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CGS INTERNATIONAL |
UOB KAYHIAN |
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Sembcorp Industries Sheltered from gas shocks
■ Investors’ questions during our 2-day NDR in Kuala Lumpur centered around impact from high gas prices, Alinta acquisition, and China RE curtailment. ■ Gas optimisation within the group and potential higher-than-expected spark spreads could provide some earnings upside, if global tensions persist. ■ Management reiterated its priority to gradually increase its dividend payout ratio to close to 60-70%, despite higher leverage from Alinta acquisition.
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UltraGreen.ai (UGAI SP) Set To Benefit From Multiple Positive Developments
Highlights • The recent cyberattack on Stryker provides a near-term opportunity for UltraGreen, as it could potentially increase demand for UltraGreen’s ICG vials. • UltraGreen continues to build momentum in APAC, with several regulatory approvals obtained, supported by a strong net cash position. • UltraGreen is trading at an attractive PE of 20x 2026F, 35% discount vs peers. Maintain BUY with an unchanged target price of US$1.95.
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OCBC GROUP RESEARCH |
CGS INTERNATIONAL |
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SG Plantations: Substance over style
Summary Points
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Rubber Gloves Aftershocks of the Strait of Hormuz closure
■ Malaysian glove producers are likely to face a minimal impact from higher raw material costs in the near-term. ■ Longer-term energy market dislocations could negatively impact production and demand. ■ Reiterate sector Underweight. Sector valuations are rich at CY27F 14.7x P/E despite ROEs at only 5.5%. Top Glove is our preferred pick.
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| DBS GROUP RESEARCH | CGS INTERNATIONAL |
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China Aviation Oil (Singapore) Corp Capital story in-tact; margins could take flight amid turbulence
Investment Overview CAO is Asia’s largest physical supplier of jet fuel and the key importer for China’s civil aviation sector, backed by its parent, China National Aviation Fuel Group (CNAF). CNAF’s role as China’s exclusive aviation-fuel distributor grants CAO privileged access to the country’s import market and a secure demand base. The company’s strength lies in its integrated network spanning procurement, logistics, and infrastructure, supported by associates such as SPIA and OKYC. The company has also emerged as an early adopter of sustainable aviation fuel (SAF) in Europe and parts of Asia, effectively leveraging its global supply expertise to meet the growing demand from airlines for lower-carbon fuel solutions.
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Marco Polo Marine Awarded a 15-year charter contract
■ MPM secured a long-term contract worth S$118m to provide emergency services to Taiwan’s Marine Port Bureau for 15 years. ■ Implied charter rate is better than our expectations; we see limited upside to our FY26F-28F net profit estimates due to profit sharing. ■ Reiterate Add on multiple re-rating catalysts yet to materialise - contract for CSOV Plus, listing of Taiwan subsidiary, and newbuild order wins.
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