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CGS INTERNATIONAL |
MAYBANK SECURITIES |
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SATS Ltd Headline PATMI masks resilient operations
■ 1QFY3/27 revenue grew 11.3% yoy to a record S$1.68bn, supported by strong gateway services revenue growth of 12.8% yoy. ■ However, higher opex and lower SoAJVs contribution translated to softer 5.9% yoy PATMI growth in 1QFY27, slightly below our c.S$80m estimate. ■ Reiterate Add as we believe SATS’s continued revenue growth will drive better operating leverage from 2QFY27F; TP unchanged at S$5.20.
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YTL Power (YTLP MK) A slight miss
Increasingly a data centre play YTLP’s 4QFY26 results were slightly below our expectations due to a higher-than-expected tax rate. YTLP continues to be very aggressive with its data centre rollout, with plans to replicate a second data centre park in Sedenak. Maintain HOLD with a higher SOP-based TP of MYR5.20 (from MYR4.20) following our earnings revisions. YTLP yields c.2.0%.
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| CGS INTERNATIONAL | MAYBANK SECURITIES |
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Petronas Chemicals Group Potential PPC sale something to look out for
■ 1H26 core net profit of RM840m was below expectations at just 40% of our previous full-year estimate, due to faster-than-expected fall in selling prices. ■ Consequently, we cut our FY26F core EPS forecast by 37% and cut our TP to RM5.94 (1.3x P/BV), from RM6.58 previously (1.4x P/BV). ■ Reiterate Add as the potential sale of PCG’s 50% stake in PPC could raise our FY27F-28F core net profit forecasts by c.RM1bn p.a.
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Sunway Healthcare (SUNMED MK) Growth intact, but increasingly priced in
D/G to HOLD; TP unchanged at MYR2.01 1H26 CNP came in within our/consensus estimates as occupancy ramps up across all five hospitals, supported by improved case-mix and better EBITDA margins in SMC D’sara and Ipoh. We expect stronger earnings in 2H26 as revenue intensity and patient volumes accelerate with medical tourism, higher-acuity procedures and bed capacity expansion. However, we believe these positives are mostly priced at current valuations. Hence, we D/G our call to HOLD (from BUY) but leave our MYR2.01 TP unchanged.
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| LIM & TAN | PHILLIP SECURITIES |
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CSE Global Limited ($1.24, down 0.01), a global systems integrator providing electrification, communications and automation solutions, announced its financial results for the half year ended 30 June 2026 (“1H2026”) recently. The Group delivered revenue of S$561.5 million in 1H2026, representing a 27.4% year-on-year increase from S$440.9 million in the previous corresponding period (“1H2025”). The growth in revenue was primarily driven by the Electrification business segment in the Americas region with higher project revenues for the data centre market. Correspondingly, gross profit grew by 8.8% year-onyear to S$133.7 million, while adjusted net profit stood at S$13.9 million in 1H2026. While CSE 1H’26 performance was weak, it was also expected and 2H’26 is expected to recover, lifting full year earnings to $41mln (up from $35mln last year), translating to a forward PE of 20x and dividend yield of 2.3%. With consensus 1 year target price of $1.88, we see an opportunity to Accumulate CSE on some price weakness.
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Singapore Banking Monthly Earnings above estimates on record fees and trading
▪ Singapore interest rates rose for the third consecutive month, with July's 3MSORA up 6bps MoM to 1.13% and down 80bps YoY, the smallest YoY decline in 18 months. MAS then tightened policy on 27 July for the second meeting in a row, steepening the S$NEER appreciation slope, which pulls SGD rates the other way even as the Fed turns hawkish. Singapore loan growth crossed 9% YoY for the first time since COVID (Jun26: +9.2% YoY). CASA grew 16% YoY, holding the CASA ratio at 20.6% of deposits and keeping funding costs contained.
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