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CGS INTERNATIONAL |
DBS GROUP RESEARCH |
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Ping An Insurance Investor feedback from MY, SG and TH roadshow
■ Ping An reiterated its confidence in meeting its previously announced targets across life (CSM and NBV), P&C (COR), Bank and Asset Management (net profits). ■ In particular, it remained highly confident of its FY26F double-digit NBV growth target, though it did caution that there could be monthly/quarterly volatility in growth. ■ 2Q-3Q26F volatility in NBV growth could arise due to high-base effects and short-term regulatory impacts to bancassurance sales. ■ While previously announced actuarial assumption changes could weigh on 1Q-3Q26F NBV margins yoy, this is not an issue for FY26F NBV growth. ■ Reiterate Add and HK$82 TP. Ping An remains a top domestic insurer sector pick.
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Frasers Centrepoint Trust
Hit the Road, White Sands Sale of White Sands Mall a strategically rationale move to focus on its core “dominant” malls Transaction price at c.8.4% above valuation; exit yield of 4.6% is fair for an asset that is likely seeing increasing challenges in its sub-market Investors should focus on its increased debt capacity with lower gearing of c.36.5 post divestment in view of its upcoming series of asset enhancements; projected c.1.9%dilution to DPU likely a short term pain BUY call maintained, TP SGD 2.75
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Addvalue Technologies (ADDV SP) Pullback an opportunity after successful SpaceX listing
US space valuations supported by Space X listing The successful Space X listing in the US supports broader US space sector valuations, in our view. This will likely be a positive for Addvalue which is currently exploring a potential US listing of its Inter-Satellite Data Relay System (IDRS) unit. We believe the recent pullback in Addvalue’s share price presents an attractive opportunity for investors to accumulate the stock. We also expect more Advanced Digital Radio System (ADRS) orders in coming months. Retain BUY with a SGD0.34 TP, pegged to a 30x FY27E price-to-sales ratio.
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Marco Polo Marine (MPM SP) Non-deal roadshow in KL
Share price correction presents opportunity We brought the management of MPM on a non-deal roadshow (NDR) in KL on 23 June 2026 and came away positive on its outlook. The shipyard spinoff (expected by end 2026) would allow MPM to recognise revenue and profits from vessels it constructed as well as raising capital for expansion. Both the CEO and a substantial shareholder added to their ownerships stakes recently, which we think marks a strong vote of confidence in MPM’s future prospects. Maintain BUY with an unchanged TP of SGD0.24, as we believe MPM is entering a rapid growth phase from FY26E to FY30E. Our TP is based on an unchanged 23x FY27E P/E.
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| MAYBANK SECURITIES | LIM & TAN |
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SATS (SATS SP) More than just a relief rally
Maintain BUY; Raise TP to SGD5.09 We have greater confidence in management's ability to deliver its FY29E financial targets as multiple growth drivers become increasingly visible, warranting a lower execution risk premium. Accordingly, we lower our WACC from 10.6% to 10.0% and raise our FY26-27E earnings forecasts by 2.5%/9.7%, respectively, to reflect the meaningful contribution from the Thailand central kitchen in FY27E. Despite the recent rally, SATS is trading at an attractive 21x FY27E P/E with a 1.5% dividend yield. We maintain BUY and raise our DCF-based TP to SGD5.09.
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Lum Chang Creations / LCC (S$0.78, up 2.5 cts) has announced the completion of its placement of 35.0 million shares, comprising 15.0 million new shares issued by LCC and 20.0 million existing shares sold by Lum Chang Holdings Limited (“LCHL”) and Mr. Lim Thiam Hooi (“Mr. Lim”), at a placement price of S$0.759 per share. Capitalized at S$246mln, LCC trades at a forward P/E of 10.2x, P/B of 7.3x and 6.4% dividend yield. The placement (through a mix of new and vendor shares) to several well-known funds will increase the public float to slightly above 25% and facilitate the upgrade to the Mainboard. The proceeds will be used for purposes including regional expansion, potential acquisitions and further entry into interior fit-out and additions and alterations projects. We maintain our Buy recommendation with a target price of $1.04. |
