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CGS INTERNATIONAL |
PHILLIP SECURITIES |
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SATS Ltd Flexing resilience amidst uncertainty
■ 4QFY3/26 PATMI of S$50.7m slightly ahead of our c.S$45m forecast; FY26 PATMI in line at 102.3%/98.9% of our/Bbg consensus FY26F estimates. ■ We raise our FY27F/28F EPS by 7.3%/2.0% to account for robust revenue expansion, driven predominantly by strong growth in gateway services. ■ Reiterate Add with a higher DCF-based (WACC: 11.2%) TP of S$4.68 as SATS remains well on track to deliver on its FY29F financial targets.
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LHN Limited Co-living franchise scaling faster
▪ 1H26 results were within expectations. Revenue/adj. PATMI were 43%/49% of our FY26e forecasts. Revenue declined 14% due to the absence of property development revenue. The interim dividend was unchanged at 1 cent. ▪ Coliwoo increased the number of rooms by 38% YoY to 3,568. Coliwoo Midtown (Middle Road) opened in March and added 212 rooms. It has already reached 55% occupancy since opening. There are another 1,021 rooms in the pipeline (+29%). Demand remains strong with an average occupancy of 97%.
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UOB KAYHIAN |
UOB KAYHIAN |
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SATS (SATS SP) FY26: Core Earnings Beat Expectations; Strong Fundamentals Despite Short-Term Volatilities
Highlights • SATS’ FY26 core net profit of S$301m (+15.6% yoy) beat our estimate by 3.5% thanks to a lower-than-projected effective tax rate. • SATS continues to gain market share in global air cargo handling, with its volume growth beating industry benchmarks for 10 consecutive quarters. • Industry data shows that global air cargo volume has restored growth in AprMay 26, after a temporary dip in Mar 26 amid the Middle East war. • SATS’ fundamentals remain strong, despite some near-term cost pressure. • Maintain BUY with an unchanged target price of S$4.75 based on 19.7x FY28F PE, pegged to SATS’ historical mean PE.
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Frasers Logistics & Commercial Trust (FLT SP) Scaling Up In Europe By Tapping On Sponsor Pipeline
Highlights • FLT has proposed to acquire four freehold logistics properties, two in Germany and two in the Netherlands, for €294.9m (S$441.5m). The Düsseldorf asset is located within one of Germany’s top five logistics markets and near Düsseldorf Airport. The Duisburg property is near Port Duisburg, one of the busiest inland ports. • The acquisition will be funded via external debt and is projected to be DPUaccretive by 1.7% on a pro forma basis for 1HFY26. • FLT’s resiliency is demonstrated by full occupancies for its logistics properties in Australia, Europe and the UK. Maintain BUY. Target price: S$1.33.
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| LIM & TAN | DBS RESEARCH |
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Valuetronics Holdings / Valuetronics ($1.01, down 1ct) announced its plan to return enhanced value to its shareholders as it reported its results for the full year ended 31 March 2026 (“FY2026”). The Board of Directors has recommended a final dividend of 14.0 Hong Kong cents per share 2 special dividend of 16.0 Hong Kong cents per share as part of the HK$300 million and a capital return programme . Together with the interim dividend and special dividend of total 8.0 Hong Kong cents that was paid in December 2025, it brings total dividend for FY2026 to 38.0 Hong Kong cents per share, represen ng an increase of 41% over 27.0 Hong Kong cents per share it paid in FY2025 and reflecting a dividend payout ratio of 132% in respect of FY2026. At its last traded price of $1.01, Valuetronics is capitalized at $414mln and trades at 13x forward PE with an attractive all in dividend yield of (interim div of HK 8 cents and final div of HK30 cents) of slightly over 6% yield. With its committed dividend and share buy back programme to return capital to shareholders and decent dividend yield we see opportunities to “Accumulate” the stock on any price weakness
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SATS : Steady As She Cargoes
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