DBS Group Research is maintaining a “hold” rating and a target price of 80 cents on Genting Singapore (GENS) amid renovations for RWS 2.0, a major expansion and transformation project for Resorts World Sentosa (RWS). The group is set to spend about $6.8 billion on the upgrade, which is expected to open progressively through 2030.
Meanwhile, Marina Bay Sands (MBS), RWS’s competitor in Singapore, reported strong y-o-y growth in gaming volume across all segments. VIP rolling volumes in Singapore-dollar terms surged 34.5% y-o-y, while mass table and slot volumes rose 16.7% and 5.9%, respectively. Win rates also improved across the board, with the VIP segment rebounding from a low of 1.75% to 4.84%, driving a 272% y-o-y increase in VIP gaming revenue.
“Hotel operations remained robust despite broader softness in Singapore’s hospitality sector, with occupancy edging up from 95% to 96% and average daily room rates climbing 5.8% to $1,260,” says DBS.
RWS has mainly completed its major renovations at The Weave and The Oceanarium in early 3Q2025.
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“We believe the company is ready to drive higher traffic and potentially higher gaming volumes growth. However, we believe growth is likely to continue lagging behind MBS, particularly in the VIP segment, as we understand that the company has conservative, scaled-back credit extensions to VIP customers and The Laurus, its new luxury hotel that serves as a key draw for premium players, officially opening only in 4Q2025,” notes DBS.
For RWS, hotel performance could see only modest improvements in occupancy and room rates in 3Q2025, as mainstream tourists remain cost-conscious amid soft regional macroeconomic conditions and a strong Singapore dollar, leading to continued softness in Singapore’s mid-tier hospitality market.
The planned opening of The Laurus in 4Q2025, catering to ultra-premium guests, could provide some uplift to the company’s hospitality segment, according to DBS’s view. “That said, early reviews have been mixed as the company refines its approach to serving high-end clientele,” says DBS, while remaining cautious on the near-term outlook. — Samantha Chiew
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Sanli Environmental
Price target:
Maybank Securities ‘buy’ 50 cents
Latest contract win from LTA
Jarick Seet of Maybank Securities has maintained his “buy” call on water and waste project developer Sanli Environmental (Sanli) and raised the target price from 38 cents to 50 cents following the latest contract win from Land Transport Authority (LTA).
In his note dated Oct 23, Seet believes Sanli’s multi-year growth story remains intact after securing a maiden $281 million project with LTA. This is the company’s largest contract secured to date and will significantly boost Sanli’s orderbook to a record $614.9 million.
“We view this as public sector validation of its capabilities and track record in the maintenance and equipment (M&E) space for large-scale projects. We also believe that Sanli has a good opportunity to add $205 million to its orderbook by the end of 2025 through the Public Utilities Board (PUB) tender it participated in July, which could boost its orderbook to $800 million,” says Seet.
Apart from the higher order book, Seet is confident that this maiden contract with LTA will open up a new revenue source for Sanli and is a testament to its M&E capabilities for large-scale projects.
The analyst believes that the record order book could translate into record revenue and profit for Sanli, assuming there are no execution issues, setting the stage for a multi-year growth boom from FY2026 to FY2028.
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In the longer term, Seet believes Sanli is well-positioned for sustained growth, driven by PUB water-related projects and anticipated Long Island tenders as part of Singapore’s climate change mitigation efforts.
With the latest contract win, Seet has lifted his FY2026 and FY2027 patmi estimates by 11% and 14.8%, respectively, which resulted in a new target price of 50 cents based on a 16 times FY2027 P/E ratio. — Teo Zheng Long
Marco Polo Marine
Price targets:
Maybank Securities ‘buy’ 11 cents
RHB Bank Singapore ‘buy’ 10 cents
Brighter growth ahead
Maybank Securities and RHB Bank Singapore have raised their respective target prices for Marco Polo Marine, citing brighter growth prospects ahead.
In September, Marco Polo Marine made two announcements. The first, on Sept 8, was a collaboration with Salt Ship Design to construct its new commissioning service operation vessel (CSOV). Construction will commence in 2Q2026 with delivery scheduled for 2Q2028.
Marco Polo Marine’s current CSOV generates about US$50,000 ($64,952) to US$60,000 per day, or US$17.5 million in revenue, based on an 80% utilisation rate. This could also bring a net profit after tax (NPAT) of US$5 million to US$6 million annually, which is “quite significant”, says Jarick Seet of Maybank Securities, who has kept his “buy” call with a higher target price of 11 cents from 9 cents previously.
On Sept 24, Marco Polo Marine also announced that it will expand its fleet with anchor-handling tug supply (AHTS) vessels, which will be added next year.
“We expect these new vessels to significantly contribute to Marco Polo Marine’s patmi from FY2027 to FY2030 when ready,” Seet writes in his Oct 24 report, but adds that he will wait for confirmation before incorporating it into his forecasts.
The listing of Marco Polo Marine’s subsidiary, PKRO, in Taiwan will also boost the former’s valuation, as its Taiwan-listed peers trade at P/E ratios of over 20.
“By listing in Taiwan, Marco Polo Marine is positioning PKRO at the epicentre of one of Asia’s most ambitious offshore wind development programmes,” says Seet.
“Marco Polo Marine should also be able to raise funds at a better valuation and expand its fleet size at a faster pace. It should be able to secure loans at a lower interest rate, which should lower its financing costs,” it adds.
Overall, Marco Polo Marine’s financial performance is expected to improve in 4QFY2025 ended Sept 30, with its FY2026 earnings projected to outperform the company’s 1HFY2025 performance.
Earlier, RHB Bank Singapore’s Alfie Yeo increased his target price to 10 cents from 8.5 cents. “Fundamentally, [the] outlook for Marco Polo Marine remains robust,” says Yeo, who has maintained his “buy” call.
Marco Polo Marine’s new dry dock, its fourth, is expected to ramp up operations in 2026, while its newly deployed commissioning service operation vessel (CSOV) is also expected to contribute meaningfully from the same year. The company also announced on Sept 24 that it will add two new AHTS vessels to its fleet next year.
To this end, Yeo has increased his earnings estimates for FY2026 and FY2027 by 8% and 10%, respectively, to $32 million and $35 million, to account for the new AHTS vessels and ship chartering contracts. Marco Polo Marine announced on Sept 17 that it had secured $100 million in contracts.
In that announcement, the company also stated that its ship chartering order book, as at June 30, stood at $100 million. That amount is expected to be booked over the next three years, with its vessels deployed across Taiwan, Thailand and Europe.
The higher estimates reflect strong revenue and earnings contributions but are offset by higher interest costs, Yeo writes.
Yeo’s target price represents an FY2026 yield of 1% at the end of Sept 30. His forecasts are based on a higher fleet size, improved charter rates and stronger utilisation rates. Any underperformance would pose downside risks, Yeo adds. — Felicia Tan
Suntec REIT
Price targets:
RHB Bank Singapore ‘buy’ $1.60
DBS Group Research ‘buy’ $1.40
OCBC Investment Research ‘hold’ $1.30
Stronger 3QFY2025, rates to dip lower
Analysts have turned more positive on Suntec REIT after its 3QYF2025 ended Sept 30 results came in above expectations, with distribution per unit up 12% y-o-y to 1.778 cents, due to a combination of stronger performance across its Singapore assets, lower financing costs, as well as a reversal of withholding tax provisions for its Australian assets.
The REIT achieved rental reversion rates of 8.5% and 8.6% for its office and retail portfolios in Singapore, respectively.
The aggregate leverage ratio is stable at 41.0%, with its cost of debt down 20 basis points (bps) q-o-q to 3.62%.
“Tailwinds from sharp interest cost declines are becoming visible, with further declines anticipated in 2026,” says Vijay Natarajan of RHB Bank Singapore.
“Operationally, its Singapore outlook — though moderating — remains positive, with upside potential seen from overseas assets,” says Natarajan, who has kept his “buy” call and raised his target price from $1.48 to $1.60.
He points out that Suntec is still trading at a 34% discount to its book value and remains a potential M&A target and internalisation candidate.
Dale Lai of DBS Group Research, citing lower interest rates across the markets where the REIT operates, believes that investors’ concerns over its capital values and the erosion of interest rates will gradually turn into tailwinds.
He calculates that a 50 bps drop in interest rate could mean a 10% upside to DPUs, which he has not priced in.
Lai, who has upgraded the stock from “hold” to “buy”, points out that Suntec REIT is trading at an attractive 0.6 times P/B with forward yields of 5.3%. In contrast, the REIT’s peers trade at between 0.8 times and 0.9 times. “We believe this relationship could be called into question over time,” he says.
Lai, who has a target price of $1.40 for this counter, suggests that a potential divestment of its one-third stake in its Marina Bay Financial Centre and One Raffles Quay assets could raise more than $1 billion in capital, which could be accretive.
OCBC Investment Research, too, has raised its fair value but maintains a more conservative stance with its “hold” call. From $1.21, OCBC now values Suntec REIT at $1.30.
OCBC points out that Suntec REIT’s Singapore operations have continued to gain good traction, achieving robust rental reversions for both its retail and office portfolios. Its convention business has also recovered faster than expected.
“However, rental reversions for its Singapore office assets are likely to moderate ahead, and there continues to be uncertainties over the longer-term impact of work from home trends, although more employers appear to be encouraging their employees to return to their offices,” says OCBC.
In Australia and the UK, Suntec REIT’s office portfolio has been impacted by impairments to asset valuations, driven by higher capitalisation rates and some pressure on occupancy rates, adds OCBC. — The Edge Singapore
City Developments
Price target:
DBS Group Research ‘buy’ $9
‘Standout’ among developers
Singapore’s private residential market remains hot, with three consecutive hot launches. Zyon Grand, a joint venture between City Developments (CDL) and Mitsui Fudosan, was the latest such fast-moving project, with 590 units sold at 84% and an average price of around $3,050 psf.
From the perspective of DBS Group Research, the robust sales performance of Zyon Grand was anticipated, underpinned by its convenience as an integrated development directly connected to Havelock MRT Station, and its prime lifestyle appeal within the sought-after River Valley neighbourhood.
“This adds further momentum to CDL’s solid residential track record and strengthens its income visibility over the coming years,” says DBS, adding that most of its recent residential launches, such as Lumina Grand EC, Kassia, Norwood Grand, and Union Square Residences in 2024, as well as The Orie in 2025, have achieved healthy sell-through rates, leaving the CDL with a relatively low level of unsold inventory.
Meanwhile, CDL has been actively replenishing its landbank by acquiring sites at Lakeside Drive, Woodlands Drive 17, and Senja Close.
DBS estimates that strong sell-through rates will lock in around 40 cents upside to its RNAV. While DBS’s top picks for developers include UOL Group, with a target price of $8.8 and GuocoLand, with a target price of $2.50, it sees CDL as a “standout”. For one, CDL, with a target price of $9, is a large-cap counter trading at an attractive 60% discount to its revalued net asset value, a steeper discount than UOL and GuocoLand.
A potential special dividend could also be on the cards when it reports FY2025 results, supported by significant gains from the recent divestment of its South Beach stake, estimated at 60 cents per share. — The Edge Singapore
