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PHILLIP SECURITIES |
CGS INTERNATIONAL |
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SIA Engineering Co. Ltd Revving up capacity
• 1H26 results were within expectations. Revenue and adj. PATMI were 52% and 50% of our FY26e forecast, respectively. Operating profit spiked 282.4% YoY to S$13m. Share of profits of associates and JV increased 21.7% YoY to S$71.3m, while net profit jumped 21.1% YoY to S$83.3m (excl. one-offs). Interim dividends of 2.5 cents per share is up 25% YoY.
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Riverstone Holdings US$/RM rate remains biggest concern
■ 9M25 net profit of RM154m (-29.1% yoy) was below expectations at 70% of our FY25F forecast and 65% of Bloomberg consensus’. ■ In 3Q25, Riverstone benefited from lower raw material costs but its performance was held back by the weaker US$ versus RM. ■ Reiterate Add given its attractive 5.4-7.4% prospective FY25-27F dividend yields; TP unchanged at S$0.91.
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CGS INTERNATIONAL |
UOB KAYHIAN |
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CSE Global Solidifying partnership with Amazon
■ CSE to issue c.63m warrants to Amazon’s subsidiary, raising S$48.3m for working capital. ■ Vesting tied to US$1.5bn in payments over five years could drive multi-year revenue increase and expand strategic opportunities, in our view. ■ Reiterate Add with a higher TP of S$1.15 on greater order win assumptions.
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SEA (SE US) 3Q25: Minor Reinvestment To Unlock Bigger Potential
Highlights • 3Q25 results were below expectations as Shopee’s higher S&M spend compressed margins despite top-line growth across all segments. • Monee’s rapid scaling and Garena’s rebound offset e-commerce margin dip. • We believe minor reinvestments in 3Q25 could unlock stronger future growth. Maintain BUY with a 2% lower target price of US$200.18 (from US$204.85).
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Sea Ltd (SE US) e-commerce margin expansion eases; HOLD
3Q25 results: overall firm, but Shopee margins soften SE’s 3Q25 adjusted EBITDA grew 68% YoY/5% QoQ, beating our and Street expectations by 4–5%. The beat was mainly driven by the gaming business, where adjusted EBITDA rose 48% YoY/27% QoQ - 15–22% ahead of estimates - supported by highly impactful IP collaborations. However, Shopee adjusted EBITDA of USD186m marked a second straight quarterly decline and missed our and Street expectations by 15–16%, despite solid GMV growth of 28% YoY/8% QoQ. Factoring in 3Q25 delivery, we raise SE’s adjusted EBITDA estimates by 2–3% for FY25–27 but trim TP by 9% to USD156 on a lower Shopee valuation in our SoTP. While the company is opportunistically prioritizing growth and building competitive moats, it may slow near-term monetization gains.
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CSE Global (CSE SP) Riding with Amazon on its data centre expansion
Maintain BUY with a higher TP of SGD1.20 CSE granted 62.97m warrants to Amazon (AMZN:US), which will allow them to acquire 1-1 share at SGD0.767/share. The amount of warrants is conditional upon Amazon giving orders of up to USD1.5b to CSE over the next 5 years, of which they will own 8% of CSE. We believe this is significant as CSE is the first-ever SGX company that Amazon took a stake in and validates CSE as one of their key system integrators for their data centres. A USD300m/year run-rate from Amazon is significantly higher than its existing USD40m/year. As a result, we raise our FY26/27E PATMI by 9.5% and 17.6% and raise our TP to SGD1.20 from SGD0.84, based on a higher 20x 26E P/E. Maintain BUY.
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