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CGS CIMB |
UOB KAYHIAN |
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SATS Ltd Gateway services providing the airlift
■ 1QFY3/26 PATMI of S$70.9m was in line with our expected S$65m-70m, forming 27.0%/27.1% of our/Bloomberg consensus FY26F estimates. ■ SATS cargo volume handled grew 10.4% yoy in 1QFY26, outpacing global cargo industry growth for 7 consecutive quarters, according to IATA data. ■ Consolidation of its central kitchen operations in China also led to margins improvement for its food solutions business in 1QFY26. ■ Reiterate Add with a higher DCF-based (WACC: 12.2%) TP of S$3.83.
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Automobile – China Weekly: YOY PV Sales Growth Turns Positive On Price Cuts
China’s yoy PV and PEV sales growth returned to positive territory (at +6.2%/+13.5%) in the 33rd week of 2025, as OEMs cut prices again. Geely’s insurance registrations spiked 21% wow during the week, beating our expectation, driven by the blockbuster new model Galaxy A7. However, BYD, Tesla China and Li Auto still posted a yoy sales decline during the week, albeit a wow rebound. Maintain MARKET WEIGHT. Top BUYs: CATL, Geely and Tuopu
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UOB KAYHIAN |
LIM & TAN |
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AIA Group (1299 HK) 1H25: In-line VONB Growth; Strong OPAT Beat
AIA’s 1H25 VONB growth was in line with our expectation, mainly driven by solid growth in Thailand, Hong Kong and Singapore. Although AIA China still reported negative VONB growth due to assumption changes, margin expansion and strong growth targets in new regions will restore investor confidence in its growth story. In addition, OPAT growth was a solid beat, supported by higher CSM release and improved operating variances. Maintain BUY. Target price: HK$91.00.
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Marco Polo Marine / MPM ($0.069, up 0.3 cents) announced weaker 3QFY25 results with revenue and gross profit declining 9% and 4% YoY respectively. Despite weaker results, we think that the worst is over for MPM. Moving forward, we look forward to FY26 with full contribution from their maiden CSOV charters, improving charter rates and utilization across their fleet, increased ship repairs, more ship repair contract wins and even a potential 2nd CSOV construction in the pipeline. We thus maintain a BUY recommendation on MPM with a revised target price of S$0.082 pegged to 10x FY26x PE, in line with peers. |
| LIM & TAN | |
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Conclusions and Recommendations: Weakness in Singpost’s core business should not be a surprise to the market given that this weakness was already evident last year and Singpost’s management had also flagged this in analysts briefings. This weakness reflects the tough macro environment brought about by President Trump’s on-off and flip-flop in USA tariff decisions. Excess capacity and intense competitive pressures coupled with continued structural declines in postal business demand as well as rising cost pressures would continue to see margin pressures. Our investment thesis for Singpost continues to look past its weak core business fundamentals and on management’s asset monetization strategy to return excess capital to shareholders, similar to what its parent has been under-going. While not entirely comparable to the game plan and play-book of SPH and SMRT, we see a similar trajectory for Singpost’s end-game that its postal business would be too important for our government to forgo and that Singpost’s crown jewel Singpost Centre when finally monetized would reap shareholders a bonanza, similar to the “big” one-time special dividend that Singpost dished out (9 cents/share) when it sold its Australian business. At 50 cents (or $1.1bln market cap, 0.8x p/b) versus our RNAV estimate of 70-75 cents and consensus target price of 70-75 cents, we maintain an “Accumulate” rating on Singpost.
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