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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Grab Holdings Setting the bar high
■ Grab reports its first full-year profit in 2025F and set a high target of US$1.5b adjusted EBITDA for 2028F. ■ FY26F adjusted EBITDA to grow 43% yoy, with 20% yoy on-demand GMV growth, improving margin and financial services to breakeven in end-2026F. ■ Maintain Add, with a lower target price of US$6.25.
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Far East Hospitality Trust A more exciting year ahead
■ FEHT reported FY25 DPU of 3.70 Scts (-8.4% yoy), forming 98% of our FY25F estimate of 3.76 Scts. ■ FEHT is open to recycling assets in Singapore. Management expects interest expense savings to continue into FY26F. ■ Reiterate Add, with an FY26F dividend yield of 5.7%. We lower our DDMbased TP to S$0.72.
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PHILLIP SECURITIES |
CGS INTERNATIONAL |
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Singapore Strategy Strategic pivot to AI + Equities booster
▪ FY2025 overall fiscal surplus was S$15.1bn (1.9% of GDP), more than double the estimated surplus of S$6.8bn (or 0.9% of GDP). It excludes land sales of S$20.7bn. Revenue was S$8bn higher than expected due to higher corporate and personal tax, while expenditure and net investment returns were within budget. FY2026 is expected to record a surplus of S$8.5bn (1% of GDP).
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Singapore Airlines Fundamentals have changed for the better
■ We estimate S$350m-400m core net profit for SIA’s 3QFY3/26F (Oct-Dec 2025), up from just S$239m for 1HFY26, on the back of strong demand. ■ Upgrade from Reduce to Hold as IATA signalled stabilising pax yields globally with robust demand for premium cabin seats in Asia. ■ We raise our TP to S$7.23, based on end-CY26F P/BV of 1.45x (+2 s.d. from mean since 2001), up from P/BV of 1.15x (+1 s.d. from mean since 2011).
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| CGS INTERNATIONAL | UOB KAYHIAN |
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ISOTeam Ltd Margin recovery in progress
■ 1HFY26 PATMI was S$3.3m (+70% yoy), in line at 40% of our FY26F, due to margin recovery and savings from housing workers at its headquarters. ■ We expect more savings should ISO deliver on plans to re-house its workers. ■ We reiterate Add for its recurring business model and profit/margin recovery.
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Equity Strategy Singapore Budget 2026: Building From Strength
Highlights • The Singapore Budget for 2026 did not provide any major surprises, with the financial sector likely to be the most identifiable market beneficiary. • We remain bullish on the STI and the Singapore market • Key stock picks are CLAR, CLI, CIT, DBS, DFI, FR, GENS, KEP, SE, ASL, CAREIT, CSE, FEH, IFAST, UGAI and VALUE.
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