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CGS INTERNATIONAL |
UOB KAYHIAN |
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Yangzijiang Shipbuilding Strategic investment in a key customer
■ YZJSB plans to acquire a 10% stake in the parent company of its customer Seaspan for US$825.7m, fully funded through internal cash. ■ The transaction is c.6% accretive based on YZJSB’s FY25 EPS; implied valuation of c.11x trailing P/E (1.8x P/BV) appears reasonable to us. ■ Following the investment, we expect YZJSB to remain in a strong net cash position, which suggests limited risk to its dividend policy
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Huationg Global (HUAGL SP) 2025: Record-High Performance; Re-Rating In Sight
Highlights • Huationg’s 2025 earnings of S$20m (+21% yoy) exceeded our expectations by 10%, driven by a 67% surge in civil engineering revenue. • A robust S$535m orderbook underpins strong earnings momentum. • Maintain BUY with a higher target price of S$1.23. Huationg trades at just 5x ex-cash 2026F PE, a deep 60% discount to peers, with a potential Mainboard transfer as a re-rating catalyst.
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UOB KAYHIAN |
DBS GROUP RESEARCH |
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Plantation Inventory Continues Moderating
Highlights • MPOB’s Feb 26 data showed palm oil inventory declining to 1.28m tonnes driven by lower production despite weaker exports. • Malaysia’s producers are expected to benefit from March’s hike in Indonesia’s export levy, with exports anticipated to pick up strongly in the coming months. • Maintain MARKET WEIGHT. Sector picks: Hap Seng Plantations (BUY, Target: RM2.45) and KLK (BUY, Target: RM22.45).
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FWD Group Holdings Ltd Positive inflection point emerges
• VNB and CSM expected to grow 18% CAGR in FY26-27F, among the fastest in the sector • Accelerating growth ahead in operating variance, IFRS profit, and NFSG, backed by growing scale, proactive capital management, and expense discipline • Thailand recovery, together with strong Hong Kong and Japan demand, to support robust FYP growth • Initiate BUY with TP of HKD50; undemanding valuation at 0.6x P/(ANW+CSM) vs Pan-Asia peers at 1.1x
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| DBS RESEARCH | LIM & TAN |
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Yangzijiang Shipbuilding Acquiring 10% of Poseidon (Seaspan’s parent) for USD825.7mn cash (at decent valuation of 1.8x FY25 P/B, 11.2x P/E), funded internally. Strategic stake in world largest containership lessor with 190 ‑vessel fleet and 70‑vessel orderbook, deepening YZJ–Seaspan alignment. Adds recurring earnings (~Rmb300mn incremental PAT or ~3% group profit) and enhances visibility for YZJ’s containership pipeline. Reiterate BUY and TP SGD4.55; attractive 10% growth and 5% dividend yield
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Reclaims Global Limited (S$0.47, up 1ct) wishes to inform shareholders of the Company that, based on a preliminary review of the Group’s unaudited consolidated financial results for the financial year ended 31 January 2026 (“FY2026”), the Group expects to report a significant improvement in net profit for FY2026, as compared to the financial year ended 31 January 2025. Reclaims Global’s market cap stands at S$71mln and trades at forward P/E of 11.1x, P/B of 1.6x with a dividend yield of 4.5%. Our forecasted FY26F profits of S$6.4mln represents a 14% yoy increase (FY25: S$5.6mln), which we believe will likely be exceeded given Reclaims’ guidance of “significant improvement in net profit”. This is driven by faster than expected execution of several quick turnaround and good margined projects and also economies of scale underpinning profit margin expansion. The upcoming EGM this week 12 March’26 to approve the 1 for 1 bonus issue will help to improve the trading liquidity of the stock while also entitling shareholders who hold onto the bonus shares to higher dividends as the bonus shares will also likely be entitled to the final dividend payout around May’26. We maintain an “Accumuate” rating on Reclaims Global with a target price of S$0.60 |
