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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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SIA Engineering Short-term SAESL expansion costs hit 1Q
■ 1QFY3/27 net profit of S$40.3m was 23% of our full-year/LSEG consensus, below expectations on the increase in SAESL’s expansion costs. ■ Nevertheless, we maintain our forecasts for now, as other growth drivers may contribute more strongly in future quarters as an offset. ■ Reiterate Add, with an unchanged TP of S$3.80, still based on a FY27F target P/E multiple of 25x, 1 s.d. above mean since 2006.
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Keppel DC REIT Growth runway remains intact
■ KDCREIT reported 1H26 DPU of 5.714 Scts (+11.3% yoy) despite the enlarged unit base following the 2025 equity fundraising. ■ We expect portfolio reversion to remain at c.10% in 2H26F, supported by signed renewals commencing in 2H26F. ■ We reiterate our Add rating with a higher DDM-based TP of S$2.68 (COE: 6.61%).
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| UOB KAYHIAN | UOB KAYHIAN |
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Baidu Inc (9888 HK) 2Q26 Results Preview: AI Cloud Growth Offset by Advertising Weakness; Strategic Catalysts In Focus
Highlights • Baidu is expected to report 2Q26 results in mid- to late-August. We expect Baidu Core revenue to decline 1% yoy, with a 44% AI Cloud growth offset by a 16% advertising decline, while core operating profit should decline 21% yoy. Key events to look out for include higher 2H26 AI investment, the Apple partnership, Kunlunxin spin-off, and a dual-primary listing. • Maintain BUY with a higher target price of HK$186.00 (US$190.00).
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Automobile Weekly: Policy Raises The Bar As New-Model Debuts Turn Defensive
Highlights • China ended its 11-year battery tax exemption – it will be implementing a 2% tax on lithium-ion cells from Sep 26, which will rise to 4% in 2027. • MIIT has ordered production-consistency audits, tougher ADAS safety checks and an end to irrational competition, while Hainan will ban new ICE-car sales by 2030. • Debuts have turned defensive: GWM cut Tank 300 hybrid prices and Li Auto held the L6’s pricing. Meanwhile, XPeng's MONA L03 drew 20,000 orders. • Maintain MARKET WEIGHT. Top BUYs: CATL, BYD, Geely, Minth; SELL Li Auto.
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| DBS RESEARCH | |
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SINGAPORE EXCHANGE
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