Singapore Equity Picks

NTT DC REIT: Raise exposure by 7,000 shares @ USD0.935

Our earlier decision to pare exposure @ USD0.98 on 20 May turned out well with the stock subsequently falling as much 8%. We raise exposure following a stronger-than-expected 1QFY26/27 business update, with 1Q distributable income beating its IPO projection by 10.6% while leasing momentum pushed committed occupancy towards full capacity. Stock offers >8% forward yield. Our fundamental TP for the stock is USD1.30, in line with consensus fair value. There are now 27,000 NTT DC REIT shares in equity picks with the increase.

AEM Holdings: Raise exposure by 700 shares @ SGD9.63

We raise exposure following stronger-than-expected 1H26 results. More importantly, the company raised its guidance to SGD630mn to SGD680mn (prev. SGD550mn to SGD600mn), supported by its fabless AI and HPC customer ramp up. While today’s increase is at a higher price than the 700 shares we pared last week at SGD8.93, our remaining AEM shares are well anchored at the SGD7.57 entry price on 31 July. There are now 4,500 AEM shares at an amalgamated price of SGD7.90.

Stocks to Watch

Grab Holdings Ltd

Sea vs Grab – bigger AI beneficiary in the near term?

• Sea Ltd (SE) appears more infrastructure-intensive than Grab Holdings (GRAB) leading to higher upfront costs, captured in its “Other Services”
• GRAB also started its AI Centre of Excellence 11-months before SE and operates over 1,000 internal AI models to drive hyper-local logistics, route mapping, and dynamic pricing at scale.
• More concrete AI benefits for GRAB (5-7% of its group adj EBITDA). We maintain BUY on GRAB (TP USD5.93) and SE (TP USD146) whereby GRAB could offer more upside potential after a sharp rise in Sea Ltd’s share price recently.

Food Empire Holdings

1H26 Results First Take: Continued focus on shareholder returns

• 1H26 earnings rose 14% y/y to USD35mn, forming 44% of our FY26F estimates, broadly in-line with our above consensus estimates
• Russia and Central Asia supported top-line growth, whereas bottom-line growth was largely supported by Central Asia
• Announced interim DPS at 4Scts, up from 3Scts, representing 60% increase after accounting for 1 for 5 bonus share issuance
• Maintain BUY and TP at SGD3.05

Hong Leong Asia Ltd

First Take: 1H26 Results – Powertrain roars, construction delivers

• Strong 1H26 earnings, with PATMI up 64.1% y/y to SGD91.9mn; ahead of our estimates and forming c.60% of our FY26 projections
• Powertrain Solutions remained the key earnings driver, benefiting from both volume and mix
• Building Materials momentum strengthened on Singapore's construction upcycle
• Maintain BUY with TP of SGD4.28 under review

NTT DC REIT

First Take: 1QFY26/27 Business Update – Leasing momentum sets up a stronger 2H

• 1QFY26/27 distributable income of USD22.6mn beat IPO projection by 10.6%; and forms more than 27% of our FY26/27 projections
• Portfolio occupancy improved 0.8ppt q/q to 95.9%, while committed occupancy reached 99.2%
• 1QFY26/27 rental reversion was a healthy +13.4%, led by the SG1 NTT Master Services Agreement renewal at +23%
• Reiterate BUY with TP of SGD1.30

UltraGreen.ai Limited

1H26 results first take: Structural growth remains intact, though a higher cost base weighs on earnings

• 1H26 NPAT before exceptional items rose 45% y/y to USD39.4mn, slightly below our expectations, while revenue increased 24% y/y to USD87.2mn broadly in line
• Volumes grew 11% y/y (Americas/RoW vial volumes rose 4%/25%) and ASP increased 18%
• FY26 guidance reinforces our constructive view on the structural growth trajectory, though a higher cost base is likely to keep margins constrained for now
• We currently have a BUY call with TP USD2.00; more updates to come after the briefing

Wilmar International Ltd

2Q26 rebounded q/q, but 2H26 catch-up remains key

• Wilmar posted 2Q26 core net profit of USD378m (+56.8% y/y, +43% q/q), below our and consensus estimates
• Earnings improved q/q, driven by the recovery of derivative losses incurred in 1Q26 and stronger profitability in the feed and industrial products division, led by robust soybean crushing margins
• Wilmar announced an interim dividend of Scts5/share, up from Scts4/share in 1H25, implying an interim1.3% yield
• Maintain HOLD, TP SGD3.60. Wilmar needs to deliver a stronger 2H26 to meet consensus expectations; otherwise, we see downside risk to share price performance

Singapore Telecommunications Ltd

First take - 1Q27 underlying profit beats consensus by 11%

• 1Q27 underlying net profit of SGD831mn (21% y/y, 24% q/q) was 11% ahead of consensus of SGD746mn due to higher than expected OpCo EBIT and Bharti’s contribution.
• OpCo EBIT of SGD462mn (+11% y/y, 48% q/q), was 8% ahead of SGD427mn consensus, mainly due to less than expected decline in Singtel Singapore and lower than expected corporate expenses. Optus, NCS were the key drivers along the expected lines.
• Maintain BUY with an unchanged TP of SGD5.46.

 Legend

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