• No financials were provided for 3Q26. Retail rental reversion for YTD renewed leases increased 12.2%. Portfolio occupancy stood at 95.3% (+0.4 ppts QoQ). Milan office Buildings 1 and 2 had CPI-linked rental uplift of 1.5% from Apr26. We expect retail rental reversion to remain in the low-double-digit range into 4Q26.
• PLQ mall enhancement works on c. 16,000 sqft across levels 1 and 2 have been progressing, with level 1 space already pre-leased. Level 2 leasing is in progress. Income contribution from the reconfigured spaces is expected to begin in 2H27, with peak downtime anticipated in Oct27/Nov27. The PLQ Mall acquisition is expected to deliver 2% DPU accretion.
• We maintain our BUY recommendation. There are no changes to our forecast. LREIT is trading at a FY26e P/NAV of 0.70x, with a dividend yield of c. 5.86%. We see the strengthening capital structure and PLQ Mall reconfiguration as key drivers, partially offset by the drag from Milan Building 3.

• 2H26/FY26 PATMI declined 53.6%/57.4% YoY to S$945mn/S$1,184mn, forming 97%/78% of our FY26e estimates. Associate losses weighed on earnings, with full-year Air India losses at S$828.5mn.
• 2H26 operating profit surged 72% YoY to S$1,572mn, due to i) stronger passenger yield (up 3.8% YoY) and larger traffic growth (up 4.7% YoY), and ii) a S$178mn YoY decline in net fuel cost, as fuel hedging led to a S$218mn hedging gain in 2H26.
• We maintain NEUTRAL with lower TP of S$6.43 (prev: S$7.00). The P/B multiple has been reduced from 1.3x to 1.1x to reflect heightened sector risk following the US-Iran conflict, and fuel costs for FY27e have been increased to account for cheaper hedges rolling off. SIA's strong balance sheet and its special dividend policy through FY28 provide downside support.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
Continue Reading