Daily Brief Singapore: OUE, Vantage Data Centers, Food Empire and more

• 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.