MYP Ltd. Responds to SIAS: FY2026 Annual Report, Investment Strategy, Liquidity Management, and Shareholder Returns

Concentration Risk Remains High: Despite owning two residential units for diversification, these comprise only about 1.7% of total portfolio value. The Board openly acknowledges that concentration risk remains significant.

Prudent Capital Management—Preference for Liquidity: The Board is maintaining a disciplined approach, prioritising liquidity and financial resilience over opportunistic acquisitions. Capital deployment into new investments will only occur if risk-adjusted returns and strategic alignment are met. The Board believes that preserving liquidity can, in current market conditions, create greater long-term shareholder value than deploying capital into suboptimal opportunities.

Debt Profile and Treasury Management: The group refinanced a S\$325 million bank loan for five years and secured an additional S\$64 million five-year facility for working capital. The current effective all-in interest rate on borrowings is 3.40% p.a. (FY2026), and these are likely non-amortising bullet loans, providing funding certainty and flexibility.

Significant Related-Party Deposit Placement: Of S\$127.5 million cash at year-end, S\$73 million was placed as SGD deposits with a related-party bank in Indonesia. This was done to secure more competitive interest rates compared to Singapore. The Audit Committee and Board are satisfied that these deposits are at arm’s length and commercially advantageous, but investors should note the inherent concentration and counterparty risk.

No Dividend Declared—Shareholder Returns Under Pressure: No dividend was declared for FY2026, as the Board believes capital retention better supports long-term growth and financial flexibility. There is no formal dividend policy, and dividends are reviewed annually. Shareholder returns have been negative over the past 5 and 10 years, as well as since 2012. For example, the 5-year shareholder return is -5%, the 10-year return is -65%, and since August 2012, -60% (including dividends).

Persistent Valuation Gap: MYP Ltd. trades at a steep discount to book value (price-to-book ratio of approximately 0.3x). The Board is aware of this persistent undervaluation but has not committed to any timeline for capital management initiatives such as share buybacks or special dividends, preferring to focus on balance sheet strength for now.

MYP Ltd. Responds to SIAS: FY2026 Annual Report, Investment Strategy, Liquidity Management, and Shareholder Returns

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