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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Top Glove Corporation 1Q26 results subdued due to weaker US$
■ 1QFY8/26 results were in line with our and Bloomberg consensus’ estimates, premised on decent sales volume growth and currency headwinds. ■ Management guided for potential recommissioning of 4 glove factories to fulfill recent order wins in Asia, amid possible delays in production rollout. ■ At CY27F P/E of 15.1x (vs. domestic rubber gloves peers’ 16.4x), valuations are supportive as we price in full recovery in FY28F, ahead of peers.
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SCB X Remain cautious on non-bank businesses
■ Net profit from the commercial banking business will form 92-95% of SCB’s total consolidated net profit over the next three years, in our view. ■ Our worst-case scenario suggests dividend yield declining to 7.0-7.3% in 2026F-27F, still significantly higher than the Thai equity market’s 4%. ■ Reiterate Add with a lower TP of THB150. SCB is one of our sector top picks.
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LIM & TAN |
MAYBANK KIM ENG |
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Acrophyte Hospitality Trust / ACRO-HT (US$0.255, unchanged) has on 16 December 2025 (U.S. Time) entered into a conditional purchase and sale agreement (the “PSA”) with Shivam Patel (the “Purchaser”), pursuant to which the Vendor has agreed to sell to the Purchaser, Hyatt Place Memphis Primacy Parkway (“HPMPP”, the “Hotel” or the “Property”) (the “Proposed Sale”), for a consideration of US$7.75 million (the “Sale Consideration”), subject to closing adjustments in accordance with the PSA. Acrophyte Hospitality Trust’s market cap stands at US$148mln and trades at 0.4x P/B with an annualized dividend yield of 3.4%. While the divestment of Hyatt Place Memphis Primacy Parkway will be done at an 8.8% discount to valuation, the sale will reduce exposure to the non-core underperforming asset with proceeds used for the existing portfolio. ACRO-HT continues to see headwinds from the softening of overall U.S. lodging demand, and challenges with rising operating costs including labour.
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Gamuda (GAM MK) Early Christmas gift
Maintain BUY and MYR5.79 SOTP-TP After nearly 4 months of bagging MYR1.0b job win for FY26E from the Marinus Link Project in Australia. This win brings FYTD job wins to MYR5.3b or 21% of our FY26E forecast. Current orderbook stands at MYR37.9b. GAM is optimistic of bagging a couple more job wins over the next 2 weeks and close CY25 with its orderbook at MYR40b-MYR45b. We maintain our earnings estimate and SOTP-TP of MYR5.79.
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