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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Oversea-Chinese Banking Corp Ltd Non-II growth drives strong start to FY26
▪ 1Q26 earnings of S$1.97bn were in line with our estimates, at 25% of our FY26e forecast, with record total income of S$3.83bn and ROE of 13.0%. The standout was non-II at a record S$1.61bn (+23% YoY), led by WM fees of S$422mn (+34% YoY) and insurance income of S$409mn (+34% YoY).
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StarHub Limited Pursuing all pain, no gain strategy
▪ Results were below expectations. 1Q26 revenue/EBITDA were 22% and 20%, respectively, of our FY26e forecast. PATMI plunged 81% YoY to S$5.9mn in 1Q26. Weakness spread across all consumer segments, mobile, broadband and entertainment.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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Venture Corporation Limited Here comes the AI bump
▪ 1Q26 revenue/net profit were within expectations at 24%/22% of our FY26e forecast. 1Q is seasonally weaker. Revenue faced a 6.3 percentage-point drag from the weaker US dollar. AI-related infrastructure products drove 11% YoY revenue growth. However, consumer lifestyle and related categories declined by 12% YoY .
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Aoxin Q & M Dental (AOXIN SP) Scaling Up In China Via Partnership-Based Acquisitions
Highlights • Backed by Q & M Dental Group, Aoxin is embarking on active acquisitions to accelerate its earnings growth in China. • Aoxin’s 2025 earnings turnaround and strong net cash support two 2026 acquisitions that could lift earnings from Rmb7m in 2025 to Rmb40m in 2027. • We initiate coverage with a BUY with target price of S$0.36. Catalysts include EPS-accretive acquisitions and improved price discovery as earnings grow.
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| CGS INTERNATIONAL | LIM & TAN |
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Hong Leong Asia Constructing growth, powering AI
■ We see multiple drivers for HLA: multi-year Singapore construction upcycle, secular demand for data centres, higher China domestic engine sales/export. ■ Powertrain growth drivers include an increase in HHP/large/AIDC engine manufacturing capacity and higher exports volumes/domestic market share. ■ Accretive YTL acquisition offers exposure to stable public BTO HDB demand pipeline, diversifying its building material (BM) segment. ■ Reiterate Add. HLA is our sector pick for its 26% 2-yr (2025-27F) EPS CAGR (vs. building material peer average of 16%).
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BRC Asia Limited ($4.70, up 0.25) the leading steel reinforcement solutions provider in Singapore, announces its financial results for the six months ended 31 March 2026 (“1H FY2026”). Singapore’s construction sector continued its expansion in the first half of 2026, with construction output projected to grow 7% year-on-year (“y-o-y”) to between S$43 billion and S$46 billion for the full year. In line with the industry growth, the Group accelerated order book delivered a record half-year revenue of S$931.0 million, up 30% y-o-y. Gross profit rose 38% y-o-y to S$93.3 million while net profit attributable to shareholders increased by 24% y-o-y to S$52.0 million. Revenue came in at S$931.0 million in 1H FY2026. At BRC’s last traded price of $4.70, market cap is $1.3bln and its trades at 12.5x PE, 4% dividend yield, 2.5x book and based on consensus 1 year target price of $5.20, upside potential is 11%. We maintain an Accumulate rating on BRC Asia given its dominant market position in the steel market in Singapore and its ability to capitalize and leverage on the construction boom in the Singapore market. Despite its higher valuations, outlook is quite certain due to its robust order books. |
