Key Research Trends For SG Market This Week

 Companies Receiving the Most Research Coverage

• Keppel DC REIT received the most coverage with four reports (CGS, Phillip, Maybank, UOB Kay Hian), all positive, reflecting strong analyst interest following its ¥168bn Tokyo hyperscale data centre acquisition. TPs range from S$2.46 (Phillip) to S$2.99 (UOB).
• ISOTeam received three reports (CGS, RHB, Maybank) with notably divergent views — CGS (Add, S$0.11), Maybank (Buy, S$0.09), and RHB (Neutral, S$0.064), reflecting debate over the pace of revenue recognition and drone commercialisation timing.
• Lum Chang Creations also received three reports (UOB, RHB, CGS), all positive, with TPs ranging from S$0.46 to S$0.64, driven by strong margin expansion and Malaysia expansion potential.
• IHH Healthcare received two reports (RHB and CGS), both positive, with RHB upgrading to Buy and CGS reiterating Add, as Singapore operations show signs of bottoming.
• Geo Energy Resources received two reports (Phillip and KGI), both positive, centred on the completion of MBJ infrastructure and impending production ramp-up.

Notable Target Price Changes

• Upgrades: Lincotrade (KGI: S$0.37 → S$0.51, +38%), Ever Glory (Phillip: S$1.05 → S$1.20, +14%), Q&M Dental (CGS: S$0.68 → S$0.76, +12%), IHH (RHB: S$2.93 → S$3.00), Tiong Woon (CGS: S$1.29 → S$1.33).
• Downgrades: Kin Global (KGI: S$0.28 → S$0.14, -50%), Oiltek (Phillip: S$2.72 → S$2.00, -26%), Geo Energy (KGI: S$1.27 → S$1.15, -9%), ISOTeam (RHB: S$0.087 → S$0.064, -26%; Maybank: S$0.12 → S$0.09, -25%), CSE Global (KGI: S$1.79 → S$1.70).

Changes in Broker Sentiment

• Upgrades in rating: IHH (RHB: Neutral → Buy), Thomson Medical (Phillip: Accumulate → Buy), Tiong Woon (CGS: implied upgrade with TP increase), Q&M Dental (CGS: Add, TP raised).
• Downgrades in rating: Kin Global (KGI: Outperform → Neutral) was the most notable downgrade, driven by a 93% collapse in D&B revenue.

Common Investment Themes and Concerns

1. Data Centres as a dominant theme: Keppel DC REIT's Tokyo acquisition, IMDA's DC-CFA2 allocation, and Keppel Ltd's digital infrastructure ecosystem all highlight strong analyst conviction in the data centre growth story across Asia-Pacific.
2. Singapore construction and infrastructure: Multiple construction-related companies (Ever Glory, Lum Chang Creations, Lincotrade, ISOTeam, Tiong Woon) benefit from Singapore's robust construction pipeline (BCA: S$47-53bn in 2026). Order books are generally strong.
3. Margin pressure vs. expansion: A divergence is evident — some companies (Lum Chang, Tiong Woon, ASL Marine) delivered significant margin expansion, while others (CSE Global, ISOTeam, Oiltek) faced margin compression from input costs, project mix, or execution challenges.
4. Geopolitical and macro headwinds: The Iran conflict elevated diesel and raw material costs (impacting ISOTeam, others), while rising US bond yields and a potentially hawkish Fed weigh on REITs and rate-sensitive sectors.
5. S-REITs as laggards with value: Multiple strategy reports highlight S-REITs as the major lagging sector (-3.8% in August vs. STI +2.3%), presenting an opportunity given firm asset valuations, record commercial property transactions, and low domestic interest rates.