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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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All-Link Air & Sea Limited Freighting ahead on ASEAN-US lanes
■ We initiate coverage on All-Link Air & Sea Ltd (ALAS), an ASEAN-China to US freight forwarding services provider, with an Add call and TP of S$0.92. ■ Its track record of servicing two large MNC customers should further boost wins; in addition, more MNCs are diversifying out from China to ASEAN. ■ We project a FY25F-28F core EPS CAGR of 21%, as ALAS further expands in ASEAN while maintaining ROE above c.25% through its asset-light model.
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Plantations El Niño and biodiesel drive upside
■ El Niño-related supply risks and stronger biodiesel demand support our RM4,800/tonne Malaysian CPO benchmark price forecast for 2027F. ■ We raise FY27F core net profit by 13.7%, though core net profit should still decline 10.1% yoy as weaker crops and higher costs offset firmer CPO prices. ■ Upgrade to sector Overweight; top picks: DSNG and TAPG. A B60 mandate remains outside our earnings base and offers potential demand upside.
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| UOB KAYHIAN | UOB KAYHIAN |
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Strategy Next Up… The Next 50 Index
Highlights • The iEdge Singapore Next 50 Index tracks the performance of the next 50 largest companies listed on the SGX Mainboard. We screened the Next 50 component stocks for companies with attractive fundamentals: • Our top picks for S-REITs are CAREIT (Target: S$1.39), LREIT (Target: S$0.79), NTTDCR (Target: US$1.29) and UIBREIT (Target: S$1.16). Our preferred BUYs include SIE (Target: S$3.75) for the aviation sector and RSTON (Target: S$0.79) and UMSH (Target: S$3.27) for the technology sector. We also like construction play PAN (Target: S$1.88).
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Internet Feedback From Marketing Trip Highlights
• Key investor focus areas discussed during the marketing trip include: a) AI capex requirements, b) funding methodology, c) investment payback period, and d) open-source AI monetisation and the competitive landscape. • In our view, AI/AI Cloud, online gaming and OTAs are poised for further rerating, supported by stronger growth delivery and eased regulatory overhangs. • Maintain MARKET WEIGHT. Top BUYs: Alibaba, NetEase, Z.ai and TCOM.
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| DBS GROUP RESEARCH | |
ULTRAGREEN
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