|
UOB KAYHIAN |
UOB KAYHIAN |
|
Centurion Corp (CENT SP) From Dorms to Dollars: A Boring Business Delivers Compelling Returns
CENT remains a top sector pick, driven by material exposure to Singapore’s booming construction industry via its PBWA assets. With tailwinds from government megaprojects and robust rental growth, sustained earnings should be expected in our view. A potential REIT spin-off and the MAS’ S$5b equity market injection just around the corner reinforce our investment case. Maintain BUY. Raise target price to S$1.70.
|
Gloves – Malaysia Cyclical Volatility From Episodic Narratives
Amid geopolitical reshuffling, the US’ reciprocal tariffs, and intensifying China competitions, the Malaysian glove sector rode through a volatile 1H25. Despite the ytd steep share price correction reflecting mixed investor sentiments, we opine that riskreward remains attractive given the sector’s bargain forward valuations (-2SD below mean). 2H25 earnings will also see sequential improvement on better US replenishments. Maintain OVERWEIGHT.
|
|
CGS CIMB |
CGS CIMB |
|
Oil & Gas - Overall Iran’s response key to oil price direction
■ The oil price direction now depends on how Iran responds to the US attack on its nuclear facilities; maintain Overweight on the O&G sector. ■ Hibiscus and Dialog have direct upstream exposure; Dialog is our top pick as it has a lower risk profile and a growing tank terminal portfolio.
|
Oil & Gas - Overall Iran tail risks closer to reality
■ Iran’s plan for a Strait of Hormuz blockade has led to increased tail risks of oil supply disruption, but the impact on oil prices has been muted so far. ■ In light of heightened near-term geopolitical risks, our segmental pecking order is upstream E&P and refinery. Chemical is our least favourite segment.
|
| LIM & TAN | LIM & TAN |
|
Cosmosteel’s ($0.23, up 0.01) joint offerors have raised their offer price from 20 cents to 25 cents and said that they do not intend to raise the offer further, making their 25 cents offer price a FINAL one. Cosmosteel’s Independent Financial Advisers (IFA) had concluded that the fair value range for the company’s stock price was between 22-28 cents, making the FINAL offer price about the middle of that range which will make it both “Fair” and “Reasonable” and thus we now advise investors to “ACCEPT” the 25 cents FINAL offer price. The only condition for the offer to turn “unconditional” is that the offeror’s stake be raised from the current 32% to above the 50% threshold. We believe the offer has a good chance of turning unconditional with the 25 cents offer price being in the middle of the IFA fair value range and only slightly discounted to the company’s historical NAV of 29 cents/share.
|
Netlink Trust’s market cap stands at S$3.4bln and currently trades at 35.9x forward PE and 1.4x PB, with a dividend yield of 6.1%. Consensus target price stands at S$0.98, representing 11.4% upside from current share price. Although valuations are rather fair, Netlink Trust continues to pay higher DPU as a result of their high fixed debt rates and strong defensive business. We thus continue to recommend a HOLD on Netlink Trust for it’s defensive and decent dividend yield in light of a more volatile period ahead. |
