ANALYSTS SAY: Buy, Sell, Hold (18 Sept)

CGS INTERNATIONAL

Venture Corporation

We still expect an earnings recovery

■ We expect Venture Corporation (Venture) to provide its 3Q26F business update by mid-Nov 2026.

■ In our view, demand from customers is turning incrementally positive barring a deterioration in economic conditions in the US.

■ We lower our valuation to 20.0x FY27F P/E, 2 s.d. above its 20-year average P/E given the uncertain global macroeconomic outlook. Retain Add.

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EGP Energy Corporation (EGX SP)

Singapore’s T&D EPC Champion With Strong Orderbook Visibility

Highlights

• EGP is Singapore’s leading independent T&D EPC specialist with over 90 completed projects, 7.5x orderbook visibility (S$296.2m) and a 30-year track record backed by seasoned leadership and a strong regulatory moat.

• We expect its robust orderbook to drive a three-year earnings CAGR of 18% over 2025-28, supported by its key customer’s capex.

• Initiate coverage with BUY and a target price of S$0.92, pegged to 13.8x 2027F PE, in line with the Southeast Asia EPCC peer average, with re-rating potential from strong contract wins and M&S growth.

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Binastra Corporation Group (BNASTRA MK)

2QFY27: Yielding Impressively

Highlights

• Above expectations (53% of our and consensus expectations), as we anticipate a stronger earnings momentum for 2HFY27. 2QFY27 revenue grew 66% yoy and core profit rose 78% yoy.

• Maintain BUY with a higher target price of RM3.05 (from RM2.68), rolled over to FY28 valuations. Binastra offers a resilient dividend yield of 3.4-4.2% in FY27-29 (based on 50% payout ratio assumptions).

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Reclaims Global’s 1HFY27 results came slightly above our expectations with revenue and profits at 66%/53% of our full year forecast. Revenue rose 53% yoy to S$33.3mln from stronger market demand across all three segments in
Excavation Services, Logistics & Leasing, and Recycling.

Gross profit rose 21% to S$12.5mln with a 10.0 pp decline in
margins due to higher cost of materials and energy prices.
Coupled with a smaller increase in employee expenses, net
profit for 1HFY27 came in at S$3.8mln, an increase of 53% yoy.

Following the completion of a 1-for-1 bonus issue in Mar’26,
Reclaims maintained interim dividends of 0.25 S cts (20%
payout ratio). At current prices, Reclaims trades at attractive
valuations of 8.9x forward P/E, 1.3x P/B with a 6.0% dividend
yield.

CHINA TELECOM

• 1H26 net profit fell 14.9% y/y to RMB19.6bn, 8% below consensus. Management stated earnings would have maintained favourable growth excluding the new VAT classification

• Cut FY26-28F earnings by 6.1%/6.7%/7.9% to reflect the VAT adjustment and softer traditional business growth, implying net profit growth of -9.6%/+5.6%/+7.1%

• Maintain BUY with a lower TP of HKD5.7 (prev: HKD5.9), based on a roll-forward to blended FY26/27F earnings, with an unchanged PE multiple of c.15x. The stock now offers attractive c.7% dividend yield

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