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UOB KAYHIAN |
UOB KAYHIAN |
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Marco Polo Marine (MPM SP) 1QFY26: Solid Start To FY26 As Offshore Wind Delivers
Highlights • 1QFY26 revenue of S$32.8m (+27% yoy) came in within expectations, while gross margin was better than expected, driven by higher-margin chartering revenue from CSOV and CTV contributions. • The S$198m research vessel contract and two new AHTS vessels are expected to provide earnings uplift from FY27 onwards. • Maintain BUY with a higher target price of S$0.19 after raising earnings.
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Raffles Medical Group (RFMD SP) 2025: Core Earnings In line; Expect Steady Performance While Waiting For Turnaround Of China Hospitals
Highlights • 2025 core net profit of S$67.3m (+2.8% yoy) was in line with our expectations; 2H25 core performance was lacklustre, with mixed results from key divisions. • Management has pushed back the EBITDA breakeven timeline for its China hospital portfolio to 2027 (previously 2H26). • We project a three-year core earnings CAGR of 7.5% for RMG in 2026-28. • Maintain BUY, with an unchanged target price of S$1.25 (rolled over).
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LIM & TAN |
LIM & TAN |
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UOB Group ($38.80, up 0.20) reported an operating profit of S$7.7 billion for the financial year ended 31 December 2025 (FY25), driven by strong fee momentum across our wholesale banking and retail banking businesses. Net profit for FY25 moderated 23% to S$4.7 billion from the previous year, largely due to the pre-emptive general allowances that the Group proactively set aside in the third quarter to strengthen provision coverage amid growing macroeconomic uncertainties. The Board recommends the payment of a final dividend of 71 cents per ordinary share. Together with the interim dividend of 85 cents per ordinary share, the total dividend for FY25 will be S$1.56 per ordinary share, representing a payout ratio of approximately 50%. UOB’s 4Q’25 net profit of $1.41bln missed market expectations by 4-5% due to weaker than expected net interest margins and income, thus we expect some downward revisions in consensus estimates for FY26 to $5.5-5.6bln from $5.9bln, giving a Forward PE of 11.5x. Historical dividend yield is 4% while forward yield is bandied around 3.7%. UOB is currently trading at consensus target price, implying limited upside. We maintain a HOLD on UOB shares.
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APAC Realty (S$0.665, up 2.5 cts) delivered a strong earnings rebound in FY2025, with profit after tax more than tripling year-on-year to S$20.5 million as new private residential sales accelerated across Singapore. At 66.5 cents, APAC Realty is capitalized at $287mln and trades at 14.0x trailing P/E, 1.8x P/B with a 6.1% dividend yield. APAC Realty has delivered resilient results in 2025, driven by a strong surge in new homes sales to 10.8k units (2024: 6.5k units). While private new home sales in 2026 are likely to be higher than 2022-2024, forecasts of 9k-10k units in 2026 are expected to be lower compared to 2025, potentially leading to a slight dip in profits for the year. This will be partially offset by higher EC launches, more commercial sales and entry of another 100+ agents from a competitor in Feb. Supported by an attractive dividend yield of 6.1% and net-cash position, we recommend “Accumulate on Weakness” on APAC Realty. |
| MAYBANK SECURITIES | CGS INTERNATIONAL |
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Malaysia Renewable Energy RE corporate day- BESS emerging as a key theme
Robust pipeline; cautious on cost fluctuations We recently hosted several solar EPCC players and expert speaker from SEDA at our RE corporate day. Overall, project pipeline for utility-scale solar projects remain robust with the upcoming rollout of CRESS and LSS6 projects. However, a further escalation in panel prices could introduce margin compression risks. We remain POSITIVE on the sector, underpinned by the structural upcycle in project deployment aligned with the National Energy Transition Roadmap (NETR) targets. Our top pick remains Solarvest (SOLAR MK, BUY, TP: MYR3.67).
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Meituan Profit warning due to subsidy war
■ Meituan announced a profit warning of FY25F net loss of Rmb23.3bn-Rmb24.3bn, indicating a 4Q25F net loss of Rmb15.1bn-Rmb16.1bn (vs. our forecast: Rmb16.3bn). ■ We forecast Meituan’s instant delivery-related loss to narrow to Rmb14.5bn in 4Q25F (down from Rmb19bn in 3Q25). ■ We expect Meituan to achieve total revenue growth of 4.7% yoy in 4Q25F to Rmb92.6bn, with adjusted net loss of Rmb15bn and qoq lower delivery subsidy. ■ We downgrade to Hold, with a lower DCF-based TP of HK$93.
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