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CGS CIMB |
UOB KAYHIAN |
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Genting Singapore Time to look past likely downtime in 2Q25F
■ We visited RWS on 2 Jul 25 to conduct a ground check on new attractions that GENS had targeted to open for 3Q25F. ■ While we observed USS had a fair number of visitors, more than 50% of tenants in its newly opened retail space, Weave, have not begun operations. ■ We believe subsequent opening of attractions in 3Q25F (i.e. Singapore Oceanarium and The Laurus Hotel) should drive earnings growth for 2H25F. ■ Reiterate Add, with an unchanged TP of S$1.05 (8x FY26F EV/EBITDA).
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Construction – Singapore Concrete Gains Ahead
Singapore’s construction sector is gaining traction, underpinned by strong infrastructure demand and rising RMC volumes, with industry demand projected to reach up to 14.5m m³ in 2025. Key projects like Changi T5 and Cross Island MRT support a healthy pipeline, while stable RMC prices in 1H25 improved the margin outlook. These trends enhance earnings visibility across the value chain. Maintain OVERWEIGHT on the sector, with Hong Leong Asia and Pan-United among our preferred picks.
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UOB KAYHIAN |
LIM & TAN |
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Horizon Robotics (9660 HK) Unleashing The Future Of Autonomous Driving
Horizon is a leading ADAS/AD solutions provider with unique software-hardware integration in China. We expect Horizon’s ADAS solutions to capture a 54% market share among Chinese OEMs by 2027 as it capitalises on the localisation of auto chips and penetrates more mass-market EVs. We forecast a three-year sales CAGR of 57.5% in 2025-27 and expect Horizon to achieve breakeven in 2028. Initiate coverage with BUY and a target price of HK$7.45, based on 10.1x 2027 EV/Sales.
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Food Empire Holdings Limited / FEH ($1.90, up 0.04) has announced plans to invest US$37.0 million in the expansion of its spray-dried soluble coffee manufacturing facility in Andhra Pradesh, India, to support its fast-growing branded consumer business. Work on the expansion is scheduled to commence in the 4th quarter of 2025 and be completed by end 2027. It is expected to increase the facility’s capacity by about 60%. We see this as a positive and upbeat move by the management of FEH as its India manufacturing plant is currently operating at full capacity and with strong demand outlook conditions ahead and good order visibility from its key customers the 60% capacity increase would not only help to satisfy the strong demand from both existing and new customers, it would also allow them to reduce exposures to both the Russian and Ukraine markets that have been FEH’s historical strongholds. We thus maintain an Accumulate rating on FEH given its still robust growth ahead. |
| LIM & TAN | MAYBANK KIM ENG |
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Capitalized at S$145mln, Soilbuild Construction trades at 4.1x forward P/E and 1.7x P/B, with a dividend yield of 3.4% (based on 2 cts normal and 1 ct special). Order book of S$1.21 billion in pipeline projects backed by a resilient order-winning momentum suggests improved revenue visibility for at least the next few years. As a builder of residential and business space properties, Soilbuild stands to benefit from an increase in construction demand across Singapore. Consensus TP of $0.97 represents a 12% potential upside. We have an “Accumulate” recommendation in view of its positive outlook.
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Malaysia Banking OPR cut by 25bps to 2.75%
NEUTRAL maintained on sector That BNM has cut the OPR by 25bps is within our expectations and this has been factored into our forecasts. Our Economics Team expects no further rate cuts this year and our earnings are unchanged. We remain NEUTRAL on the sector and our BUYs are on PBK, AMMB, HLBK and HLFG, in that order of preference.
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