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UOB KAYHIAN |
UOB KAYHIAN |
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Delfi (DELFI SP) Starting To Look Sweet On Cocoa Price Relief; Raise Target Price By 50%
Highlights • Cocoa prices have fallen over 60% yoy from 2024-25 peaks, signalling a reversal of cost pressures that drove 2025 margin compression. • While hedging and forex remain near-term constraints, easing input costs and operating leverage should support recovery into 2026-27. • Maintain BUY with a 50% higher target price of S$1.68.
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Alibaba Group (9988 HK) 4QFY26 Results Preview: Soft CMR Growth Due To Change In Accounting Treatment; Sanguine AI+Cloud Outlook
Highlights • We expect 4QFY26 results to show soft revenue growth with narrowing losses in quick commerce partially offset by softer core commerce growth amid weaker online retail performance in March. Cloud growth remains solid and broadly in line with expectations. However, overall profitability may be weighed down by higher-than-expected losses in the “All Others” segment, driven by continued investments in AI and marketing effort. • Maintain BUY with an unchanged target price of HK$192.00 (US$196.00).
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MAYBANK SECURITIES |
LIM & TAN |
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Q&M Dental Group (QNM SP) Go on a buying spree
Execution of M&As is key to re-rating; Raising TP Q&M Dental (QNM) recently embarked on an ambitious growth strategy through M&As across Australia, Thailand, Singapore, and China. Notably, the Group’s expansion drive is supported by enhanced capital flexibility and a strong desire to quickly diversify its footprint beyond the traditional markets of Singapore and Malaysia. Based on a 50:50 probability outcome, we derive our TP of SGD0.64 (up from SGD0.43) but maintain a HOLD on QNM in view of a relatively balanced risk-reward ratio.
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Lum Chang Creations / LCC (S$0.87, up 6 cts) delivered strong 1HFY26 results which came in above our expectations. Revenue rose 31% yoy to S$53.5mln from higher project recognition backed by a promising urban revitalisation specialist (URS) industry. Gross profit rose 108% to S$17.9mln with a 12.4 pp uptick in margins as the Group benefited from efficient cost management and economies of scale. Lum Chang Creations is set to benefit from a promising urban revitalisation specialist (URS) industry and healthy projects pipeline. Capitalized at S$274mln, LCC trades at a forward P/E of 11.4x and P/B of 8.1x, with a 5.7% dividend yield. LCC remains one of our top picks in our recent Apr’26 Client Portfolio. In view of improving margins and strong revenue visibility, we raise our FY26F/FY27F earnings forecast by 34%/36% respectively. Maintain BUY with a higher target price of S$1.04/share (Previous TP: S$0.70), pegged to 12.9x blended FY26F/27F P/E (peers average). |
| LIM & TAN | |
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We believe Kingsmen’s strong orderbooks of $151mln would provide solid earnings visibility as they move forward in 2026 and also as they celebrate their 50th anniversary this year, we believe there is also potential for higher dividends to reward shareholders. After having grown their core profit by 76% last year to $13.7mln as the company focuses on better margined projects and also as their IP business and China start-up costs start to moderate and turn around, we believe profitability can continue to climb another 16% in FY2026 to $15.9mln, translating to an undemanding forward PE of 7.5x. Due to their strong cash position of $90mln, its EV/EBITDA is an undemanding 2x only, while dividend yield is more than 5%. Recent insider purchases by both the Chairman and Deputy Chairman plus share buy back program up to a high of 54.5 cents implies that insiders deem the company undervalued. As such we have a BUY recommendation Kingsmen Creative.
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