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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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UMS Integration Ltd A stronger earnings upcycle for FY26-28F
■ We think UMS could report 1Q26F net profit of c.S$12.2m (+24% yoy, +10% qoq) in the week of 10 May 2026. ■ We believe FY26-28F earnings upcycle will be stronger for UMS as AI demand and two customers would drive its growth this round. ■ Reiterate Add, higher S$2.23 TP driven by our earnings upgrades; valuation basis unchanged at 26x FY27F P/E.
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Singapore Airlines Big jump in Mar 2026 PLF to historical highs
■ Reiterate Hold, with a higher TP of S$6.80, still based on CY26F P/BV of 1.35x (+1.5 s.d. from mean since 2001), on the 7% upgrade to FY26F EPS. ■ We raise our FY26F core EPS by 7% on the back of a lower-than-expected Air India loss, as reported by Bloomberg. ■ Our FY26F EBIT forecast of S$2.3bn is unchanged, as we expect higher average pax yields to offset the higher MOPS jet fuel prices for Mar 2026.
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CGS INTERNATIONAL |
UOB KAYHIAN |
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United Overseas Bank Prudent to remain cautious
■ We expect UOB to report 1Q26F net profit of S$1.4bn (-8% yoy, -3% qoq), given NIM compression yoy and normalisation of credit costs. ■ We trim our FY26F-27F EPS by 0.1-0.9% as lower share count from UOB’s share buyback programme mitigate earnings pressure. ■ Reiterate Hold, with a lower GGM-based TP of S$38.70.
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Banking 1Q26 Results Preview: Navigating Treacherous Waters
Highlights • We expect 1Q26 to be characterised by mild NIM compression and growth from wealth management supported by AUM expansion. Review of macroeconomic variable should lead to a top-up of general provisions. • We expect a net profit of S$2,833m for DBS (-2% yoy, +25% qoq) and S$1,793m for OCBC (-5% yoy, +3% qoq). • Maintain OVERWEIGHT. BUY DBS (Target: S$67.55) and OCBC (Target: S$25.30). DBS provides an attractive 2026 dividend yield of 5.6%. We also like OCBC (BUY/Target: S$25.30) for its strategic shift to accelerate growth.
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| UOB KAYHIAN | DBS GROUP RESEARCH |
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Singapore Airlines (SIA SP) Expecting Strong 4QFY26 Earnings, Followed By A Weak 1QFY27 Due To Fuel Price Hit
Highlights • SIA recorded very strong operating data in Mar 26, thanks to the spillover from Middle Eastern carriers whose operations have been affected by war. • We raise our 4QFY26 earnings forecast to S$553m (+30% yoy) to reflect the strong Mar 26 operation data and a substantial fuel hedging gain. • The US-Iran war casts significant uncertainties on SIA’s FY27 earnings, with the sky-rocketed jet fuel prices likely to hit SIA’s earnings in 1QFY27. • Maintain HOLD on SIA with a lower target price of S$6.64.
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Keppel DC Reit 1Q26 Business Updates: Another quarter of strong positive revisions
1Q26 DPU of 2.833 Scts was a strong 13.2% uplift y/y; forms c.27% of our FY26 projections Key positives: i) strong positive rental reversions of +51%, ii) cost of debt improved 20bps to 2.6%, iii) delay in the NetCo bonds redemption will be a positive for KDCREIT, iv) full year contribution from Tokyo DC3 that was acquired in September 2025 What we are watching out for: i) portfolio occupancy rate as it dipped marginally by 20bps q/q, ii) rising utilities cost even though we understand that it will be mostly passed through Maintain BUY with TP of SGD2.60
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