Parkway Life REIT: A Robust Growth Story
Maybank Research initiates coverage of Parkway Life REIT (PREIT) with a BUY recommendation and a Dividend Discount Model (DDM)-based target price of SGD4.1. The REIT boasts a strong track record of uninterrupted recurring dividend growth and a well-defined growth strategy that focuses on lease renewals and portfolio expansion. Its sponsor, a global healthcare giant, provides a significant acquisition pipeline and deal network.
Despite tight yield spreads, the premium valuation of PREIT is justified by its attractive attributes and the favorable thematic positioning of the healthcare sector. Investors can expect a visible and growing distribution profile, reinforcing its appeal as a long-term investment in the REIT space.
Alpina Holdings: Securing Growth Through New Contracts
Alpina Holdings has secured seven new contracts in the second half of 2024, amounting to a provisional contract sum of SGD40.8 million. These contracts span various services, including mechanical and electrical systems maintenance and additions and alteration works, with completion dates ranging from November 2025 to November 2028.
While the provisional contract sum may not directly translate into recognized revenue, these wins are expected to bolster Alpina’s order book and contribute to additional earnings growth. The development underscores Alpina’s capabilities in securing large-scale contracts, which bodes well for its long-term performance. Maybank Research holds a POSITIVE outlook for Alpina Holdings.
Audience Analytics: A Balanced Dividend Policy
Audience Analytics has adopted a dividend policy aimed at distributing at least 50% of its net profit for the fiscal years 2025-2027. This policy represents a balanced approach, enabling the company to reward shareholders while retaining sufficient earnings for growth initiatives such as acquisitions, expansion, or capital expenditures.
Management’s commitment to this policy demonstrates its focus on delivering shareholder value while maintaining flexibility in managing future cash flows. This move positions the company for sustainable growth and provides clarity to investors. Maybank Research assigns a POSITIVE outlook for Audience Analytics.
DISA Limited: Commercializing Innovative Technology
DISA Limited has entered into a tri-party licensing agreement with the National University Hospital (NUH) and the National University of Singapore (NUS) to commercialize the Mobile Imaging Device for Anterior Segment (MIDAS). Registered with the Health Science Authority of Singapore, MIDAS is a portable device designed for cataract screening in primary care settings.
The device is intended for use by patients, nurses, and primary care physicians, including general practitioners, polyclinic doctors, and emergency physicians. While this development highlights DISA’s innovative capabilities, Maybank Research remains NEUTRAL on the company, as the commercial viability and revenue impact of MIDAS are yet to be seen.
ASEAN Internet Sector: 2025 Outlook
Maybank Research retains a POSITIVE outlook on the ASEAN Internet sector, supported by robust fintech growth. All three internet names under coverage receive a BUY recommendation. The sector is projected to see General Merchandise Value (GMV), revenues, and Adjusted EBITDA grow by 20%, 26%, and 51% year-on-year, respectively, in 2025.
Fintech is expected to lead revenue growth with a 32% year-on-year increase, driven by under-penetration, ecosystem synergies, and the introduction of new services. E-commerce and on-demand service revenues are projected to grow by 28% and 16% year-on-year, respectively, supported by strong ASEAN macroeconomic conditions and rational competition. However, macroeconomic and foreign exchange headwinds in Brazil and competition from ride-hailing entrants may pose challenges in these segments.
Top Equity Ideas: Singapore Winners in the JB-SG Special Economic Zone
Maybank Research identifies the JB-SG Special Economic Zone (JS-SEZ) as a significant opportunity for value creation. By combining Singapore’s global finance and logistics capabilities with Johor’s competitive land, labor, and energy access, the zone is poised to deliver a unique proposition for investors.
Key sectors expected to benefit include Banks, Gaming, Industrials, Technology, and Telecommunications. The top stock picks for Singapore in this context are AEM, CICT, FRKN, GENS, MLT, OCBC, SCI, ST, TMG, UMS, UOB, and VMS.
