Maybank Research Pte Ltd
21 March 2025
Market News and Equity Insights: Suntec REIT, Keppel Infrastructure Trust, BlackGold Natural Resources, First Resources, and ASEAN Data Centre
Suntec REIT Issues SGD175m Notes Due 2031
Suntec REIT has launched and priced SGD175 million 3.40% notes due in 2031. These notes will be issued under the USD2 billion Euro Medium Term Securities Programme established on August 15, 2013. DBS and UOB have been appointed as the joint lead managers for the issuance. The notes are issued at 100% of their principal amount, with denominations of SGD250,000. The issuance is expected on March 27, 2025, maturing on March 27, 2031. Net proceeds will be used for general corporate purposes, refinancing existing borrowings, financing acquisitions and investments, and funding asset enhancement works. [[1]]
Keppel Infrastructure Trust 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. This sale, initially announced on October 23, 2024, involved KIT and Metro Pacific Investments Corporation (MPIC) agreeing to sell their combined 100% stake in PCSPC for a total enterprise value of USD460 million, including USD181 million of net debt. KIT and MPIC held shares in PCSPC through Razor Crest, a 50:50 jointly controlled company. Razor Crest entered a sale and purchase agreement on October 23, 2024, to sell its entire stake in Hyperion Storage Holdings Corporation to Coral Terminal. Coral Terminal’s parent entity, Terminal PH Investments, is also an affiliate of I Squared Capital. [[1-2]]
SGX RegCo Reprimands BlackGold Natural Resources Directors
SGX RegCo has publicly reprimanded directors of BlackGold Natural Resources for violating listing rules, including failing to implement effective internal controls and making timely disclosures. The directors named are executive director and CEO Andreas Rinaldi, independent directors Lim Chee San and Bangun Madong Parulian Samosir, and CFO Suherman Budiono. 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 informing the board. The company’s mining license has also expired, and these material developments were not disclosed publicly until weeks later. Trading of BlackGold Natural Resources shares has been suspended since June 15, 2023, and the company has been under judicial management since January 26, 2024. [[2]]
Top Equity Ideas: First Resources
Long-Term Positive Despite Short-Term EPS Dilution
- The proposed acquisition is valued at USD10,202 per planted hectare, which is considered a decent price given land scarcity.
- At 37.5x 2024 PER, the acquisition is expected to be short-term EPS dilutive for First Resources (FR), primarily due to losses at ANJT’s non-core food crops.
- There is a long-term positive outlook on ANJT’s potential and the feedstock security it offers to FR’s downstream operations.
- Earnings forecasts are maintained for now, but the rating for FR is downgraded to HOLD due to limited upside to the target price of SGD1.69, based on 9x FY25 PER (-0.75SD of the 6-year mean). [[3]]
ASEAN Data Centre – Thailand BOI Approves USD2.7b DC Investments
- The Thailand Board of Investment (BOI) has approved USD2.7 billion in data center projects totaling 350MW.
- Projects include Beijing Haoyang (300MW), Empyrion (12MW), and GSA (40MW).
- Bangkok’s 105MW capacity lags behind regional hubs, presenting strong growth potential.
- GSA (a joint venture of Gulf/Singtel/AIS) is expected to benefit from its vertical integration, while Singtel strengthens its regional leadership.
- Bytedance has also announced an USD8.8 billion data center investment in Thailand recently. [[3]]
