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CGS CIMB |
UOB KAYHIAN |
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ISOTeam Ltd Lumpy 2H but outlook remains positive
■ FY6/25 PATMI of S$5.1m (-21% yoy) was a miss at 77% of our FY25F as delays/timing of revenue recognition resulted in an abnormally weaker 2H. ■ 2H saw slower-than-expected order wins but our outlook remains positive. ■ Reiterate Add on ISO’s recurring business model and profit/margin recovery
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REITs – Singapore Data Centre REITs – Size Matters!
The data centre industry is gravitating towards building of hyperscale and even gigawatts data centres. Smaller data centres, particularly those serving enterprise tenants, could become irrelevant. Maintain OVERWEIGHT. BUY KDCREIT (Target: S$2.69) and DCREIT (Target: US$0.88) as hyperscale tenants accounted for sizeable 67% and 75% of rental income respectively. Downgrade MINT to HOLD (Target: S$2.30) as its enterprise tenants are susceptible to non-renewal.
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MAYBANK KIM ENG |
LIM & TAN |
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Singapore Telecommunications (ST SP) Investor Day: key takeaways
Key businesses in good shape, dividend clarity We emerged from Singtel’s Investor Day with a constructive stance, noting that most of its business units either remain on solid footing or showing clear signs of improvement. Management highlighted AI as a key catalyst, positioning Singtel to benefit not only from rising infrastructure demand— particularly in data centres/GPUaaS—but also through efficiency gains by embedding AI across its operations. Importantly, the group reaffirmed its capital-recycling programme (targeting SGD9b) remains on track. These developments underpin management’s confidence in sustaining valuerealisation dividends comfortably over the medium term, which we believe could extend through FY30. Meanwhile, the SGD2b share buyback programme is yet to commence, offering further upside potential. Against this backdrop, we reiterate BUY on Singtel.
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Tiong Woon / TWC ($0.775, down 1.5 cents) recorded revenue of $163.5 million for the twelve months ended 30 June 2025 (“FY2025”), a 14% improvement from the corresponding period a year ago. This was mainly attributable to the increase in contributions from Heavy Lift and Haulage segment. GP was $61.4 million in FY2025, an increase of $2.5 million or 4% from $59.0 million in FY2024 and GP margin was lower at 37.6%. The lower GP margin was attributed to sales mix of projects undertaken during the year. The Group’s net profit attributable to equity holders increased by $1.0 million or 6% from $18.2 million in FY2024 to $19.2 million in FY2025. TWC’s market cap stands at S$180mln and currently trades at 8.2x forward PE and 0.6x PB, with a dividend yield of 2.2%. Despite the $2.2mln forex loss, TWC’s core profits came in flattish, suggesting improvement in their core business which is likely attributed to the strong construction macro environment. TWC has also continued to increase their dividends (1.75cts final normal dividend vs 0.6 Sct normal, 0.9 Sct special last year) which aligns with our strong construction thesis and we continue to maintain a BUY recommendation on TWC. |
| LIM & TAN | DBS GROUP RESEARCH |
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Civmec Ltd (S$0.945, up 0.5 cents) has announced its financial results for the full year ended 30 June 2025 (FY25). For the twelve months ended 30 June 2025 (‘FY2025’) revenue decreased 21.6% to A$810.6 million, down from A$1.0 billion for the twelve months ended 30 June 2024 (‘FY2024’) mainly due to reduced activity levels following the completion of major contracts. Gross profit for FY2025 decreased 21.9% to A$92.9 million, down from A$119.0 million in FY2024, reflecting the decline in revenue. However, gross profit margins remained steady at 11.5%. Capitalized at S$480mln, Civmec trades at 13.5x P/E and 1.1x P/B with a dividend yield of 5.3%. While FY25 was a relatively weak year due to reduced activity levels, the company has maintained dividends with total full year dividends of 6 A cts, a 72% payout ratio. Civmec has increased its order book to A$1.25bln, doubling from Jan’25 and providing revenue visibility for more than a year. The acquisition of Luerssen Australia will accelerate its sovereign capability in defence manufacturing for the Australian government. Notwithstanding 1HFY26 remaining weak, the company sees activity levels recovering in 2HFY26, supported by a robust pipeline of contracts. We maintain our “Accumulate on Weakness” recommendation as we believe that the stock is in a bottoming process.
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Sheng Siong Group Ltd
Investment Overview Achieving industry-leading margins through a no-frills, disciplined investment approach. Sheng Siong operates with one of the leanest cost structures among grocery retailers globally. Unlike peers, the company has made minimal investments in marketing, e-commerce platforms, and membership programmes. Despite this underinvestment, it continues to remain highly relevant to domestic consumers due to its established brand, strong focus on fresh produce (less exposed to e-commerce disruption or cross-border purchases in JB), and commitment to offering the best value.
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