SG Property Intelligence: STM 1H26 takeaways; ASEAN High-Conviction Picks

Research evidence excerpt

SG Property Intelligence: STM 1H26 takeaways; ASEAN High-Conviction Picks

J P M O R G A N Asia Pacific Equity Research

03 August 2026

SG Property Intelligence

STM 1H26 takeaways; ASEAN High-Conviction Picks

Seatrium: 1H26 takeaways – Margins improving, but investors still need to Singapore/ASEAN Property and

see contract conversion. Key takeaways from STM’s 1H26 results (link) briefing REITs

include: (1) margins continue to improve despite limited replenishment of the Terence M Khi AC

orderbook, (2) management remains confident Petrobras BOT economics are (65) 6882-1518

comparable to EPC contracts, (3) LNG opportunities are expanding, particularly terence.ml.khi@jpmorgan.com

FSRUs and FLNGs, (4) cost optimisation and divestments are supporting earnings Mervin Song, CFA AC

growth, (5) orderbook quality continues to improve, and (6) 2H26 R&U activity (65) 6882-7829

should strengthen. While operational execution remains strong, we believe the key mervin.song@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

investor debate remains unchanged: can STM replace its declining orderbook and J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

convert a larger share of the Petrobras, LNG and offshore wind pipeline into Morgan Broking (Hong Kong) Limited

awards? We continue to view orderbook replenishment, rather than margin

execution, as the key determinant of medium-term earnings and valuation. Link

(Source: J.P. Morgan)

ASEAN High-Conviction Picks: Best stock ideas in ASEAN – August 2026. In

July 2026, the two best-performing sector/country picks were: (1) Indonesia

(stock: ASII IJ); and (2) Philippines (stock: ICT PM); while the worst-performing

sector/country picks were: (1) Thailand (stock: HANA TB); and (2) Vietnam

(stock: VCB VN).