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CGS CIMB |
UOB KAYHIAN |
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Banks Looking for incremental surprises in 3Q25F
■ We expect SG banks to report net profit declines of 0.5-1.6% qoq in 3Q25F (Fig 1) as lower interest rates outweighed improved investor sentiments. ■ Credit costs were likely flattish qoq in 3Q25F as we do not see significant asset quality deterioration given the stable macroeconomic conditions. ■ DBS’s and UOB’s FY26F outlook guidance, typically unveiled post their 3Q results, will take centrestage, in our opinion. ■ Maintain Neutral on SG banks due to uncertainty in clarity of earnings growth in FY26F given expected interest rate cuts by the US Federal Reserve.
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Aztech Global (AZTECH SP) 3Q25: Results In Line; Customer Demand Remains Soft
Highlights • 3Q25 earnings of S$11m (-21% yoy; -26% qoq) is in line with expectations, bringing 9M25 earnings to form 73% of our full-year estimate. • Revenue declined by 20% yoy in 3Q25 due to subdued customer demand. Aztech is cautiously optimistic for the rest of 2025. • Maintain HOLD and target price of S$0.58. Current valuation appears fair at 14x 2026 PE, close to 3SD above long-term historical PE band.
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MAYBANK KIM ENG |
LIM & TAN |
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Hartalega (HART MK) Preparing for the next battle
Facing challenges head-on; U/G to HOLD HART remains cautious amid rising competition from China glove makers expanding into SEA and targeting the same US market, and it continues to prioritise cost and production efficiency to stay competitive. As buyers diversify suppliers for risk management, M'sia could still capture part of the demand, making efficiency crucial to securing these opportunities. We maintain our earnings forecasts and MYR1.35 TP (on 1.1x CY27E PBV, –1SD to mean). With the weakness in share price, there is now a 10% upside to our TP - U/G to HOLD.
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Seatrium ($2.12, unchanged) reported that is maintaining its focus on renewable energy opportunities despite a US$475 million contract termination for a wind turbine installation vessel (WTIV) with Maersk Offshore Wind. The vessel, meant for the Empire Wind 1 project off the US coast, was nearly completed at 98.9%. This follows another cancellation last year — a S$250 million offshore substation for Empire Wind 2. Seatrium’s market cap stands at S$7.2bln and currently trades at 20.4x forward PE and 1.1 PB, with a dividend yield of 0.7%. Consensus target price stands at S$2.84, representing 34% upside from current share price. Despite the contract loss, we believe Seatrium can leverage on it’s huge fixed cost structure moving forward. We thus maintain an ACCUMULATE ON WEAKNESS RATING. |
| LIM & TAN | |
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Aztech Global Ltd ($0.675, down ½ ct) and its group of companies (the “Group”), designer and manufacturer of IoT devices and datacommunication products, updates its business performance for nine months and the quarter ended 30 September 2025. At its last traded price of 68 cents, Aztech is capitalized at $521mln and trades at 15x FY25 PE, 2x book and 5% yield. With its high valuations, Bloomberg consensus is Neutral on the stock and we believe a HOLD recommendation is appropriate given its decent 5% yield and strong balance sheet.
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