Summary
Skylink Holdings Limited (“Skylink” or “the Group”) is a newly listed commercial vehicle leasing and engineering solutions provider, formed through the reverse takeover (“RTO") of Sincap Group in September 2025. With just 8 years of operational history under its subsidiary Skylink APAC, the Group has grown into one of Singapore’s largest commercial vehicle leasing platforms. Its integrated business model spans long-term commercial vehicle leasing and fleet management (“SKVR”), vehicle credit and hirepurchase financing (“SKCR”), and engineering services including MRO, refurbishment, and bodywork solutions (“SKER”). With expanding fleet capacity, disciplined asset management, and scalable engineering infrastructure, Skylink is well-positioned for multi-year profitable growth. We believe Skylink presents an attractive investment opportunity in Singapore’s underserved commercial fleet services space, offering investors: 1) Resilient Leasing Cash Flows: Skylink delivers recurring lease income supported by high fleet utilization and disciplined asset management that sustain strong margins and cash flow visibility. 2) Scalable, Capital-Efficient Engineering Growth: Recent contract wins from SBS Transit and F&N Foods, alongside the expansion of SKER’s engineering footprint to 37,700 sq ft, including the acquisition of a specialist bodywork business, position the segment as a scalable contributor to Group revenue without significant incremental overhead. 3) Integrated Vehicle Credit Financing as a Profit Accelerator: SKCR provides high margin financing linked to fleet leases, enhancing customer retention and contributing steady earnings with low credit losses under conservative provisioning. 4) Multiple Upside Catalysts on the Horizon: Skylink’s growth outlook is supported by several potential catalysts, including further fleet expansion, commercial EV adoption, and new engineering or bodywork contract wins. These drivers offer meaningful optionality over the medium term. We initiate coverage on Skylink with a BUY rating with TP of S$0.44 based on forward EPS of S$0.0398 against the average P/E of 11.1x of its peers, representing a 52.2% upside from current levels. FY23 8.3 3.7 0.7 0.4 (33.8)
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