutionizing Maintenance with AI Drone Technology

ISOTeam, a leading player in the maintenance sector with a 30% share of Housing Development Board (HDB) projects, is making waves with its cutting-edge AI drone-painting technology. The company has rebounded to profitability after completing several low-margin projects and is poised for an inflection point in FY25.

In April 2025, ISOTeam will pilot its AI drone-painting technology on an HDB site. If successful, the technology promises to reduce costs by 30-40%, giving the company a significant competitive edge in line with the government’s push for manpower reduction. Maybank Research initiates coverage of ISOTeam with a BUY recommendation and a TP of SGD0.09, positioning it as an election play and a potential game-changer in the industry.

ASEAN Data Centre TMT: Addressing Investor Concerns

Maybank Research hosted discussions with investors in Singapore and Kuala Lumpur to address prevailing concerns in the ASEAN Data Centre TMT sector. Key topics included the potential impact of the US eliminating the de minimis exemption, which could prompt Temu to adopt an aggressive stance in the ASEAN market. Investors also speculated on the possibilities of a Grab-Gojek merger, though concerns over valuation and funding persist.

Sentiment toward ASEAN data centers has slightly eased as the market adjusts to events that may hinder demand growth. Among telcos, discussions focused on Singtel’s potential for capital return and the likelihood of stabilizing competition and price adjustments in Indonesia.