|
CGS INTERNATIONAL |
CGS INTERNATIONAL |
|
Seatrium Ltd All eyes on orders in 2H26F
■ We increase our FY26F order wins to S$6bn (previously S$4.3bn), on the back of STM’s recent FLNG LOI and potential for more gas-related orders. ■ We also raise our FY26F-28F EPS estimates by 1-8%, reflecting higher order wins in 2026F, lower SG&A and interest costs. ■ Reiterate Add with a higher TP of S$2.60. Sizeable order wins (potentially from the US and Africa) are a re-rating catalyst for 2H26F.
|
BRC Asia Ltd Prioritising margins over orderbook size
■ BRC's S$1.69bn orderbook extends visibility into 2030F, allowing it to be selective and abstain from price wars, prioritsing margins. ■ Next leg of growth will be driven by expansion of its Malaysian market share (through SSM) and M&As, backed by BRC's improving net cash position. ■ Reiterate Add. We believe BRC will benefit from the Singapore construction upcycle and Singapore’s Equity Market Development Programme (EQDP).
|
| UOB KAYHIAN | UOB KAYHIAN |
|
Strategy Financial Conditions Have Tightened
Highlights • Our STI target of 6,682 is based on an equity risk premium of 3.0%, which is 1x SD below the long-term mean, and risk-free rate at 2.5%. The target represents a fair 2026F PE of 18.2x and upside of 18% for the STI. • We position defensively due to headwinds from fiscal strains in the US and Japan and elevated inflation from a prolonged conflict in the Middle East. Our investment themes: a) beneficiaries of higher bond yields: OCBC (Target: S$32.50); b) value creation through asset recycling and monetisation: Keppel (Target: S$13.26), SingTel (Target: S$5.50) and CityDev (Target: S$11.50); c) growth from Singapore as an Aviation Hub: SATS (Target: S$5.00) and SIA Engineering (Target: S$3.75); d) S-REITs with yields significantly above government bonds: NTT DC REIT (Target: S$1.31) and UI Boustead REIT (Target: S$1.16); e) value-oriented technology picks: Venture Corp (Target: S$21.10) and Valuetronics (Target: S$1.88); and f) SMID Gems: Beng Kuang (Target: S$0.75) and BRC Asia (Target: S$5.30).
|
PDD Holdings (PDD US) 2Q26: Mixed Results; Focus On Overseas Profitability
Highlights • PDD reported mixed 2Q26 results. Total revenue increased 8%, 2-4% below our and consensus estimates. Adjusted net profit declined 12% yoy to Rmb28b, supported by higher interest/investment income of Rmb13.5b, largely in line with our expectation. Gross margin expanded 1.4ppt yoy to 57.3%. Non-GAAP net margin dropped 6ppt yoy to 25.4%, due to higher G&A expenses. • Upgrade to BUY with a higher target price of US$115.00.
|
| LIM & TAN | MAYBANK SECURITIES |
|
Kingsmen Creatives Ltd ($0.525, unchanged), a leading creator of experiences, announced recently a net profit of S$2.4 million for the six months ended June 30, 2026 (“1H 2026”) compared to a net profit of S$1.6 million for the previous corresponding period (“1H 2025”). Group revenue increased 3.9% to S$168.5 million in 1H 2026, compared to S$162.1 million in 1H 2025. The Exhibitions, Thematic & Attractions division registered revenue of S$65.9 million in 1H 2026, a decrease of S$4.0 million, or 5.7%, from S$69.9 million in 1H 2025. Revenue continued to be supported by clients’ demand for immersive, experienceled platforms to engage audiences through new shows, branded environments and experiential activations. The period-on-period decline was primarily attributable to the phased ramp-up of new projects, which resulted in lower revenue contributions during 1H 2026. We maintain BUY on Kingsmen given its undemanding PE ratio of 6-7x, net cash of $60-70mln vs market cap of $105mln and attractive yield of 3000 5.8% (assuming unchanged 3cts per share).
|
Singapore REITs June quarter review
Steady performance Our coverage REITs delivered average mid-single-digit YoY DPU growth, supported by resilient operating metrics and lower financing costs. This was accompanied by lower gearing, aided by active capital recycling. Operational performance was characterized by stable occupancy and midsingle-digit positive rental reversions. While yield volatility may create tactical opportunities, we believe healthy economic growth should support medium-term compounding for investors who remain invested. Our picks are CAREIT, CICT, CLAR, KDCREIT, MLT, OUE REIT, PREIT and SUN.
|
