|
CGS INTERNATIONAL |
UOB KAYHIAN |
|
Public Bank Bhd Taking PFH private
■ On 8 Sep 2026, PBB proposed to take its 73.2%-owned PFH private, which could cost it HK$734.9m (or RM382.1m). ■ We estimate that the proposal would have negligible positive impact of RM6.2m on PBB’s FY26F net profit. ■ Reiterate Add on PBB, premised on its capital management initiatives, push for fee income growth and our expectation of ROE expansion over FY26-28F.
|
Delfi (DELFI SP) 1H26: Notable Performance Amid Multiple Challenges
Highlights • Cocoa prices and forex remain near-term constraints. We hope easing input costs and established brand strength could support a recovery in 2027. • Delfi reported 1H26 earnings growth of 5% yoy despite operating in an environment of elevated raw material costs and weak currencies. Revenue was in line with our expectation, but earnings were below our estimates. • Maintain BUY with a 42% lower target price of S$0.98, pegged to 17x 2027F PE, based on the historical mean.
|
| LIM & TAN | LIM & TAN |
|
OKP Hldgs reported a strong set of 1H26 results, with revenue (+9.0% YoY) and PATMI (+43.9% YoY) forming 45.0% and 54.9% of our FY26 forecasts respectively. The surprise was on margins, with GPM up 6.8ppt YoY to 37.6%, which we view as further evidence of execution capability that is not easily replicated. OKP subsequently secured a S$90.6mln LTA contract for the Dawson Road network, bringing total order book to S$797.9mln with contracts running through 2031. OKP continues to build its warchest to S$187mln (net cash c.48.6% of market cap), which allows it to be ready for any acquisition opportunities and ability to take on more projects comfortably. OKP subsequently announced a maiden special interim dividend of 0.6 Scts, which we view as a positive signal of management’s confidence in their outlook. We thus maintain our profit forecasts and roll our valuation forward to FY27, based on an unchanged 11x P/E multiple, deriving a revised target price of S$1.10 (previously S$1.03). We view this multiple as fair, as OKP remains one of the few contractors able to execute awarded projects effectively, underpinned by strong execution capabilities and hard-to-replicate competitive moats, which we believe should support gross margins above 30% through the construction upcycle. Our 11x target multiple is also broadly in line with the broader construction peer average of 11.1x, which we believe is justified given OKP’s superior margins, strong net cash position and multi-year earnings visibility. Valuations remain undemanding, with OKP currently trading at just 6.8x FY27F P/E, or 2.6x on an ex-cash basis, offering meaningful room for a re-rating at least towards the peer average. Maintain BUY.
|
Centurion Corporation Limited / Centurion ($1.54, down 0.05) which owns, develops and manages quality specialised accommodation assets, today announced that it has entered into a sale and purchase agreement (“SPA”) to acquire a worker accommodation asset in Pasir Gudang, Johor, comprising two adjoining parcels, for RM214.5 million (equivalent to approximately S$67.2 million).
Valuations and Recommendations We continue to like Centurion as its ability to continue to grow its portfolio of purpose built worker accommodation asset post the part divestment of its more matured assets into Centurion REIT suggests that growth will continue at Centurion. The REIT platform would allow Centurion to be able to divest stabilized and matured assets at a fair price while the parent company continues to acquire and develop assets and increase recurring income streams via the asset management platform. The latest acquisition in Malaysia would allow them to increase their freehold portfolio of purpose built worker accommodation assets in Malaysia where they had previously offload 2 assets to the Malaysian government at a premium. We continue to have Centurion as a top Alpha pick in 2H’26 and see its forward and prospective PE of 10-12x as undemanding coupled with yields of 3-4% and consensus 1 year target price of $2 implies a potential return of 30%. We maintain an Accumulate rating on Centurion Corp Ltd. |
| MAYBANK SECURITIES | MAYBANK SECURITIES |
|
Frencken Group Ltd (FRKN SP) Building a war chest for growth
War chest for both organic and inorganic expansion Frencken has completed a SGD100m placement, which garnered strong support from institutional, accredited and other investors. The proceeds are earmarked for both organic and inorganic expansion to add new growth catalysts. We believe that management is preparing a war chest for the multi-year growth that lies ahead, especially with its European and South East Asian (SEA) customers in the semi-con space. Maintain BUY with a lower TP of SGD3.32 from SGD3.70 on 22.5x FY27E P/E after accounting for dilution of the placement.
|
Singapore Living Sector More expansion on the way
New purchase by CENT; Coliwoo’s steady occupancy On 8 Sep’26, CENT agreed to acquire a Malaysian worker accommodation asset in Pasir Gudang, Johor, comprising two adjoining parcels, for RM214.5m (or SGD67.2m). We leave our forecasts unchanged for now, pending completion of the deal - subject to approvals from the State Authority of Johor and satisfactory due diligence by CENT. Meanwhile, Coliwoo reported an average occupancy rate of 93.7% for its portfolio (3,568 rooms with 1,021 under renovation) in its 3QFY26 update. Excluding the ramp-up effects of Coliwoo Midtown (almost 90% in Jul’26), the average occupancy rate for the portfolio stood at a robust 96% during the quarter. We retain BUYs on both CENT and Coliwoo.
|
