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CGS INTERNATIONAL |
PHILLIP SECURITIES |
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Seatrium Ltd Order wins the key catalyst
■ We keep our Add call on STM with lower TP of S$2.67 (1.3x FY26F P/BV, or 10% discount to 10-year average P/BV). Sizeable order wins a key catalyst. ■ STM still targets to complete Maersk’s WTIV for 30 Jan 2026 delivery. US offshore wind projects make up less than 1% of its S$16.6bn order book. ■ STM remains hopeful of its S$30bn order pipeline and we expect Tiber’s FPU contract (more than S$1bn) is key catalyst in the near term.
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Prime US REIT Recovery on the horizon
▪ 3Q25/9M25 distributable income declined 26%/28% YoY, in line with expectations at 21%/76% of our FY25e forecast. The weaker 3Q25 performance reflected a lower portfolio occupancy of 80.7% (3Q24: 83%) and higher finance costs following the Aug-24 loan refinancing.
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PHILLIP SECURITIES |
CGS INTERNATIONAL |
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ST Engineering Ltd Non-cash impairment
▪ 9M25 revenue was within expectations at 71% of our FY25e forecast. 3Q25 revenue grew 13% YoY to S$3.14bn, led by a 22% jump in commercial aerospace revenue to S$1.28bn. New orders surged 126% YoY to S$4.9bn (3Q24: S$2.2bn). A special dividend of 5 cents was announced together with an interim dividend of 4 cents. Final dividend of 6 cents will also be proposed.
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AEM Holdings Ltd Market looking past 3Q25 disappointment
■ 3Q25 revenue grew 31.1% yoy to S$97.3m but declined 6.7% qoq. However, 3Q25 net profit disappointed at S$0.9m (1.0% net margin). ■ 9M25 revenue grew 16% yoy to S$287.5m, better than our expectations and slightly below Bloomberg consensus’. ■ 9M25 net profit (S$4.0m) was below expectations at 22%/30% of our/Bloomberg consensus’ full-year forecasts.
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| CGS INTERNATIONAL | CGS INTERNATIONAL |
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Marco Polo Marine Sizeable newbuild order in the bag
■ MPM won its largest newbuild contract worth S$198m for an oceanographic research vessel from a research organisation in Taiwan. ■ We think construction could begin around late-2026F, with the bulk of the work to be completed by end-2029F. ■ Assuming progressive revenue recognition and 10% gross margin, we estimate c.S$3m uplift to FY27F net profit. ■ Reiterate Add with a higher TP of S$0.14. FY9/25F results would be released around 28-29 Nov, with an analyst briefing on 8 Dec.
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Venture Corporation Targeting a better FY26F
■ 9M25 revenue was below our/Bloomberg consensus’ expectations due to weakness in its Lifestyle Consumer technology domain. ■ 9M25 net profit was in line with our FY25F expectation but below Bloomberg consensus’. ■ Venture’s FY26F earnings outlook recovery is priced in for now, in our view, as the strength of the recovery is skewed towards 2H26F. ■ Downgrade to Hold, supported by 5.0% dividend yields over FY26-27F, as we await stronger earnings momentum to drive a re-rating in FY27F.
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