• This month is one of market weakness, as had been widely anticipated. Still there's lots of investor interest, as shown at last week’s SMID Cap Retail Webinar organised by UOB Kay Hian. • More than 180 retail investors, eager for clarity amid the market swings, raised lots of questions: Is this volatility — driven by rates, geopolitics, oil prices and liquidity shifts — a broad buying opportunity? Many asked whether the sharp sell-offs in certain names were mostly sentiment-driven dips worth accumulating. There was also concern about stretched tech and IPO valuations. • UOB Kay Hian analysts addressed those concerns as well as explained why they continued to favour four specific picks — Beng Kuang Marine, Huating Global, Valuetronics and Food Empire. Read excerpts below ..... |
Excerpts from UOB KH report
Analysts: John Cheong, Heidi Mo & Tang Kai Jie
• The SMID Cap retail webinar on 11 Jun 26 garnered interest from over 180 retail investors.
We highlighted four key SMID-cap picks for Jun 26, namely BKM, HUAGL, VALUE & FEH.
|
Company |
Price 23 Jan 26 (S$) |
Target Price (S$) |
Upside to TP (%) |
PE 25 (x) |
PE 26F (x) |
PE 27F (x) |
Yield 26F (%) |
|
Beng Kuang Marine |
0.49 |
0.75 |
53.1 |
18.6 |
14.7 |
9.2 |
1.2 |
|
Huating Global |
0.71 |
1.23 |
73.2 |
6.6 |
6.4 |
5.9 |
2.3 |
|
Valuetronics |
1.10 |
1.88 |
70.9 |
15.5 |
14.9 |
15.9 |
4.4 |
|
Food Empire |
2.43 |
3.49 |
43.6 |
27.9 |
14.4 |
13.0 |
4.8 |
We like BKM for its improving earnings visibility from growing FPSO exposure. Recent contract wins have lifted its pro forma orderbook to S$92.5m, providing strong support for FY26-27, while full consolidation of ASOM should further enhance earnings. Backed by a net cash position and solid project pipeline, BKM remains well-positioned for sustainable growth. Our target price is S$0.75, pegged to 14x 2027F PE. |
| Huationg Global |
We like Huationg for its strong earnings momentum, robust S$535m orderbook and healthy net cash position.
The group's participation in major infrastructure projects provides strong revenue visibility through 2026-27, while its re-entry into dormitory operations revives a high-margin earnings stream.
A potential SGX Mainboard transfer could also serve as a positive re-rating catalyst.
Our target price is S$1.23, pegged to 11x 2026F PE.
| Valuetronics |
We like Valuetronics for its high-margin segment-driven earnings, strong balance sheet and enhanced capital return plan.
FY26 results were supported by record ICE revenue and improved margins, while the higher payout policy and HK$300m capital return programme signal sustained shareholder distributions.
With net cash strength and a better product mix, we see continued earnings quality and capital return upside.
Our target price is S$1.88, pegged to 19x ex-cash 2028F PE.
| Food Empire |
Cafe Pho is Food Empire's bestseller in Vietnam.We like Food Empire for its strong growth momentum, record revenue performance and successful Asia-led expansion.
Asia has now become the group’s largest revenue contributor, supported by broad-based growth and upcoming capacity additions across key markets.
With new factories driving the next leg of expansion and potential margin tailwinds from easing coffee prices, we see a sustained multi-year growth outlook.
Our target price is S$3.49, pegged to 25x 2026F PE.
 John Cheong, Head of Small Mid Cap ResearchOverall, we continue to favour our SMID-cap picks (BKM, HUAGL, VALUE and FEH) for their strong business fundamentals and differentiated growth drivers.We believe these companies are well-positioned to be key beneficiaries of the Singapore SMID-cap upcycle, supported by potential tailwinds from the deployment of EQDP funds, which could further enhance liquidity and re-rating potential across the sector. |
→ See also: GEO ENERGY: The Government Scare That Fizzled; Time to Re-focus on Strong Fundamentals