Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>Macro Relief: The sharp decline in Singapore’s 3M SORA lowers financing costs and supports asset valuation through expected cap rate compression across the group's diverse property portfolio.</li>
<li>Execution Premium: UOL has demonstrated best-in-class performance in the recovering residential segment, highlighted by rapid sales take-up in high-margin, prime-location projects, providing robust earnings visibility.</li>
<li>Financial Fortress: UOL operates with a conservative net gearing ratio that is unparalleled among major listed peers, providing the strategic capacity required for opportunistic land banking.</li>
</ul>


Macro Relief: The sharp decline in Singapore’s 3M SORA lowers financing costs and supports asset valuation through expected cap rate compression across the group's diverse property portfolio.
Execution Premium: UOL has demonstrated best-in-class performance in the recovering residential segment, highlighted by rapid sales take-up in high-margin, prime-location projects, providing robust earnings visibility.
Financial Fortress: UOL operates with a conservative net gearing ratio that is unparalleled among major listed peers, providing the strategic capacity required for opportunistic land banking.


LONG UOL – The Rerating Imperative in Singapore Real Estate

Thematic (Sector/Industry)

<ul>
<li>We think Singapore REITs are positioned for a re-rating on the back of multiple catalysts: interest rate decline, accelerated M&amp;A and recovery in physical real estate market</li>
<li>3M SORA has declined sharply from 3.034% in January to 1.32% in November.  The steep decline in rates will boost earnings and result in more favorable REIT valuations</li>
<li>The physical market in Singapore is also recovering, especially in the office and residential market.  We think CICT, FCT, and UOL are well positioned to benefit from this cycle</li>
</ul>


We think Singapore REITs are positioned for a re-rating on the back of multiple catalysts: interest rate decline, accelerated M&amp;A and recovery in physical real estate market
3M SORA has declined sharply from 3.034% in January to 1.32% in November.  The steep decline in rates will boost earnings and result in more favorable REIT valuations
The physical market in Singapore is also recovering, especially in the office and residential market.  We think CICT, FCT, and UOL are well positioned to benefit from this cycle


LONG Singapore REITs: Capturing the Yield Compression Cycle and Asset Recycling Renaissance

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haw-par-corp-ltd" target="_blank" data-smartkarma-citation="entities:9898:1" rel="noopener">Haw Par Corp (HPAR SP)</a>'s discount to NAV has narrowed to a multi-year low; and the implied stub and simple ratio (HPAR/UOB) are similarly elevated. Shares are, however, pretty illiquid. </li>
<li>Preceding my comments on Haw Par - and <a href="https://www.smartkarma.com/entities/singapore-land-group-ltd" target="_blank" data-smartkarma-citation="entities:12891:1" rel="noopener">Singapore Land Group (SPLG SP)</a> - are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Haw Par Corp (HPAR SP)'s discount to NAV has narrowed to a multi-year low; and the implied stub and simple ratio (HPAR/UOB) are similarly elevated. Shares are, however, pretty illiquid. 
Preceding my comments on Haw Par - and Singapore Land Group (SPLG SP) - are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haw-par-corp-ltd" target="_blank" data-smartkarma-citation="entities:9898:1" rel="noopener">Haw Par Corp (HPAR SP)</a>  announced a special dividend of S$1.00 per share for 2024, alongside its regular S$0.40 dividend.</li>
<li>Investors have long pushed for higher payouts and special dividends, given the company’s strong cash reserves and free cash flow.</li>
<li>Based on our analysis of its financials, Haw Par could sustainably raise its regular dividend to S$1.00 per share without tapping into reserves.</li>
</ul>



Haw Par Corp (HPAR SP)  announced a special dividend of S$1.00 per share for 2024, alongside its regular S$0.40 dividend.
Investors have long pushed for higher payouts and special dividends, given the company’s strong cash reserves and free cash flow.
Based on our analysis of its financials, Haw Par could sustainably raise its regular dividend to S$1.00 per share without tapping into reserves.


Haw Par Corp (HPAR SP): $1 Special Dividend–Xie Xie, Let's Make It Regular!

Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.</li>
<li>It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world's most credible "green" economies, not a regulatory force-fix of something broken.</li>
<li>No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.</li>
</ul>


The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.
It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world's most credible "green" economies, not a regulatory force-fix of something broken.
No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.


Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

Singapore

UOL Group Limited is a property company. The Company has a diversified portfolio of development and investment properties, hotels, and serviced suites. UOL Group, through its subsidiary owns a portfolio of commercial assets and hotels. UOL Group operates in Asia, Oceania, and North America.

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UOL Group (UOL SP)

LONG UOL – The Rerating Imperative in Singapore Real Estate

We think Singapore real estate is beginning a new bull cycle, on the back of steep decline in 3M SORA. We like UOL due to its exposure in...

Jacob Cheng

LONG Singapore REITs: Capturing the Yield Compression Cycle and Asset Recycling Renaissance

We think Singapore REITs are well positioned for a re-rating, on the back of steep interest rate decline, accelerated M&As and recovery in the...

Jacob Cheng

StubWorld: Haw Par Looking Stretched

The special divi has passed; yet Haw Par's NAV disc. to NAV is now around the narrowest inside a year. At 0.4x P/B, I prefer Singapore Land;...

David Blennerhassett

Haw Par Corp (HPAR SP): $1 Special Dividend–Xie Xie, Let's Make It Regular!

Haw Par’s stock could potentially double if the company raises its regular dividend to S$1.00 per share—a target achievable using solely its...

Devi Subhakesan

Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

Singapore's Code of Conduct for ESG ratings is more light-handed than other regulation-based approaches, but therein lies the "less risk and more...

Kyle Rudden

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