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CGS INTERNATIONAL |
PHILLIP SECURITIES |
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Seatrium Ltd Positive margins but waiting for orders
■ GM improved in 1Q26 on better project mix and cost savings from divestments. We are confident of STM achieving FY26F GM of 9.6%. ■ End-1Q26 orderbook was S$15.5bn, down 13% qoq on slow YTD order wins. We think pipeline conversion could be skewed towards 2027F. ■ Reiterate Add but with a lower TP of S$2.52 to reflect softer order win estimates of S$4.3bn (from S$6bn) for FY26F.
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Geo Energy Resources Ltd Still on track
▪ 1Q26 results were below expectations. Revenue/PAT were 17%/7% of our FY26e forecast. 1Q26 production declined 36% YoY to 2.0mn MT, caused by a 1.2mn MT decline at the TBR mine. As TBR approaches the end of its mine life, production will shift to the larger TRA mine, which has the new infrastructure. Production target for FY26e of 11.5-12.5mn MT is unchanged (FY25: 12.5mn MT).
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| PHILLIP SECURITIES | UOB KAYHIAN |
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Valuetronics Holdings Ltd Returning more capital, but earnings sluggish
▪ FY26 results were below expectations. Revenue/adj. PATMI was 93%/91% of our FY26 forecasts, respectively. Adj. PATMI declined 16% YoY to HKD67mn. Effective tax in 2H26 more than tripled to around 15% due to full utilisation of tax losses in Hong Kong and the partial end of tax incentives in Vietnam. The company intends to return HKD300mn (S$49mn) in FY27/28 via special dividends and share buybacks. The ordinary dividend payout ratio is also raised from up to 50% to between 50% and 70%.
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REITs S-REITs Monthly Update (May 26)
Highlights • S-REITs are actively recycling assets, supported by advantageously low domestic interest rates. The sector is defensive and provides an attractive yield spread of 3.8%, which is 0.9SD above the long-term mean. • Maintain OVERWEIGHT. We bargain hunt with BUY recommendations for blue-chips CICT (Target: S$3.06), FLT (Target: S$1.33), MPACT (Target: S$1.75), NTTDCR (Target: US$1.43) and UIBREIT (Target: S$1.17).
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| LIM & TAN | MAYBANK SECURIITES |
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Zixin Group Holdings Limited / Zixin (S$0.033, unchanged) a leading biotech-focused sweet potato integrated industrial value chain operator, achieved a net profit of RMB 61.42 million (approximately SGD 11.67 million) on the back of 43.0% growth in revenue of RMB 607.47 million (approximately SGD 115.42 million1) for the financial year ended 31 March 2026 (“FY26”). Zixin’s market cap stands at S$68.6mln and currently trades at 5.2x forward PE and 0.5x PB, and does not pay a dividend currently. Our target price stands at S$0.066, pegged to 10x FY26F PE. Given the current strong growth trajectory of Zixin and it’s latest expansion plans, we continue to maintain a BUY recommendation on Zixin.
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UI Boustead REIT (UIBREIT SP) Stable yield, visible growth
Future-ready portfolio with attractive total return, initiate with BUY and TP of SGD1.03 We initiate coverage of UIB REIT with a BUY and DDM-based target price of SGD1.03. We believe the strategically located assets within established industrial clusters in Singapore and Japan catering to reputable tenants in the high-tech and innovation-driven sectors augur well for income resilience and organic growth. The sponsor’s expertise as a Pan-Asian industrial real estate platform provides access to inorganic growth. Valuations are attractive versus peers with 8.3% FY27e yield and 0.93x PB.
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