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PHILLIP SECURITIES |
PHILLIP SECURITIES |
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Singapore Banking Monthly Interest rates finally stabilise
▪ Singapore interest rates are showing signs of stabilisation with May’s 3M-SORA up 2bps MoM to 1.07%, the first MoM increase in 2 years, and fell by 124bps YoY, the smallest YoY decline in 13 months. Singapore YoY loan growth the highest since post-COVID (Apr26: +7.9%). Banks have maintained low-to-mid-single-digit guidance. CASA rose 14% YoY, and CASA ratio to deposits is stable at 20.5% (Mar26: 20.6%), the second highest in 41 months and a tailwind for banks, lowering funding costs and cushioning NIM compression.
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Thakral Corporation Ltd Spike in core profits
▪ 1Q26 revenue/adjusted PATMI surged 44%/109% YoY to S$109.5mn/S$3.3mn, in line with our expectations and forming 23%/17% of our FY26e forecasts. The first quarter is seasonally weaker. Results excluded S$31.5mn of net unrealised fair value losses from GemLife and The Beauty Tech Group (TBTG), reflecting short-term share price weakness. Adjusted PATMI more than doubled, driven by a 47% YoY increase in lifestyle segment revenue, while segment EBIT jumped 92.7% YoY to S$6.6mn.
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| UOB KAYHIAN | CGS INTERNATIONAL |
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Delfi (DELFI SP) 1Q26: In Line; Cocoa Tailwind Still Loading
Highlights • 1Q26 revenue of US$159.1m (+6.2% yoy) and EBITDA of US$16.8m (-0.8% yoy) tracked 31% of our full-year estimates, in line on festive seasonality. • Own brands sales surged 19.6% yoy across the region and 20.5% yoy in Indonesia, due to sustained momentum from late 2025. • Maintain BUY with a target price of S$1.68 (25.5x 2027F PE, +0.5SD). We expect 2H26 margin recovery as low-cost cocoa enters the cost base.
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Sanli Environmental Ltd Stronger earnings needed for re-rating
■ FY3/26 revenue (S$139.6m; -11.4% yoy) and net profit (S$2.2m; +39.7% yoy) were below our/Bloomberg consensus’ expectations. ■ Outstanding order book of S$748.1m (as at 28 May 2026) is scheduled for completion progressively through FY27-32F. ■ Assessment of a liquidated damages claim against Sanli (dated 5 Jan 2026) remains ongoing. No provision made as company cites strong defence.
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| LIM & TAN | LIM & TAN |
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The Board of Directors of Lum Chang Creations Limited ($0.84, down 2 cents) refers to the Company’s announcements on 13 February 2026, 20 February 2026, 30 April 2026 and 25 May 2026 in relati on to, among others, the Company’s proposed transfer (the “Proposed Transfer”) of the listing and quotation of the Shares from the Catalist to the Mainboard, the extraordinary general meeting of the Company (the “EGM”) held on 25 May 2026 and the results of the EGM. The Board wishes to announce that, in view of the volatility in the market since the date of the EGM, the Company is currently still monitoring and evaluating the market conditions for the Proposed Placement. While the delay in the compliance placement, upgrade to the mainboard of SGX and also 1 for 1 bonus issue will likely see some short-term share price pressures, we note that after the recent weakness, valuations look more reasonable with forward and prospective PE at 10-11x versus expected growth rate of 15-20%. Dividend yield also looks attractive at 6% while Bloomberg 1 year consensus forward target price of $1, implies a potential upside of 18%. We would look to “Accumulate On Weakness”.
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Civmec Limited (S$1.56, up 2 cts) is pleased to advise that it has recently secured a series of new contract awards, panel agreement extensions and new orders across its business. Capitalized at S$795mln, Civmec trades at 18x forward P/E and 1.6x P/B with a dividend yield of 3.5%. Order book reached a record of $1.5bln, driven by new orders and extension contracts across its diff erent segments. There is a general uplift in market acti vity and Civmec remains focused on converti ng its strong pipeline of tenders into secured contracts. Consensus TP of S$1.61 represents a 3.2% potenti al upside. In view of more promising prospects ahead, but with valuati ons creeping up with the rise in share price since the start of the year, we maintain “Accumulate on Weakness” on Civmec. |
