Daily Brief Singapore: NTT DC REIT, IFBH, Singapore Post, Flagship Minerals, SGX Rubber Future TSR20, Soilbuild Construction and more

• Ntt Dc Reit (NTTDCR SP) (NDC), a data center REIT, aims to raise up to US$810m in its Singapore IPO.
• The IPO portfolio comprises six mainly freehold data centres in the U.S., Austria and Singapore with an aggregate appraised valuation of US$1.6bn.
• In this note, we look at the company’s portfolio and its performance.

• We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.
• A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
• There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

• NTT DC REIT (NTTDCR SP) (NDC), a data center REIT, aims to raise up to US$810m in its Singapore IPO.
• The IPO portfolio comprises six mainly freehold data centres in the U.S., Austria and Singapore with an aggregate appraised valuation of US$1.6bn
• We have looked at the company’s past performance in our previous note. In this note, we will talk about valuations.

Singapore Post (SingPost) has experienced significant changes over the last six months, and further change is likely as the company searches for a new CEO. We expect a strategy update following the hiring of the new CEO. The timing of an appointment is unknown, as are the identity of the candidate and the strategy itself. Given the potential upheaval, we withdraw our forecasts pending strategic clarity.

• IFBH’s IPO debut is outstanding. Capital/investors are actually voting for “light-asset + high-efficiency” business model, as they see the possibility of achieving great results with small investment in if coconut water. 
• When coconut water consumption boom subsides, real competition lies in whether IFBH can turn the opportunity of “riding the wave” into high moat amid supply chain crisis/price wars/single product line.
• The ultimate outcome of this capital frenzy remains an unknown. We updated our forecast. IFBH is overvalued. Reasonable valuation should be lower than Nongfu Spring/MIXUE who has supply chain barriers.  

• Flagship Minerals Limited (ASX:FLG), formerly Pan Asia Metals Limited (ASX:PAM), is a junior explorer with two projects focusing on gold and copper respectively in Chile.
• Pantanillo is an advanced gold oxide project which has an NI 43-101 based 1.05Moz Au MRE (99.4% Measured and Indicated) which is a Qualified Foreign Estimate under JORC, whilst Rosario represents an earlier-stage copper exploration project.
• Both projects are subject to binding option agreements whereby FLG will make annual option payments and conduct work programmes to progress the projects.

• Linglong Tire’s new plants in Brazil, Kenya and Anhui in China  
• Yongsheng Rubber to take advantage of Morocco’s FTA with West  
• CNTR’s car tire facility to come up at Alexandria in Egypt  

• Soilbuild Construction’s revenue surged 58.4% in FY2024, driven by a S$647.5 million PSA Supply Chain Hub contract.
• The Construction division contributed 81.5% to total revenue, while Precast and Prefabrication grew by 87.1% in FY2024.
• Soilbuild Construction generated S$35.9 million in operating cash flow in FY2024, improving liquidity for ongoing projects.