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CGS INTERNATIONAL |
UOB KAYHIAN |
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Seatrium Ltd Litigation noises
■ STM/Aibel are demanding €180m and c.€130m from each other over disputes on the DolWin5 HVDC Tennet contract. ■ The dispute arose from Aibel’s late design freeze, allocation of responsibilities, and cost/revenue sharing. ■ STM completed its direct scope for the platform and sailed it away in Oct 23. ■ Based on preliminary assessment, STM believes that its direct scope claims exposure is capped at €5m. ■ Reiterate Add with S$2.67 TP (1.3x FY26F P/BV); litigation may cap upside in the near term, with re-rating hinging on margin improvements.
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Strategy – Singapore Outlook Galloping Into A Bullish 2026 On The Back Of EQDP Measures
Highlights • The Singapore market outlook webinar on 15 Jan 26 garnered interest from over 200 retail investors. • Key questions include potential EQDP beneficiaries, small-mid-cap (SMID) stocks, property counters, banks and REITS. • Our large cap picks are DBS, GENS, KEP and SE. Our SMID-cap picks are FEH, VALUE, RSTON and CAO. Our top five S-REIT picks are CLAR, KREIT, LREIT, CAREIT, and NTTDCR.
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UOB KAYHIAN |
LIM & TAN |
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Renewable Energy Navigating Rising Costs Amid Elevated Orderbook
Highlights • 4Q25 results will remain robust on the back of elevated orderbook and healthy margins. Beyond that, we expect share price to trade sideways in 2Q26 given rising solar PV prices (11 cents/kwh vs 9 cents/kwh a year ago) and slowerthan-expected residential rooftop take up under the ATAP programme. In the longer run, positive regulatory outlook – under NeTR – will continue to drive sector performance. Maintain OVERWEIGHT. We prefer large cap Tenaga and Pekat, which is focused on driving a profitable business in solar and manufacturing of switchgear (benefiting from higher capex spent by Tenaga).
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Suntec REIT (S$1.42, unchanged) reports strong distributable income of $207.3 million for the period from 1 January to 31 December 2025 (“FY 25”), 14.6% higher than the year ended 31 December 2024 (“FY 24”). Distribution per unit (“DPU”) to unitholders was 7.035 cents or 13.6% higher year-on-year. Suntec REIT’s market cap stands at S$4.2bln and currently trades at 21x PE, 0.7x PB and has a yield of 6%. Consensus target price stands at $1.37, representing 4% downside from current share price. We currently maintain a HOLD recommendati on on Suntec REIT, as its yield provides a buffer against downside risk to the current share. |
| LIM & TAN | MAYBANK KIM ENG |
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SGX Mainboard-listed Aztech Global Ltd ($0.655, unchanged) is proud to announce that its wholly-owned Malaysia manufacturing facility, IOT Manufacturing Sdn. Bhd. (“IOTM”) has received its Certi fi cate of Registrati on under the U.S. Food and Drug Administrati on’s (“FDA”) 21 CFR Part 8071 Establishment Registrati on and Device Listi ng (“21CFR807”). At 65.5 cents, Aztech is capitalized at $505mln and trades at 14x forward PE, 1.9x book and 4-5% dividend yield. While we like Aztech’s plans to further penetrate into the MedTech space with their new manufacturing facility, especially in the USA market, we note that its valuati ons are fair and Bloomberg consensus target price is bandied about where its current share price is. We thus maintain a HOLD recommendati on on Aztech.
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Sanli Environmental (SANLI SP) Opportunity To Accumulate
Catalysts incoming – Maintain BUY Sanli raised gross proceeds of SGD10.01m from prominent institutional investors, mainly to support working capital needs amid its record SGD781.5m orderbook. This resulted in a new lower target price of SGD0.45 (from SGD0.50), based on 15.5x FY27E P/E to account for placement dilution. We maintain BUY as we remain confident in Sanli's ability to deliver record profits over the next few years. We also believe the recent liquidated damages claim will be resolved amicably, with limited downside risk.
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