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Yangzijiang Shipbuilding
Slower order wins; valuations undemanding
■ YZJSB cited stiffer competition from second-tier yards with yard availability and lower pricing in the recent months’ order wins.
■ YTD order wins at US$2.17bn. We expect some small vessels contracts before end-25, but lower our order forecast for 2025F to US$3bn.
■ ASP for 10K TEU containerships declined by c.10% yoy in 2025 and YZJSB expects c.10% further decline in 2026F; the yard remains selective in bidding.
■ The positive is steel costs remain low, likely to keep margins stable in FY26F (1H25: 35%). We raise FY25-26F shipbuilding GM to 35% (from 32%).
■ Reiterate Add and raise TP to S$4.51, on 10x P/E, rolled forward to CY27F. The stock trades at a 50% discount to peers. Order wins are key catalysts.
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Frencken Group Ltd
- Stronger growth on the back half of 2026
- 3Q25 revenue/PATMI were within expectations, at 73%/72% of our FY25e forecasts. 3Q25 revenue/PATMI growth of 7%/8% YoY was driven by semiconductor’s 8% YoY revenue growth, due to higher sales in its Asia operations. Medical and industrial automation revenue also increased by 6%/52% YoY, driven by higher demand for patient tables and data storage solutions, respectively.
- Management guided semiconductor revenue growth to slow in 4Q25e, because of a recalibration in orders from its Netherlands-based customer. We believe Frencken’s semiconductor segment will face temporary demand softness in 2H25e and 1H26e, from longer EUV lead times and pull in of demand for China in 2024.
Nevertheless, both customers indicated that 2H26e will be a stronger half, driven by an expected high-NA EUV order ramp and acceleration in wafer fabrication equipment (WFE) spending.
- We maintain BUY with a higher TP of S$1.87 (prev. S$1.76). We lower our FY25e revenue/PATMI by 4%/5% respectively to reflect a softer outlook for Frencken’s semiconductor segment. Our target price is raised to S$1.87 (prev. S$1.76) as we roll over our valuations to FY26e, with stronger growth expected in 2H26e. Frencken is trading at an attractive valuation of 16x FY25e, compared to its peers’ average of 34x P/E.
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Mermaid Maritime
Earnings visibility hinges on new orders
■ We think MMT’s strong 3Q25 net profit was largely driven by revenue recognition as it reaches the tail-end of a key decommissioning project.
■ Orderbook fell 7% qoq to US$642m at end-3Q25 as subsea IRM and cablelay order wins partially offset decommissioning order execution.
■ We maintain Add with a lower TP due to slower-than-expected order win momentum so far in 2025. Our new TP is based on 0.9x 2026F P/BV.
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XIAOMI CORP
<Earnings First Take> 3Q25 adj. earnings +81% y/y on EV/IoT strength; premiumisation offsets memory‑cost headwinds
- 3Q25 revenue +22.3% y/y; adj. net profit +81% y/y (+9.8% above consensus), aided by a government grant of RMB1.7bn and a slightly higher‑than‑expected group GM of 22.9%.
- EV/AI segment gross margin improved by 8.4 ppts y/y and turned operating profitable for the first time (RMB700mn), offsetting smartphone softness
- Higher memory cost to add pressure to handset GM near term, but to offset by premiumisation in China and cost savings from in‑housing and digital factories; EV deliveries on track; maintain BUY
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StarHub (STH SP)
3Q25: weak but competitive green shoots emerging
Weak 3Q25, lower earnings forecasts 4-13% and TP 3Q25 core earnings declined 29% YoY, with 9M25 trending at 62% of Street full-year forecasts. The decline was mainly due to more intense competition, leading to consumer business revenue falling 8% YoY in 3Q25. This was partially mitigated by improvement in enterprise services, although headline enterprise revenue was a bit soft owing to it moving away from low-margin managed services projects.
Given the relatively fixed-cost nature of telco operations — particularly connectivity services — the flow-through impact to EBITDA was high (EBITDA down 9% YoY). Following a lower-than-expected 3Q25, we lower our earnings forecasts by 4-13% and TP by -4% to SGD1.30.
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