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CGS INTERNATIONAL |
MAYBANK SECURITIES |
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Mapletree Industrial Trust Awaiting execution on asset recycling
■ 1QFY27 DPU of 3.11 Scts was broadly in line at 26.6% of our FY27F forecast of 11.71 Scts; DPU declined 4.9% yoy but improved 0.6% qoq. ■ Management continues to target S$500m-600m of North American divestments over approximately two years to address vacancy exposure. ■ Execution of the targeted divestments is a key re-rating factor, although hedge repricing should continue to cap near-term DPU recovery. ■ Maintain Add due to FY27F DPU yield of 6.1%, with an unchanged DDMbased TP of S$2.22.
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Suntec REIT (SUN SP) Stable execution despite mixed overseas performance
DPU supported by interest saving and JV income 1H26 DPU rose 24.8% YoY to SGD0.03936, driven by stronger Singapore office and retail performance, as well as lower financing costs and the absence of the Australia withholding tax provision recorded in 1H25. Gearing remained manageable despite rising to 43.0%, while the all-in cost of debt continued to decline. With 1H26 results broadly in line with our expectations, we maintain our full-year forecasts. We downgrade Suntec REIT to HOLD, with an unchanged TP of SGD1.56.
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| MAYBANK SECURITIES | UOB KAYHIAN |
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CSE Global (CSE SP) Houston facility tour, positive outlook
Maintain BUY and TP of SGD2.25 We visited CSE facilities in Houston, US, especially its newly leased 241,000 sqft facility for its key data centre client, and were impressed with its positive outlook. We expect short-term headwinds from higher upfront costs, which will likely impact 1H26E earnings. Ramp-up in production is also restricted by copper rod supply bottlenecks, which management expects to resolve by 4Q26. However, we expect 2H26 earnings to make up for any shortfall. CSE also acquired SEI Wireless Solutions for USD8m and will add about USD1-1.5m to its PATMI. Retain BUY and TP of SGD2.25.
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Contemporary Amperex Technology Co (300750 CH) 2Q26: In Line; Cutting Margins, Lifting Volumes
Highlights • 2Q26 net profit of Rmb22.5b (+36.5% yoy/+8.7% qoq) was in line, taking 1H26 net profit to Rmb43.3b (+42.0% yoy). However, gross profit per GWh fell to Rmb147m and net profit per GWh dropped to Rmb97m. • We raise 2026-28 sales volume by 10%/7%/0% to 1,000/1,230/1,450GWh respectively on ESS/AIDC demand, but cut gross margin to 23.4%/23.7%/23.9%; we expect margins to stabilise from 2H26. • We cut net profit by 1%/7%/12% to Rmb93.6b/Rmb116.4b/Rmb139.1b respectively. Maintain BUY; we cut target price to Rmb585.00/HK$675.00 (23x 2027F PE).
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| PHILLIP SECURITIES | PHILLIP SECURITIES |
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SIA Engineering Co. Ltd Temporarily grounded for overhaul
• 1Q27 PATMI fell 6.1% YoY to S$40.3mn, forming 22% of our full year FY27e estimate. This was primarily driven by a S$7mn reduction (down 19.2% YoY) in share of profits from the engine and component segment arising from higher investment costs. • Associates and JV income fell 18% YoY to S$31mn. The engine and component segment fell 19.2% (S$7.0mn) from higher investment costs, primarily associated with the SAESL JV. However, profits from the Airframe and Line Maintenance segment were up 14.3% YoY (S$0.2mn) from growth in flight handling volume (up 2.9% YoY). We expect SAESL’s investment costs to peak this FY. • We maintain BUY with unchanged TP of S$4.06. SIAEC's strengthening foothold in the Indian MRO market through Air India, regional maintenance capacity expansion across Malaysia, Cambodia and the Philippines, as well as its recent market entry into China with the Arport AME JV, positions the group to capture a growing share of APAC MRO demand. SIA Engineering is trading at a FY27e P/E of 19.9x.
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Keppel DC REIT Acquisitions and higher rents drive 11% DPU growth
▪ 1H26 DPU of 5.71 Singapore cents (+11.3% YoY) was in line with our expectations, forming 52% of our FY26e forecast. Growth was driven by the accretive acquisition of Tokyo Data Centre 3, alongside positive rental reversions and escalations across the portfolio, partially offset by the divestment of Kelsterbach Data Centre. DI increased by 18.5% YoY, outpacing DPU growth due to a larger unit base following equity fund raisings to finance acquisitions.
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