Ada Lim of OCBC Investment Research has maintained her “hold” call on Bumitama Agri but with a higher fair value of 91.5 cents, up from 81.5 cents, given how the Indonesian palm oil company is seen to receive a boost from higher prices.
In her Dec 5 note, Lim points out that benchmark crude palm oil prices in Malaysia have recently jumped due to heavy rains and flash floods in parts of Southeast Asia. As a result, harvesting and production will be hampered in Indonesia and Malaysia, two of the world’s largest producers of this cash crop.
In Indonesia, key palm oil areas in Sumatra and Kalimantan have recorded surplus rainfall. Landslides and power outages have also impacted related infrastructure and logistics, raising concerns over supply, says Lim.
On the other hand, demand might see a temporary cut given how the Diwali festive season has wound down. However, this will likely pick up again and remain supported through 20 as Indonesia implements its B40 biodiesel program.
See also: UOBKH raises TP on SIA to $6.22, FY2026 earnings to see lift on fuel cost savings
An earlier Lunar New Year this coming 2025 might sustain higher consumption to January, too, says Lim. “All things considered, crude palm oil prices are expected to remain elevated, at least in the near term,” the analyst adds.
For Lim, Bumitama Agri is increasingly being seen by the market as a dividend yield play, with Refinitiv consensus expecting it to offer a 12-month forward dividend yield of 6.4%. Lim has raised her earnings multiple valuation to 8.1 times, and has also taken into account potential growth in sales, leading to her revised fair value of 91.5 cents.
“We reiterate our ‘hold’ rating on valuation grounds but continue to like the stock from a total returns perspective,” she adds.
William Simadiputra of DBS Group Research is more bullish. In his Dec 10 note, he points out that Bumitama’s trees are now entering their “prime” which means better yields and thus profitability.
Assuming palm oil price of US$950 per metric tonne in 2025 and US$850 per metric tonne in 2026, that will result in Bumitama enjoying earnings CAGR of 12.5% between FY2024 and FY2026.
Simadiputra says that Bumitama is already trading at a higher earnings multiple but is set to further narrow the gap with its upstream peers’ thanks to consistent earnings growth.
“Bumitama’s cash accumulation could also pave way for inorganic growth or a higher dividend payout ratio, in our view,” the analyst says as he raised his target price from 90 cents to $1.30. — The Edge Singapore
Oiltek International
Price targets:
Lim & Tan ‘buy’ $1.21
UOB Kay Hian ‘buy’ $1.22
Capitalising on steady growth
Nicholas Yon of Lim & Tan Securities has initiated coverage on Oiltek International with a “buy” call and a $1.21 target price, given how the edible oil process engineering firm is riding on stronger demand for biodiesel as a more sustainable fuel source.
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Oiltek, already one of the better-performing stocks on the Singapore Exchange (SGX) with a gain of more than 320% year to date, is set to benefit from the growing adoption of so-called SAF, or sustainable aviation fuel.
“With its advanced capabilities, Oiltek is well-equipped to capitalise on this trend, positioning SAF production as its next key growth engine,” says Yon in his Dec 6 report.
Oiltek now has an order book of some RM400.9 million ($121.45 million) and is seen by Yon to win additional orders in the coming years.
According to Yon, Oiltek’s string of recent order wins can be attributed to the post-pandemic backlog.
In addition, the company has a distinct capability of offering a comprehensive range of integrated process technology and engineering services that span the entire vegetable oil value chain.
“This unmatched breadth of service sets Oiltek apart from competitors,” says Yon. Last but not least, Oiltek’s business rides on the rising global need for vegetable oils due to food security reasons. It also sees growing demand for biodiesel and renewables and “has been and will continue to be a significant driver”.
The company’s core markets are now Indonesia and Malaysia, but it is eyeing new contracts from Latin America and Africa, where margins, according to Yon, are “generally higher”.
The company is also mulling over acquisitions. Yon notes that Oiltek operates an asset-light model, is debt-free and does not have a heavy balance sheet. Its cash balance of RM132.5 million represents nearly a third of its market cap.
For now, Oiltek does not have a formal dividend policy, but Yon notes that since its listing in 2022, it has maintained a payout ratio of between 40 and 44%. If this payout ratio is held at 42% for FY2024, Oiltek is expected to pay 2.3 cents per share.
The surge in earnings would mark a 45.3% y-o-y jump in dividends. Yon believes that given the higher earnings trajectory, the company might pay up to 3 cents for FY2025.
His $1.21 target price for Oiltek is based on 17.8 times FY2025 earnings, a 25% discount versus comparable Malaysia-listed companies that tend to enjoy higher valuations.
UOB Kay Hian has also initiated coverage on this counter, with a “buy” call. In their Dec 11 note, analysts Heidi Mo and John Cheong, citing Oiltek’s strong growth profile, expect its earnings and order book to grow at double digits from 2024 to 2026.
Their target price of $1.22 is based on 18.9x FY2025 earnings, which is pegged to a price over earnings-togrowth ratio of 0.9 times, with the potential to raise the valuation multiple if the stock attracts better trading liquidity. — The Edge Singapore
ST Engineering
Price target:
CGS International ‘buy’ $5.30
On track to exceed targets
CGS International (CGSI) analysts Kenneth Tan and Lim Siew Khee expect Singapore Technologies Engineering (ST Engineering) to exceed some of the company’s 2021 targets by FY2024 ending December.
In their Dec 9 report, which follows an investor meeting held by ST Engineering in Tokyo, the analysts believe that by FY2024, the group would exceed its annual revenue growth target by two to three times the global GDP to over $11 billion by 2026.
Other targets set in 2021 include net profits growing in line with revenue, the commercial aerospace (CA) business and smart city revenue achieving more than $3.5 billion each by FY2026, and digital business revenue tripling to above $500 million.
They note that CA has exceeded the target set in FY2023, and the digital business is on track to exceed its target by FY2024, with FY2023 revenue hitting $463 million, followed by annualised FY2024 revenue of more than $580 million. “However, there could be some delays for the smart city as we forecast urban solutions revenue of $2.3 billion by FY2026.”
The international defence business accelerated faster than expected over the past three years due to heightened geopolitical tension.
Tan and Lim continue that the previously communicated 2021 total addressable market (TAM) in international defence of US$5 billion ($6.7 billion) from 2022 to 2027 could be revised upward, with more information to be shared on markets in Eastern Europe and the Middle East.
The analysts note that most investors were positive about the outlook of the group’s defence business, given the milestones achieved over the past few years.
Defence-related business forms about 30% of ST Engineering’s group revenue as of 1HFY2024, with Singapore being the largest market.
“Among the large-cap industrial names under our coverage, ST Engineering’s earnings could be the most defensive with about 15% y-o-y growth in FY2025, driven by execution of projects from its order book of $26.9 billion,” write the analysts, who have kept their “buy” call and $5.30 target price on the stock.
ST Engineering recently announced a strategic agreement with Kazakhstan Paramount Engineering (KPE) to set up in-country production capability for a new 8x8 amphibious multi-purpose armoured vehicle.
Overall, the analysts believe capital management could be a focus area as the group prides itself on being one of “yield and growth”. “If there is no transformational M&A, we think the priority for the group would be to repay debt over the next three years. We see room for a higher dividend per share (DPS) of 18 cents or 19 cents based on a payout of around 70% for FY2025 and FY2026, respectively.” — Douglas Toh
Singapore Exchange Group
Price targets:
RHB Bank Singapore ‘neutral’ $12.80
Morningstar ‘three stars’ $13.10
Higher turnover for November but limited upside seen
Shekhar Jaiswal of RHB Bank Singapore has kept his “neutral” call on the Singapore Exchange (SGX), along with his $12.80 target price, following the release of monthly trading statistics that were in line with his estimates.
In November, SGX’s securities turnover and derivatives trading volume jumped, led by growing investor interest in Singapore equities and active trading in index stocks, especially banks and REITs, which boosted the securities turnover, observes Jaiswal in his Dec 9 note.
The key measure of securities daily average traded value (SDAV) was up 51% y-o-y to $1.44 billion.
Although the derivatives data was soft month-on-month, Jaiswal expects markets to remain volatile for a few months and support strong derivative volumes. “SGX’s share price has already delivered 29% returns this year, and we see limited additional re-rating catalysts,” he reasons.
According to SGX, Singapore was the most actively traded cash market in Asean and among Asia-Pacific developed markets.
The Straits Times Index led Asean markets with a 17-year high for three consecutive days.
In November, there were three new listings: the secondary listing of PC Partner Group, already quoted in Hong Kong, on the mainboard and Goodwill Entertainment and Attika Group on the Catalist.
Jaiswal expects the market to remain volatile in the near term as investors await the potential impact of President-Elect Donald Trump’s policy initiatives on economic growth, interest rates and global geopolitics.
Separately, Roy Van Keulen of Morningstar has kept his three-star rating on SGX, but with a slight 3% increase in fair value to $13.10.
“While the performance in the currencies and commodities segment has been strong, we expect growth to taper down in the second half of fiscal 2025,” says Van Keulen in his Dec 10 note. “The likelihood of tariffs and continued economic pressures in the region negatively impact investor sentiment and equity trading volumes,” he adds. — The Edge Singapore
Suntec REIT
Price target:
Morningstar ‘four stars’ $1.38
Reject Aelios’ ‘unattractive’ cash offer
Suntec REIT unitholders should reject investment holding vehicle Aelios’ “unattractive” cash offer of $1.16 per unit, says Morningstar Equity Research analyst Xavier Lee.
The offer, announced on Dec 5, “does not reflect the REIT’s intrinsic value”, adds Lee, who thinks the offer price should be “at or above” his fair value estimate of $1.38 per unit.
“In any case, Suntec’s unit price has rallied above $1.16 after this announcement and inves- tors can get more value selling in the open market,” Lee adds in a Dec 6 note.
Lee has kept his four-star rating on Suntec REIT against Morningstar’s five-tier scale. Suntec REIT units had closed at $1.23 on Dec 6, the previous trading day.
Lee’s note echoes RHB Bank Singapore’s Dec 6 report, which also advises unitholders reject the cash offer. RHB’s target price for Suntec REIT is even higher than Morningstar’s, at $1.35.
RHB analysts called the offer “well below” their target price, though the $1.16 offer price has set a “share price floor” at current levels.
According to RHB, the offer “severely undervalues” the REIT, whose net asset value is $2.07. RHB’s analysts also believe that Suntec REIT will be a prime beneficiary of further rate cuts in 2025 due to its high gearing and low fixed hedge position.
Indeed, according to a Nov 29 note from OCBC Investment Research, Suntec REIT will be the biggest beneficiary from the Monetary Authority of Singapore’s (MAS) rationalised leverage requirements, which provide “more buffer and financial flexibility”.
MAS announced on Nov 28 that S-REITs are now subject to a single aggregate leverage limit of 50% and a minimum in- terest coverage ratio (ICR) of 1.5 times. Suntec REIT’s aggregate leverage ratio of 42.3% as at Sept 30 is close to the previous limit of 45%.
OCBC says the move is a “marginal positive” for the sector, even though the majority of the S-REITs already have aggregate leverage ratios below 45% and ICRs “comfortably above” 2.5 times, even in the face of rising borrowing costs.
OCBC also predicts more breathing space for some S-REITs with significant overseas operations, especially those that have faced a spike in borrowing costs in US dollars and suffered declines in income due to operational headwinds.
The offer was triggered after Aelios, an investment holding vehicle of Gordon Tang and his wife, crossed the 30% ownership threshold for making a mandato- ry general offer on Dec 5 when it bought 62.5 million units, or 2.14% of the REIT’s units in the market, at $1.16 each.
As of June 30, Suntec REIT owns a $12.2 billion portfolio of income-producing office and retail properties in Singapore, Australia, and the UK. Based on asset values, the majority of its assets are offices (78%) and located in Singapore (69%).
Its flagship asset is Suntec City, one of Singapore’s largest integrated developments, which includes offices, retail and a convention centre. The trust is externally managed by ARA Trust Management (Suntec), a wholly-owned subsidiary of ESR Group that has a 9% stake in Suntec REIT. — Jovi Ho
Kimly
Price target:
UOB Kay Hian ‘hold’ 34 cents
Higher costs seen
UOB Kay Hian analysts Heidi Mo and John Cheong have slightly lowered their target price for Kimly from 35 cents to 34 cents following FY2024 ended Sept 30 earnings that came in below expectations, no thanks to higher operating costs ranging from utilities to labour.
Kimly recorded 2% y-o-y higher revenue of $319 million in FY2024, with contributions from new outlets and cleaning contracts. However, earnings were down 7% y-o-y to $32 million.
Despite the lower earnings, Kimly plans to pay a total FY2024 dividend of 2 cents, implying a yield of 6.3%. In contrast, Kimly paid a total of 1.68 cents for FY2023.
Mo and Cheong continue to rate Kimly a “hold” given its strong cash-generative ability, which can support its dividend policy of paying out at least 50% of its earnings.
They also note that despite the competitive industry landscape and mounting costs, Kimly is still expanding its network. In FY2024, it opened three new outlets, 11 stalls and two restaurants.
It also opened a new food court in Lucky Plaza and proposed the acquisition of a coffee shop at Block 204 Serangoon Central. “These new openings will contribute to better FY2025 earnings,” state Mo and Cheong.
Even so, they have lowered their FY2025 and FY2026 earnings projections by 2% each to account for higher labour costs. Their slightly revised price target of 34 cents is pegged to 12 times FY2025 earnings.
“Kimly continues to face persistent pressures in the challenging operating environment with the tight labour market and rising rental and utility costs,” the analysts note. — The Edge Singapore
Singapore Post
Price target:
Maybank Securities ‘buy’ 77 cents
S&P’s negative credit watch on SingPost is ‘irrelevant’
Jarick Seet of Maybank Securities has maintained his “buy” call on SingPost along with a 77 cents target price, on expectations that the company can return up to 86 cents per share to shareholders over the coming two years with its asset monetisation move starting to get underway.
Seet’s Dec 6 note refers to a Dec 5 note by ratings agency S&P that puts SingPost on negative credit watch, citing “uncertainty” over the company’s future earnings prospects.
SingPost is selling its key Australia-based unit, Freight Management Holdings, for A$1.02 billion ($1.61 billion) in cash. Upon completion of the divestment, SingPost will realise a gain of $312.1 million.
S&P believes that with Australia account ing for the bulk of SingPost’s earnings profile in recent years, the “loss of a key earnings pillar introduces uncertainty over the future strategy and earnings contribution”.
“It also unwinds management efforts over the past four years to diversify the business from earnings in structural decline and build a second-home base.
“The strategic backtracking highlights the uncertainty over the future direction of the company and calls into question the consistency and execution of the company’s stated strategy,” says S&P.
In response, Seet calls S&P’s move to put SingPost on a negative credit watch “irrelevant”.
“We believe that further non-core assets will be monetised and debt likely pared down in the near term following further asset sales,” says Seet, who estimates that SingPost can reduce its total debt from $895 million to $350 million with proceeds from the divestment.
He believes that SingPost’s finance expenses should be lowered significantly, too, given that it is paying more than 5% for its Australian-dollar-denominated debt versus just 3% for its Singdollar-denominated borrowings.
Seet estimates that coupled with its existing cash balance, SingPost’s cash position will increase to $1.3 billion versus the $1.1 billion in debt it currently carries.
He believes that SingPost’s proceeds from the divestment will not be reinvested but, following debt re- payment, paid out to shareholders in the form of spe- cial dividends.
According to Seet, other possible divestments will include another Australian unit, Famous Holdings, SingPost Centre, and some of its post offices.
“All in all, we expect potentially up to 86 cents per share in dividends in the next two years after monetising its non-core assets and paring down debt,” says Seet.
According to Seet, SingPost has a clearer roadmap for returning shareholder value. “We think the downside risk is now limited and maintain a conviction ‘buy’ on SingPost over its asset monetisation story. “Its key shareholders are also monetising non-core assets to return to its own shareholders,” says Seet.
Singtel, with more than a fifth of the shares, is SingPost’s largest shareholder and is well underway on a multi-year asset recycling plan of its own. — The Edge Singapore
PropNex
Price target:
RHB Bank Singapore ‘unrated’
Stellar 2025 on surging new home sales
PropNex is expected to record strong FY2025 earnings ending Dec 31, 2025, backed by surging new home sales, according to RHB Bank Singapore analyst Vijay Natarajan in an unrated report.
He notes that recent mega launches in November saw strong demand, exceeding market expectations.
This is likely to push new home sales for November to above 2,200 units, the highest level since 2013.
Natarajan points out that earnings commissions from November will likely be recognised next year, as there is typically a two- to six-month lag in sales recognition.
Additionally, the expected launch of about 15,000 units next year is double that of the estimated 7,500 units this year.
“With sales momentum likely to continue, driven by pent-up demand, moderation of mortgage rate packages from rate cuts and continued strong economic growth, we expect new home sales to be over 50% higher y-o-y in 2025 at 9,500–10,500 units.
“As this segment is a key earnings growth driver for PropNex, this should boost its net profit. We also expect resale transactions to rise 10%–15% next year on the back of a spillover effect from new launches,” he adds.
RHB highlights that the new launch segment has higher gross margins — typically in the teens and double that of the resale segment, where margins are in the high single digits.
PropNex also has a cash pile of $116 million, no debt, and minimal capital expenditure requirements.
Since its IPO, the company has been paying 70%–93% of its earnings as dividends, offering a highly attractive dividend yield of about 7%.
Natarajan notes that the company has alluded to the possibility of paying special dividends next year on its 25th anniversary.
“Other options for cash include potential asset acquisitions or mergers and acquisition opportunities in Singapore and overseas,” he says, adding that the company is not in a rush to deploy its cash.
For FY2024, Natarajan thinks the company will record soft earnings due to low transaction volumes. However, he reiterates that PropNex should stage a strong recovery in FY2025. — Khairani Afifi Noordin
Raffles Medical Group
Price target:
RHB Bank Singapore ‘neutral’ 90 cents
Dialling back turnaround expectations for insurance arm
RHB Bank Singapore analyst Shekhar Jaiswal has kept “neutral” on Raffles Medical Group (RMG) with a lower target price of 90 cents after fine-tuning and trimming the company’s FY2024 to FY2026 earnings by 12%–7%.
This is largely to account for the slower reduction in the company’s insurance business losses. During its 1HFY2024 ended June 30 results briefing, RMG noted that it expects a strong ramp-up in its insurance business in the coming years.
RHB believes this will be aided by more people taking up private healthcare insur- ance to cover the rising healthcare costs.
Nevertheless, the company guided that if the current business situation of a higher loss ratio prevails, the insurance business could report losses for up to three years.
“We had earlier expected a rapid turnaround in its insurance business but are slightly more cautious on our expectations now,” Jaiswal says.
RMG also announced the retirement of its CFO, Sheila Ng, from Nov 12. While the company searches for a new CFO, Kimmy Goh, its long-time financial controller, will assume the responsibilities of that position.
Jaiswal does not see this change in management as a reason for disruption in the company’s business operations. RHB also highlights that since late February, RMG’s executive chairman,
Dr Loo Choon Yong, has been gradually increasing his total stake in the group.
Loo’s holdings increased to 55.59% as of the end of November from 53.02% early this year. Overseas operations will drive RMG’s growth in the longer term. That said, RHB sees limited positive rerating catalysts in the near term. — Khairani Afifi Noordin
Marco Polo Marine
Price target:
Maybank Securities ‘buy’ 8 cents
All engines firing
Maybank Securities analyst Jarick Seet has maintained “buy” on Marco Polo Marine (MPM) with a target price of 8 cents following the company’s FY2024 ended Sept 30 results release.
In his Dec 3 note, Seet highlights that MPM”s FY2024 revenue dipped 2.8% y-o-y to $123.5 million, mainly due to the drop in repair and maintenance revenue caused by the delay of its commissioning service operation vessel (CSOV).
The delay led to fewer third-party repair works in 3QFY2024, which also caused a shortage of staff to work on third-party repairs.
These issues, however, have been resolved, and utilisation of its repair capacity has risen from 50% to about 75%, Seet adds.
“We also expect more volume driven by the expansion of its fourth dry dock, which could see revenue rise 25%. The crew transfer vessels (CTVs) that it acquired are operational and will also help to boost profitability with rates expected at around US$8,000 per day,” he says.
Maybank expects MPM to add another one or two CTVs by end-2025, increasing its CTV fleet to up to five vessels.
MPM’s CSOV is close to completion and should sail to Taiwan by end-January 2025.
Although issues may arise in the first six to eight months — potentially bringing down its initial utilisation rate — it should be smooth sailing by FY2026, says Seet. Maybank believes that the utilisation for the first two years will be close to 95%, with rates averaging around US$50,000 ($67,120) per day.
This should make a sig- nificant contribution to its profitability, he further points out. “FY2025 should be a good year for MPM as all engines will start firing. We think this is a good time to accumulate MPM with the outlook clear ahead,” he adds. — Khairani Afifi Noordin
Singapore Telecommunications
Price target:
Morningstar ‘four stars’ $3.46
Improving numbers from Optus
Morningstar analyst Dan Baker has somewhat reversed his previously conservative stance on Singapore Telecommunications (Singtel), raising his fair value for the counter slightly from $3.37 to $3.46, along with his four-star rating.
Just over a month ago, Baker downgraded Singtel’s moat rating to no-moat mainly because of Optus’ poor profitability, which has averaged operating profit of $240 million per year over the past four years at an estimated return on invested capital of under 2%.
In his most recent note on Dec 3, Baker observes that for 1HFY2025 ended Sept 30, Optus increased ebitda by 7.4% with revenue up 4.1%, while costs were cut by A$80 million ($69 million).
This helped drive the telco’s underlying net profit by 6% y-o-y and ebitda up 9% y-o-y in 1HFY2025 despite flat revenue. “We see this as a good start to recovery and should be helped by mobile price rises taking effect in early September, but it is a long way from returning the cost of capital.”
He notes that while Singtel’s domestic Singapore mobile revenue was up 4.1%, the growth was offset by declines from various fixed-line revenue streams.
“Mobile competition remains high in Singapore with speculation about potential consolidation,” says Baker.
His higher fair value of $3.47 takes into account better forecasts for Optus and Singapore domestic businesses, which should more than offset a 3% reduction in the value for its associates based on updated share prices. “At current prices, we see Singtel as slightly undervalued,” says Baker. — The Edge Singapore
Paragon REIT
Price target:
UOB Kay Hian ‘unrated’
Potential acquisition target
UOB Kay Hian (UOBKH) introduces the idea that Paragon REIT (former SPH REIT) has been divesting assets, and this could be a precursor to an M&A.
On Nov 22, Paragon REIT entered into a putand-call option to divest Figtree Grove Shopping Centre at Wollongong, Australia, for A$192 million ($165 million) or a 5% premium above valuation.
Pro forma 2023 DPU is expected to drop 1.8% to 4.80 cents post-divestment.
Pro forma NAV per unit as of end-December 2023 is expected to fall 2.2% to $0.90.
The divestment is expected to be completed in 1Q2025. Upon completion, Paragon REIT will have three retail properties: Paragon, Clementi Mall and Westfield Marion. Singapore would account for 83% of net property income (NPI) and 87% of assets under management (AUM).
The sale price of A$192 million for Figtree Grove Shopping Centre is above the independent valuation of the property of A$183 million as at Oct 31. SPH REIT had acquired Figtree Shopping Centre for A$175.1 million in 2018. At that time, the purchase price translated into $175.1 million.
As a result, there is likely to be a loss in translation. In June, Paragon REIT divested Rail Mall for $78.5 million, above its last valuation and the purchase price of $63.2 million.
“Valuation of Singapore assets increased 3.4% or $116 million due to improved performance from Paragon and Clementi Mall. Valuation for Westfield Marion declined 5.3% to A$580 million as capitalisation rate expanded 25 bp to 6.25%. Net asset value per unit increased 3.3% to $0.94,” observes UOBKH.
The broker adds that Paragon REIT’s Singapore properties continue to perform well. Gross revenue and net property income (NPI) increased 3% and 4.5% y-o-y respectively in 1HFY2024 for the two Singapore properties.
NPI margin improved 1.1 percentage points (ppt) y-o-y to 75.2%.
NPI from Paragon and Clementi Mall grew 6.3% and 11.1% y-o-y respectively. “New sponsor Cuscaden Peak is a consortium made up of Hotel Properties , Mapletree Investments and CLA Real Estate Holdings.
Large-cap S-REITs within the consortium, such as CapitaLand Integrated Commercial Trust (CICT) and Mapletree Pan Asia Commercial Trust (MPACT), could potentially make an offer to acquire Paragon REIT,” UOBKH suggests.
Other market observers says the REIT may have received offers for Paragon.
Whatever the case, UOBKH says continued recovery in visitor arrivals and tourism receipts are likely to be share price catalysts. Resilient domestic consumption and limited supply of retail space along Orchard Road are additional catalysts.
Otherwise, the unit price is fairly valued since Paragon REIT is trading at post-divestment pro forma DPU yield of 5.49%. UOBKH does not have a rating for the REIT. —The Edge Singapore
