Pending further positive developments
Derek Tan of DBS Group Research notes two positive updates from Mapletree Industrial Trust (MINT) (SGX:ME8U
) . However, he prefers to keep his “hold” call for now, pending further improvements before changing his recommendation. “In our view, much of the negativity is already reflected in the share price, raising the possibility for positive surprises should leasing momentum continue to improve,” says Tan, whose target price is $2.05.
Firstly, MINT is divesting its Philadelphia Data Centre at 2000 Kubach Road, which has been vacant since the end of 2024, for US$14.5 million ($18.5 million), as part of its proactive capital recycling strategy. The sale price, which was at a 4.3% premium to the last valuation, is, in Tan’s view, a “constructive” move that allows MINT to monetise a smaller, non-core asset while redeploying capital towards debt repayment.
Next, MINT is starting to see the fruits of its active pro-leasing efforts in the US. Ahead of a lease expiry in 1QFY2027, MINT secured a replacement tenant for 2301 West 120th Street, Hawthorne, on a 10-year term with annual escalations, while also locking in a five-year extension at 1400 Kifer Road, Sunnyvale, also with annual escalations. “This should help reduce vacancy drag and improve income visibility after earlier lease non-renewals,” says Tan.
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In his view, investors have yet to fully appreciate the active management of MINT’s US portfolio, including the divestment of non-core assets, alongside ongoing efforts to de-risk the REIT’s cash flow profile through proactive asset management initiatives.
Key overhangs heading into FY2027 remain, namely the lease expirations of the larger AT&T San Diego and 1001 Windward Concourse assets. These two properties alone account for 4% of MINT’s portfolio revenue.
The replacement tenant secured for Hawthorne supports Tan’s view that operational headwinds could begin to moderate over the coming quarters, though there are some reservations. “Investors remain justifiably cautious over the prospect of continued DPU declines in the near term, and we believe MINT may be approaching a gradual bottoming phase,” says Tan.
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Meanwhile, MINT’s valuation appears “undemanding”, given that it is trading at just 1.14 times P/B and at a yield spread of close to 4.1% — levels that are near five-year valuation troughs and near cyclical highs for implied yields. — The Edge Singapore
IHH Healthcare
Price target:
DBS Group Research ‘buy’ $3.39
Singapore operations to improve
Amanda Tan of DBS Group Research has maintained her “buy” call on IHH Healthcare (SGX:Q0F) following its 1QFY2026 results, which showed “steady” core earnings growth, albeit somewhat marred by unfavourable forex movements. For the three months to March, IHH reported earnings of RM545 million ($175 million), up 5% y-o-y, in line with expectations. Revenue in the same period was up 3% y-o-y to RM6.5 billion.
In Malaysia, the company recorded a 16% improvement in its ebitda, with revenue up 7%. Even though inpatient admissions dropped 3% supposedly due to a longer holiday season, ebitda margin was held at 26% and IHH is guiding for this metric to remain in the mid-20s.
IHH generated a 12% increase in inpatient revenue per admission, driven by higher-acuity cases, growing demand from foreign patients, and continued double-digit growth in daycare. Foreign patients contributed 15% of Malaysia’s revenue in 1Q2026.
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India did well, with ebitda up 26% and revenue up 18%, driven by higher inpatient admissions and higher average revenue. IHH’s two hospital brands in India, Gleneagles and Fortis, are seeing greater integration, suggesting further upside from synergies across procurement, IT, and management.
Turkey & Europe recorded strong growth with revenue and ebitda up 45% and 73% respectively in constant currency. Hong Kong was more muted with revenue up 2% and ebitda down 8%.
In Singapore, the numbers were affected by what Tan calls a “structural shift” towards public healthcare, softer medical tourism numbers due to higher airfares and a weaker rupiah. Revenue was down 7% and ebitda down 13%. Even so, with the refurbishment of Mount Elizabeth completed and occupancy set to improve, IHH’s Singapore operations are seen to bottom out and recover in the second half of the year.
IHH’s management reaffirmed overall FY2026 revenue growth guidance of 10%–12% and ebitda margin of 22%–24%, underpinned by recovering volumes, tighter cost control and better use of existing assets.
Cost inflation is also being closely monitored, particularly for drugs, consumables, shipping and insurance. However, one- to two-year rate contracts, group procurement and longer-term energy contracts provide some near-term protection. Forex remains a more significant reporting headwind, as earnings translation is unhedged, says Tan.
All in, Tan has slightly raised her target price from $3.26 to $3.39. — The Edge Singapore
Elite UK REIT
Price targets:
PhillipCapital ‘buy’ GBP0.41
RHB Bank Singapore ‘buy’ GBP0.41
Multi-year data centre-led growth
PhillipCapital and RHB Bank Singapore analysts have maintained their respective “buy” calls on Elite UK REIT (SGX:MXNU) following a recent site visit to the REIT’s assets in London, Kent and Cardiff.
The REIT owns a portfolio of 148 properties across the UK that are predominantly rented to the Department for Work and Pensions (DWP), which operates Jobcentre Plus, a government-funded employment agency and social security office, which aims to help people of working age find employment in the UK.
At the same time, DWP also administers claims for benefits such as income support, incapacity benefit, universal credit, jobseeker’s allowance and employment support allowance.
Jobcentre Plus provides training opportunities and resources to help jobseekers find work through Jobpoints, a touchscreen computer terminal at the office that allows jobseekers to apply for jobs by phone or via a website.
“Our site visit across London, Kent and Cardiff confirmed our views that the visited jobcentres are operationally critical to DWP’s daily service delivery, financial support claimant volumes at the jobcentres are at record highs and rising and select assets offer repositioning optionality,” says PhillipCapital’s Hashim Osman in his May 25 note.
The REIT continues to achieve portfolio stability as it recently signed new leases with DWP in February, which secured rents linked to the Consumer Price Index (CPI), which are floored at 1% and capped at 5% per annum and will commence in April 2028, says Hashim, who is keeping his “buy” call with unchanged target price of GBP0.41, based on the Dividend Discount Model (DDM).
The recent site visit reinforced the critical nature of Elite UK REIT’s UK Government social infrastructure portfolio, says RHB Bank Singapore’s Vijay Natarajan in his May 28 note.
“Although some of the assets could be consolidated in future, Elite UK REIT’s pivot into the living sector offers repurposing ability to extract upside potential from the housing supply shortage in the UK,” says Natarajan.
Some of his takeaways were that DWP’s physical offices remain critical amid rising unemployment and a transforming job market, and that asset utilisation by tenants and end users has improved.
“Furthermore, prime asset location and standalone facilities with freehold land title provide good alternate usage such as living sector opportunities in the medium term, while the shortage of quality living sector assets due to permit and construction delays, against the backdrop of strong demand,” Natarajan adds.
At the same time, despite rising concerns about the inflationary impact of the Middle East conflict, Natarajan shares that Elite UK REIT’s portfolio is partially mitigated by triple-net leases and a strong government tenant credit profile.
As such, Natarajan maintains a “buy” rating on Elite UK REIT and a target price of GBP0.41. This translates to a potential upside of 21% and a 9% distribution yield. “While the REIT is not fully immune to macroeconomic headwinds in the UK, its stable cash flow profile from the sovereign tenant offers value at 9% distribution yield,” the analyst concludes. — Teo Zheng Long
Addvalue Technologies
Price target:
Maybank Securities ‘buy’ 34 cents
Much stronger year ahead
Jarick Seet of Maybank Securities has turned more bullish on Addvalue Technologies (SGX:A31) after the communications company’s full-year results came in above his expectations. From 31 cents, Seet says the stock is worth 34 cents, as he expects the strong growth momentum to continue.
“Besides AI, Addvalue is benefiting from two of the most exciting and highest-growth themes: drones and space. We expect a rapid growth phase in the next few years after its turnaround in FY2025 and it thus ranks as one of our top picks in the small-cap tech space,” says Seet in his May 25 note.
In FY2026 ended March, Addvalue reported patmi of US$4.8 million, up 148% y-o-y, led by a 60% jump in revenue to US$24.8 million.
Addvalue has two key operating segments. The first inter-satellite data relay service (ISDR) saw revenue jump 61%. “Based on feedback from customers, management expects more terminals to be delivered, accompanied by more satellite launches in the next 12 months,” says Seet. This segment was recently renamed the space connectivity-related business, or SPC.
The other key segment, advanced digital radio (ADR), also saw 58% revenue growth as it gained traction in the anti-drone and smart radio frequency sensing industries.
As at end FY2026, Addvalue’s order book stands at US$23.1 million and Seet expects more orders from both segments. Seet notes that the company is now undergoing renovations to double its capacity to 200 units per year, suggesting the current FY2027 will be a “much stronger” year.
Now, besides the growing orders momentum, what makes Addvalue interesting too is the planned spin-off of its space connectivity unit for its own Nasdaq listing, which Seet calls a “potential game changer”. “With US valuations far higher than in Singapore, we estimate a potential market cap in the US$200 million to US$300 million range and the potential to return some cash to shareholders if it successfully lists its ISDR arm in the US.
“It will also put Addvalue at the forefront of the space/satellite scene and present more M&A opportunities. Its Singapore valuation could rise if the Nasdaq-listed arm value is much higher than Addvalue’s market cap in Singapore,” adds Seet.
Seet has kept his valuation multiple at 30 times FY2027 price-to-sales, which he points out is a 65% discount to global peers. He has raised his FY2027 and FY2028 earnings estimates by 3.7% and 2.3%, respectively, leading to a higher target price of 34 cents. — The Edge Singapore
Nordic Group
Price target:
PhillipCapital ‘buy’ 68 cents
More orders in the book
Hashim Osman of PhilliPCapital has raised his target price for Nordic Group (SGX:MR7) after the company’s 1QFY2026 earnings rose 11% y-o-y to $5 million, with further growth ahead driven by a larger order book.
In 1QFY2026, net profit margin increased by 120 basis points to 12%. The ongoing shift towards more complex Floating Production, Storage and Offloading (FPSO), semiconductor and defence projects supports further margin accretion. Also, the company is set to enjoy some tailwinds from more favourable forex movements, says Hashim.
The company has been growing its order book, lifting earnings visibility down the road.
Year to date, Nordic won total orders worth $54.5 million, with nearly half from semiconductor and marine, which account for 15%. There is also a “medium-sized” defence contract between $6 million and $20 million that is expected to be awarded, says Hashim.
The latest confirmed orders have grown Nordic’s order book by 8% y-o-y to $213.5 million. The company is eyeing a well-diversified pipeline of orders with $135 million in defence, $142 million in semiconductors and $61 million in the marine sector.
The analyst expects Nordic’s revenue to ramp up from 2Q26 onwards, particularly driven by the Thailand precision-engineering battery storage contracts.
As at the end of 1QFY2026, the company has also built up a stronger net cash position of $10.2 million, an increase of 149%.
Nordic had previously indicated plans to allocate between $3.6 million and $3.8 million in capex for its manufacturing operations in Thailand. The company also plans to make acquisitions, as it has done numerous times before.
“We believe a special dividend is possible if cash continues to build, with deployment needs taken into account,” says Hashim, who has raised his target price for Nordic, which is now trading at just 8.4 times FY2026 earnings, from 63 cents to 68 cents. — The Edge Singapore
Valuetronics Holdings
Price targets:
UOB Kay Hian ‘buy’ $1.88
PhillipCapital ‘accumulate’ $1.29
Earnings and capital returns visibility
Valuetronics Holdings (SGX:BN2) has reported lower earnings for FY2026 due to an impairment of an underperforming associate.
However, John Cheong and Heidi Mo of UOB Kay Hian have nearly doubled their target price from $1.03 to $1.88, citing the manufacturer’s improved earnings visibility, shift towards higher-margin products, and a clear capital return plan.
For the year ended March, Valuetronics recorded revenue of HK$1.65 billion, down 4% and in line with expectations.
The company reported earnings of HK$111 million ($18.11 million), down 33.1%, due to a HK$48.4 million impairment charge related to Trio AI. If excluded, the bottom line would have been HK$160 million, down 4%.
The impairment of Trio AI was recognised due to weaker-than-expected demand. Valuetronics is weighing options such as recovering value from the GPUs by redeploying the hardware or selling them to other companies, potentially recouping around HK$130 million by the end of 2026, according to Cheong and Mo.
That aside, the analysts believe that with a more favourable product mix, Valuetronics can expect its gross margin, which was at 18.8% in FY2026, to remain at a “healthy” level in the future.
From their perspective, what is also interesting about the company is its capital management. Even with lower earnings, the company plans to pay final and special dividends, bringing its full-year total to 38 HK cents, up from 27 HK cents in the preceding year.
Backed by its strong cash position of HK$1.2 billion, the company has launched a plan to return HK$300 million to shareholders over two years. For one, it will improve its dividend payout policy from 30% to 50%, and then to 50% to 70%.
In the current FY2027, it is allocating around HK$66 million in special dividends and at least HK$80 million in share buybacks. The remaining HK$154 million will be used in FY2028.
Meanwhile, Cheong and Mo, citing improving earnings visibility and a positive shift toward higher-margin products, have applied a higher valuation multiple of 19 times ex-cash FY2028 earnings, up from 13 times previously, resulting in a higher target price of $1.88, up from $1.03.
The analysts note that Valuetronics is now trading at just 10 times FY2028 ex-cash earnings and offers an attractive FY2028 dividend yield of about 6%.
“We believe valuations remain undemanding, given Valuetronics’s defensive earnings profile and strong cash generation,” state Cheong and Mo.
For Paul Chew of PhillipCapital, earnings were below his expectations, but he has maintained his “accumulate” call amid the company’s active capital-management moves.
For FY2027, Chew has lowered his earnings by 12% to HK$163 million to account for higher effective tax. However, he has applied a higher valuation multiple to the stock, from 13 times P/E to 20 times FY2027 earnings, to be in line with the industry’s re-rating. As such, Chew’s new target price for the stock has been raised from 96 cents to $1.29.
Chew warns that there will be two “major drags” on earnings this year: the phasing out of legacy consumer electronics products and higher effective tax rates.
On the other hand, investors may like the 5.4% dividend yield, supported by a special dividend of at least 16 HK cents, plus HK$80 million in shares to be bought back this year. — The Edge Singapore
UI Boustead REIT
Price target:
Maybank Securities ‘buy’ $1.03
Stable yield and visible growth
Maybank Securities analyst Krishna Guha has initiated a “buy” call on UI Boustead REIT (SGX:UIBU) , citing visible growth and a stable yield.
UI Boustead REIT’s portfolio of 23 assets in both Singapore and Japan spans 5.3 million sq ft of net leasable area (NLA). The REIT is well diversified across sub-sectors such as logistics, business space, Hi-spec industrial and general industrial.
“Portfolio occupancy of 89.4% is expected to move to above 95% through lease-up of spaces in Japan. With a long weighted average lease expiry of 5.8 years, built-in rental escalations of 2.8% and occupancy uplift of 1.7%, the portfolio offers visible organic distribution per unit (DPU) growth of 4.8% for FY2027,” notes the analyst in his June 1 report.
At the same time, the REIT’s sponsor and Boustead Projects have provided a growth pipeline worth US$5.9 billion ($7.5 billion), alongside other co-development opportunities. For one, the REIT manager has embarked on developing a logistics asset in Japan adjacent to an existing asset with a yield‑on‑cost of 4.8%, says Guha.
Apart from the development pipelines, the REIT’s recent announcement that it has locked in electricity tariffs for three years is a positive sign as it can help mitigate volatility in operating costs.
Based on the IPO projections and progressive stabilisation of upcoming asset enhancements, Guha predicts that UI Boustead REIT’s DPU could come in at 6.8 cents for FY2027 and 7.1 cents for FY2028.
As such, he is initiating coverage on UI Boustead REIT with a “buy” recommendation and dividend discount model-based target price of $1.03.
“We believe the strategically located assets within established industrial clusters in Singapore and Japan, catering to reputable tenants in the high-tech and innovation-driven sectors, will augur well for income resilience and organic growth,” says Guha.
Furthermore, the sponsor’s expertise as a Pan-Asian industrial real estate platform provides access to inorganic growth.
And of course, its valuations are deemed “attractive” compared to peers, with an 8.3% FY2027 yield and a 0.93 times P/B ratio, he adds. — Teo Zheng Long
