Singapore

• We believe Boustead Singapore has emerged with a much stronger balance sheet with the disposal of 21 properties into UI Boustead REIT, whilst maintaining a significant stake in the REIT.
• We believe this would help smoothen the lumpy, one-off earnings that was seen in its engineering and real estate business units.
• We believe the strong orderbooks that Boustead has secured would help drive its future earnings and cash generation, and hopefully better margins.

• AI Supercycle and Sustainability Accelerating: The prior initiation report’s core investment theses are tracking positively, with the hyperscale and AI supercycle thesis accelerating. The expectation that Digital Edge would capture the Asia Pacific AI supercycle is validated by its Jan-26 announcement of a US$4.5b, 500 MW AI-ready campus in Indonesia, alongside a Jun-26 acquisition of a 60 MW fully powered site in South Korea.
• Stake Sale Explored at a Valuation Well Above Fundamental Estimates: Between early 2026 and the current date, Digital Edge scaled its capital structure and operational footprint to meet elevated hyperscale demand, while its sponsor Stonepeak reportedly began exploring a strategic stake sale that could value the platform at up to US$10.0b.
• Strengthening Fundamentals, Stricter Sustainability Benchmark: The pvtIQ Fundamental SmartScore© edged higher, led by a widening market opportunity as regional cloud-sovereignty demand compounds with accelerating AI infrastructure needs, and by improving governance following the addition of experienced non-executive directors.

• As Singapore’s largest sports event management company, we think Kin Global could benefit from Singapore’s standing as a destination for sports events and broader events-related tourism.

• The recent 1H2026 net loss, attributed to one-off listing costs and delays on project awards and commencements, hide potentially interesting opportunity in its operational margins.

• The ~25% retreat from the IPO offer price may present a longer-term opportunity should their margins prove sustainable.

• Massive Premium Crystallised: Keppel REIT secured a 28.4% premium on KR Ginza II, validating a robust value-add strategy by reaching 100% occupancy and exiting at a 2.7% cap rate.
• Yen Debt De-risking: Complete divestment eliminates Yen refinancing risks amidst aggressive Bank of Japan rate hikes, effectively shielding the trust’s capital structure and distribution metrics.
• Strategic Capital Rotation: Proceeds fund higher-yielding Australian assets, highlighting a sector trend where foreign capital rotates out while well-capitalized domestic Japanese developers absorb prime real estate.

• OUE Healthcare’s S$0.050 per share privatization offer, announced on August 24, 2026, represents a classic Lippo Group structural cleanup. By utilizing a scheme of arrangement rather than a voluntary general offer, OUE bypasses the nearly impossible Section 215 compulsory acquisition threshold given their existing 89.68% stake, forcing a clean delisting with a lower 75% voting hurdle from attending minority shareholders.
• Stephen Riady’s creeping acquisition of OUE Limited to over 73% signals a long-term desire to take the parent private, but structural debt constraints at the parent level—highlighted by a S$114.6 million net loss in 1H 2026 due to a S$47.0 million non-cash impairment on Gemdale Properties (GPI)—act as immediate funding barriers to executing a full buyout, even at a massive 74% discount to NAV.
• OUE REIT’s pending S$500 million sale of Crowne Plaza Changi Airport and the rumored S$2.4 billion One Raffles Place divestment are defensive plays to pre-empt activist pressure. The proceeds will be used to deleverage (bringing gearing down from 41.5% to 36.6% for the hotel sale alone) and fund special distributions to placate institutional investors, while masking underlying related-party fee leakages.

Highlights

• Physical premiums compressed as Asian grades lose ground against increasingly competitive African rubber

• Falling exchange stocks provides a cushion despite weak downstream demand and cautious procurement

• June rubber import and tire export rebound signal improved buying after May’s caution.

• Yesterday, OUE (OUE SP) announced a S$0.05/share Scheme for 89.8%-held OUE Healthcare (OUEHC SP) – see OUE Healthcare (OUEHC SP): S$0.05/Share Scheme Offer From Parent. 
• On balance, terms are fair to minority shareholders. I don’t expect any pushback.
• OUE also holds a ~ 49% stake in OUE (OUEREIT SP), worth ~135% of its market cap. OUE is beyond illiquid. Look way now if this isn’t in your wheelhouse. 

Executive Summary

• Thesis Update: AI Supercycle Accelerates While Green Funding Faces Regulatory Friction. Vantage Data Centers continues to capture artificial intelligence infrastructure demand, evidenced by a recent high-density deployment agreement in South Wales. However, the firm’s sustainable development model is encountering increased regulatory friction, highlighted in Texas by both a voluntary commitment to new state standards on independent funding for power and water infrastructure, and a separate state-ordered halt on new grid connections pending audit.
• Corporate and Industry Developments: AI Demand Drives US$100.0b Valuation Target and Regulatory Scrutiny. Operational momentum and the broader artificial intelligence cycle have prompted the company and its primary backers to explore a potential initial public offering or stake sale as early as 2027, targeting an estimated US$100.0b valuation. Concurrently, the firm navigated heightened resource scrutiny by committing to stringent new data centre standards in Texas and expanded its European footprint through a strategic partnership with Nebius.
• SmartScoring Update: At initiation, the pvtIQ Fundamental SmartScore© reflected a single snapshot in time, offering no basis to distinguish a temporary fluctuation from a sustained directional shift. As of this report, the score has since softened, with declines across seven of eight categories, led by Market Opportunity and Competition, and with Moat newly scored. The companion pvtIQ Sustainability SmartScore© held flat over the same period, reflecting a reporting lag rather than genuine stagnation.

• Over 20 SGX-listed companies moved from losses to profits, driven by varied factors like operating improvements and margin recovery.
• Ouhua Energy’s profitability was supported by higher LPG margins and lower-cost inventory amid Middle East supply disruptions.
• Food Empire’s return to profitability was aided by revenue growth and absence of prior-period fair-value loss on investments.

• OUE Healthcare (OUEHC SP) disclosed a scheme offer from OUE (OUE SP) at S$0.05 per share, a 28.2% premium to the undisturbed price of S$0.039 (21 August). 
• The offer represents a 6-year high and is attractive compared to precedent transactions and peer multiples.
• The scheme vote is low risk as no disinterested shareholder holds a blocking stake. At the last close and for a 31 December payment, the gross/annualised spread was 4.2%/11.7%.

• Investment Theses Review: The baseline investment theses are tracking as expected or accelerating, driven by a US$856.0m green loan to fund Indonesian expansion and a 210 MW acquisition in India that pushes the regional portfolio toward 1.0 GW. However, this aggressive capital deployment into high-density artificial intelligence infrastructure introduces heightened leverage and refinancing risks in a tightening credit environment.
• Aggressive Capacity Expansion and Strategic Asset Rotation: The company executed significant footprint expansions across India and Indonesia while concurrently exploring a potential US$1.0b divestment of its 219.3 MW China portfolio. This asset rotation strategy aims to optimise capital allocation toward less geopolitically constrained Southeast Asian markets, though it underscores the persistent regulatory complexities of operating across fragmented sovereign jurisdictions.
• Commercial Quality Rising, Sustainability Held Back by Disclosure:

  PDG’s Fundamental score edged higher on genuine business gains, with stronger unit economics from premium long-dated AI contracts and deeper regional management, though a reportedly unsettled ownership register warrants caution. The Sustainability score fell only because our approach now weighs demonstrated execution against global best practice rather than design intent, so the environmental profile is constrained by disclosure rather than capability, a gap fuller reporting would close.

• Grab Holdings Inc. reported strong second quarter 2026 results, marked by significant growth in adjusted EBITDA and active user metrics.
• Adjusted EBITDA increased 54% year-over-year to $168 million, expanding margins to 16.9% of revenue from 13.3%, representing the 18th consecutive quarter of EBITDA growth.
• On-demand gross merchandise value (GMV) rose 21% year-over-year to $6.5 billion, supported by a record 54 million monthly transacting users (MTUs), despite continued elevated fuel prices in the region.

Executive Summary

• Licensed digital-only bank with a credit-first model: One of only six standalone digital banks licensed by the BSP, Tonik launched as the Philippines’ first neobank and has since become a standalone, cash-flow profitable digital bank through a high-margin, credit-led strategy targeting the country’s unbanked credit gap.
• AI-enabled consumer lending strategy: Tonik acquires customers through employer payroll loans, offline POS/BNPL finance, and digital cash loans, then layers on deposits and accounts to deepen engagement and fuel AI-driven underwriting, producing industry-leading unit economics.
• Scaling into an underpenetrated credit market: With the vast majority of Filipinos never having had a bank loan, Tonik converts underbanked customers into repeat credit users through data-driven underwriting, a strategy validated by its recent transition to cash-flow profitability as a standalone digital bank.

Highlights

• Indonesia May rubber exports hit a recent low of over 99,400 tons

• May returns at over US$206 million, supported by higher prices

• Area under rubber cultivation declines by about 17% in five years until 2026

• Back on the 16th December 2025, OUE (OUE SP) acquired Itochu Corp (8001 JP)‘s 19.32% stake in OUE Healthcare (OUEHC SP), a healthcare/property play, lifting OUE’s holding to 89.68%.
• OUE paid S$0.024/share at the time. OUE has now announced an Offer, by way of a Scheme, for OUEHC at S$0.05/share, a 28.2% premium to undisturbed and a five-year high.
• Terms are not final (as far as I can see). Four to five months is a rough gauge to complete; although Avarga (AVARGA SP)‘s Scheme is taking significantly longer. 

• Singapore Airlines (SIA SP) share price performance for the last 5 years is quite strong, thanks to the COVID rebound. 
• However, losses are still coming, notably from the continuing loss from Air India as well as the delayed fuel hedging loss as net fuel cost skyrocketed by 78% YoY.
• Air India losses come from a crowded market (with low-cost carriers) as well as integration issues. More capital calls are expected, which is a negative for Singapore Airlines. 

• Indofood Agri Resources Ltd (“IndoAgri”) is a vertically integrated agribusiness with activities spanning from Research & Development (“R&D”), seed breeding, and oil palm cultivation to the extraction & processing of Crude Palm Oil (“CPO”) and Palm Kernel (“PK”), as well as the production & marketing of edible oil, margarine, and other related products and derivatives.
• For the six months ended 30 June 2026 (1H FY2026), revenue rose by 2.5% to Rp 9.6 trillion in 1H FY2026 from Rp 9.4 trillion in 1H FY2025.
• Third party plantations revenue fell by 11.7% year on-year (“y-o-y”) to Rp 2.1 trillion in 1H FY2026 amid higher portion of CPO sold internally to its Edible Oils & Fats (“EOF”) division, while third party EOF revenue rose by 7.4% y-o-y to Rp 7.5 trillion in 1H FY2026.

• Asset-Liability Mismatch Risk: The fundamental structural risk for Chocolate Finance lies in offering instant withdrawals (via FAST up to S$20,000 daily) while the underlying portfolio consists of short-duration bond and money market funds with a T+1 to T+2 settlement cycle. This forces the company to rely on a costly, proprietary liquidity facility that is highly sensitive to coordinated redemption waves during rate-cut cycles.
• Unfavorable Amova Partnership Economics: The embedded finance partnership with Amova operates on a tight revenue-sharing agreement where the net interest margin (NIM) of approximately 80 to 100 basis points is split, leaving Chocolate Finance with only 30 to 40 basis points. This margin is insufficient to offset the high technology integration, operational overhead, and compliance sync costs unless average customer balances exceed S$15,000.
• Compressed CAC-to-LTV and Shift to B2B2C: Direct-to-consumer customer acquisition costs (CAC) have remained high at S$90 to S$110, while Lifetime Value (LTV) has compressed significantly due to the reduction in target returns from 4.2% to 3.6% in response to falling global yields. This has driven up customer churn and forced a strategic pivot toward lower-margin, but higher-volume, B2B2C channels.

• Realized gold of US$4,486/oz drove revenue up 23% to US$65.2m and net profit up 18% to US$18.6m, despite a 6% fall in CIL output.
• The balance sheet remains the differentiator: US$62.9m net cash, no bank borrowings, and the US$12m twin-shaft underground build is fully self-funded to completion in 2027.
• FY26e at 8.9x P/E and 7.2x EV/EBITDA on S$1.37, 1.4% yield, 48.7% ROE, with 11% of the market cap in cash. 

• Iron ore has been relatively steady in the last three years after a highly volatile seven years before that.  Market forces currently pushing IODEX in different directions.
• Major drivers include declining profitability in the Chinese Steel Sector, and the global oil price situation, mainly driven by geopolitical risks and war.
• We discuss a DEC26 options strategy aimed at monetizing iron ore volatility in the current range.

• Equipment sales tide through: MetaOptics continues to sell metalens testersto Taiwan. Contract liabilities provide revenue visibility into 2HFY26.
• The company withdrew their dual list application at Nasdaq, but continues to expand its US presence, with their Direct Laser Writer deployments at US academic facilities assisting interested partners with prototyping and sampling.
• Funded to execute: ~SGD1.5mn normalised half-year burn leaves ~21 months of runway to advance a broadening pipeline, including the Elsoft equipment partnership and a 12MP TiO2 metalens now prototyping for a major global tech company.

• June rubber production surged 36% month-on-month to 38,500 tonnes.
• Natural rubber exports jumped 32.29% month-on-month in June.
• Tire exports rose 44.22% YoY to over US$630 million during Jan-April 2026.

• Capturing a 180-basis-point positive spread by recycling a mature hotel into a 4.1% yielding co-living asset drives highly accretive 2.4% DPS growth without issuing new equity.
• Backed by SGD 8.9bn in assets, 37.7% gearing, and an extraordinarily low 2.8% debt cost, CLAS leverages immense balance sheet strength to dominate the Asia-Pacific lodging space.
• Unlike logistics assets trapped by long leases, hospitality’s dynamic pricing and co-living’s sticky revenue provide a superior inflation hedge and defensive floor amid macroeconomic volatility.

Executive Summary

• Regional Omnichannel Credit Platform: Atome Financial (or “Atome”, comprising Atome and Kredit Pintar) operates a digital consumer finance ecosystem across four core Southeast Asian markets, transitioning from a pure-play buy-now-pay-later provider to a comprehensive lending platform. The company leverages proprietary artificial intelligence underwriting to serve underbanked demographics, recently processing over US$4.0b in gross merchandise volume for the 2025 financial year.
• Margin-Accretive Growth Trajectory: he investment thesis is anchored by the platform’s transition to sustainable unit economics, evidenced by reaching positive EBITDA and generating US$360.0m in operating income in FY2025 (+52% YoY). This profitability is supported by robust capital-raising capabilities, including a recent US$81.0m local-currency facility from Asia United Bank (July 2026) and a US$345.0m syndicated debt facility that provides the necessary liquidity to scale the capital-intensive consumer loan book.
• Regulatory Tightening and Competition: The company faces structural margin compression from well-capitalised regional super-apps that leverage captive e-commerce ecosystems to subsidise embedded credit offerings. Concurrently, the transition toward formalised consumer credit regimes across Southeast Asia imposes systemic compliance costs and restricts aggressive loan portfolio expansion.

• Capesize futures gained 87% in H1 2026, with June’s 35% reversal erased as Middle East tensions eased, before prices recovered in July.
• Chinese commodity demand remains a key support: YTD iron ore imports rose 6.4%, aluminium ores 18%, while longer Guinea- and Brazil-origin voyages tighten effective Capesize supply.
• Options positioning remains more bullish for Capesize: H1 put/call ratio was 0.38 versus 0.47 for Panamax, with August Capesize calls nearly three times puts and 40k a key upside strike

• NTT DC REIT, listed in July 2025, raised nearly S$1 billion, with a portfolio of six data centres totaling 91 megawatts.
• The REIT charges rent based on contracted power capacity, distributing 100% of its distributable income, with a projected yield close to 8%.
• Growth strategy includes rental reversions and acquiring stabilised assets from Sponsor’s 1.6 gigawatts operational pipeline, focusing on future-proofed assets.

• Although 1H26 revenue of $27.3mil is only 33% of RHTC’s $82mil for FY26F (1H25 was 40% of  FY25), net profit at $9.7mil is 36% of RHTC’s $27mil for FY26F.

• We expect a stronger 2H26 based on a re-acceleration of order book growth in 1H26, retention metrics of over 90% for ITS’s core annual revenue upfront subscription HCM software (SaaS) and expected Academy corporate training momentum in 2H26.

• Services revenue more than doubled to $4.9mil establishing Academy/AI corporate training as the second growth engine.

• HHP Sales Propel H1 Growth. CYD reported first half revenue of RMB 14.7 billion, 13.9% above  the year ago period, but well shy of our revised estimate.
• The growth rates for nearly all segments looks impressive on the surface, but the details impacted the miss from our estimate.
• HHP engines drove Revenue growth, with 1,800 total HHP units going to AIDC. 

• Food Empire (FEH) delivered a clean-looking 1H26 — record half-year revenue and PAT swinging back to positive; [top-line beat riding on a margin miss vs RHTC FY26F].
• Revenue tracks slightly ahead of the run-rate cf full-year forecast; profitability tracks behind it.
• Revenue beat, but it is the only line that beat.

• Regional Hyperscale Infrastructure Provider: SpaceDC operates as a carrier-neutral colocation data centre developer targeting the Southeast Asian digital economy. The company manages the ID01 campus in Jakarta, featuring Open Compute Project-ready architecture and sustainable power integration to support high-density enterprise workloads.
• High-Margin Recurring Revenue: The business model benefits from structural supply shortages in regional data centre capacity, driving demand from global cloud service providers. Once the upfront capital expenditure is deployed and facilities are tenanted, the company secures long-term lease agreements that yield predictable cash flows and high customer switching costs. 
• Anchor Tenant Vulnerability: The company relies heavily on a concentrated base of wholesale hyperscale customers to absorb its capacity expansions. A macroeconomic disconnect between artificial intelligence capital expenditures and realised software revenues exposes the firm to take-or-pay contract disputes and stranded unamortised fit-out costs if key tenants default.

• Ley Choon Group Holdings Ltd. (LEY SP) is an established Singapore-based civil engineering and infrastructure specialist with dominant market standing in underground utilities, sewer rehabilitation, and road resurfacing.
• The Group’s vertically integrated business model—anchored by BCA L6/A1 licensing for unlimited public tender value and proprietary asphalt premix manufacturing—provides a sustainable competitive moat in Singapore’s infrastructure ecosystem.
• Financial performance demonstrates robust operational execution with FY2026 revenue of S$143.95M and an attractive valuation profile (EV/Sales 0.9x, P/E 13.2x) supported by a repaired balance sheet and steady dividend distributions.

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• As Singapore marks National Day, its equity market reflects the country’s position as one of Asia’s leading financial and business hubs.
• The Amova Singapore STI ETF seeks to replicate, as closely as possible, before expenses, the performance of the Straits Times Index (STI), and provides diversified exposure to Singapore’s largest listed companies.

• Several structural factors have supported the STI (“the Index”) over the past year, including Singapore’s resilient economic growth, continued foreign capital inflows, expanding financial services sector and supportive market development initiatives.

Highlights

• 2026 Q2 exports fall 13% QoQ to 422,000 tons, but remained 1% above last year

• China imports dropped 24% QoQ, while Turkey boosted purchases by 29%

• AFR10 rallies on tight supply before macro-driven correction erases gains

• Micro-Mechanics (Holdings) (“MMH”) is a company that designs, manufactures and markets high-precision tools & parts used in the assembly and wafer fabrication processes of the semiconductor industry.
• It has five operating facilities located in Singapore, Malaysia, China, the Philippines, and the U.S., and serves more than 600 customers (as noted by MMH in April 2026).
• Besides designing & manufacturing consumable tools & parts used for the assembly & testing of semiconductors, MMH also produces parts for Wafer Fabrication Equipment (“WFE”).

• Platform and Ownership Transition: STT GDC operates a globally distributed digital infrastructure platform with 2.3GW of design capacity across 12 markets, of which roughly a quarter is currently in service. The pending S$13.8bn buyout by a KKR and Singtel consortium transfers control from founding shareholder ST Telemedia to sponsors with the balance sheet capacity to support a multi-gigawatt build-out, though the transaction is a secondary sale rather than a capital raise and remains subject to regulatory approval. Temasek retains indirect exposure through Singtel.
• Investment Case and Operating Leverage: The case rests on capturing hyperscale and AI-driven demand through long-term colocation contracts, with contracted future revenue rising from roughly S$4.5b to S$6.3b (as reported) over the year. FY25 marked the earnings inflection: revenue edged lower on reduced power recharges rather than weaker demand, with revenue net of power costs growing around 12%, while EBIT margin expanded from 9.6% to 16.9%. The improvement is not a pass-through artefact; measured net of power, the expansion is wider still, as the Singapore, India and UK/Europe segments each roughly doubled their contribution.

• Capital Intensity and Regulatory Risk: The principal risks are the platform’s capital intensity against S$3.8bn of borrowings and S$1.5bn of lease liabilities, with the bulk of design capacity still requiring construction. Revenue is highly concentrated, with two customers accounting for around 58% of FY25 revenue. Close to 30% of capacity is held by joint venture and minority partners, so headline capacity overstates economic interest. Tightening licensing and sustainability requirements, particularly in Singapore where new capacity is constrained, limit growth in the group’s highest-rate market and impose retrofit costs that are not recoverable from tenants.

• Aggressive Pan-Asian Expansion: Backed by Bain Capital, Bridge Data Centres is aggressively expanding its hyperscale data center footprint across high-growth markets including Malaysia, Thailand, and India, with an ambitious target of reaching two gigawatts of capacity by 2030 to meet soaring demand from AI and cloud computing.
• Strong Financial Backing and Execution Capability: The company has demonstrated robust access to capital, highlighted by a significant US$2.8 billion debt financing facility. This financial strength, combined with an experienced management team, underpins its strategy of rapid, large-scale development of AI-ready data center campuses.
• Concentrated Risk Profile: The business model faces significant risks, including a high concentration of revenue from a small number of hyperscale customers, substantial execution risks associated with its capital-intensive build-out strategy, and exposure to evolving regulatory landscapes in its operating markets.

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Executive Summary

• Global Automated Retail Footprint: IJOOZ operates a decentralised network of over 3,000 autonomous fresh juice vending machines across 32 countries, achieving an 80% market penetration rate in its domestic Singapore market. The hardware-centric model leverages proprietary robotics and IoT monitoring systems to eliminate traditional retail labour and premium storefront rental overheads.
• Asset-Light Franchise Economics: Combining proprietary technology with an asset-light expansion model yields strong operating leverage, evidenced by a reported net profit of US$2.5m for the 2024 financial year. By shifting initial machine capital expenditure to franchisees, the company generates organic cash flow to fund continued international expansion.
• Agricultural Supply Chain Exposure:The business model is highly sensitive to the pricing and availability of fresh oranges, exposing operating margins to global agricultural yields and macroeconomic volatility. Recent supply chain pressures driving severe raw orange sourcing price inflation directly threaten unit profitability if consumer pricing remains fixed.

• Keppel DC REIT’s DPU rose 11.3% in 1H26, driven by positive rental reversions and higher effective interests in assets.
• Digital Core REIT maintained stable DPU despite lower net property income, with 97.3% occupancy and 25% rental reversions.
• NTT DC REIT’s occupancy increased to 95.9%, exceeding IPO projections with 10.6% higher distributable income and 31.0% leverage.

• Capital recycling is the 2026 growth engine. S-REITs are selling legacy assets at premiums to private credit, funding accretive acquisitions without dilutive equity raises at wide NAV discounts.
• CLAR exemplifies this, divesting a legacy asset at a 32% premium to rotate SGD 1.4 bn into high-yield Japanese data centers and premium logistics, securing execution certainty.
• Despite United States business park headwinds, CLAR boasts a fortress balance sheet with 39.7% leverage and 8.5% rental reversions, cementing its status as an institutional yield favorite.