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CGS INTERNATIONAL |
UOB KAYHIAN |
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Plantations Weather risk building
■ Malaysia palm oil inventory rose to 2.6m tonnes (mt) in July, in line with Bloomberg consensus expectation. ■ Indonesia's hotspot activity picked up sharply in Aug 2026, pointing to signs of a developing dry spell that could raise haze risk in Malaysia. ■ Maintain Overweight, supported by rising supply risks in 2H26F and resilient biodiesel demand.
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Beng Kuang Marine (BKM SP) 1H26: Results In Line; Expect Higher Service Demand In 2H26
Highlights • BKM reported 1H26 revenue of S$55.7m (+9.7% yoy), representing 51% of our forecast. PATMI came in at S$3.5m, in line at 35% of our forecast. • BKM secured S$85.2m of new contracts in 1H26, while its outstanding orderbook stood at S$70.7m. • We remain positive on BKM, expecting an earnings uplift in 2H26 on higher job demand and ASOM consolidation. Maintain BUY and target price of S$0.75.
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| UOB KAYHIAN | UOB KAYHIAN |
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SEA (SE US) 1H26: Solid Delivery Across All Segments; Outlook Raised
Highlights • 1H26 revenue of US$14.9b (+47% yoy) was better than expected, representing 60% of our forecast, driven by all business segments. • Shopee’s take rate rose to about 14.6%, Monee's loan book grew to US$11.1b (+62.5% yoy), and Garena bookings normalised to US$763.5m. • Maintain BUY with an unchanged target price of US$181.18, after rolling our valuation base to 2027F and factoring in a re-rating.
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Tencent Music Entertainment Group (1698 HK) 2Q26: Resilient Earnings With Potential Ximalaya Synergies
Highlights • TME delivered solid 2Q26 results that were slightly above our expectation. Revenue rose 5.8% yoy to Rmb8.9b, while music-related services revenue increased 11.0% yoy to Rmb7.6b. Membership revenue grew 8.1% yoy to Rmb4.79b, supported by continued SVIP expansion and the consolidation of Ximalaya. Non-GAAP net profit rose 4.4% yoy to Rmb2.7b, 7% ahead of our and consensus expectations, with net margin remaining solid at 31%. • Maintain BUY with a higher target price of HK$53.00 (US$14.00).
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Yangzijiang Shipbuilding (YZJSGD SP) The cycle sails on; U/G to BUY
U/G to BUY: shipbuilding upcycle has further to run We upgrade YZJ to BUY and raise our DCF-based TP to SGD5.00 (from SGD4.15), as strengthening newbuild demand and a firmer pricing outlook increasingly point to a longer shipbuilding upcycle than we had previously factored in. Large containership enquiries have re-accelerated alongside continued tanker/gas-carrier demand, while 2029 slots are nearly full and YZJ remains confident of achieving its USD4.5b FY26 order target. Importantly, newbuild prices have stabilised near historically elevated levels, supporting margin durability as capacity expands. We raise FY26-28 NPAT forecasts by 12-19%; YZJ trades at just ~8x forward P/E despite ~25% ROE, a sizeable discount to major Asian shipbuilding peers.
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Info-Tech Systems (ITSL SP) Integrated solutions, recurring growth
Integrated SME ecosystem; Initiate with BUY Info-Tech Systems (ITSL) provides integrated cloud-based HRMS, payroll and accounting solutions, alongside training and ancillary services, primarily to SMEs across Singapore, Malaysia, Hong Kong and India. We initiate coverage with BUY and a SGD1.46 TP, based on 16.5x FY26E P/E, supported by a 20.8% FY25-28E PATMI CAGR, net cash balance sheet, 50% dividend payout ratio and c.4.6% FY26E dividend yield. Key risks include intense competition, SME customer attrition, AI related disruption and reduced government subsidies for software adoption and training.
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