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CGS INTERNATIONAL |
LIM & TAN |
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Ever Glory United Holdings Steady execution while awaiting 2H26F wins
■ We expect c.S$10m of 1H26F core profit, with upside risks to our 16% FY26F GPM as execution of higher-margin contracts won in 2025 kicks in ■ Awaiting c.S$400m of 2H26F tender wins to replenish its order book towards S$1bn by end-FY26F; successful bids could be near-term catalysts. ■ Reiterate Add with S$0.90 TP, still based on 15x FY27F P/E. Potential SEHK dual listing would not be an immediate re-rating catalyst, in our view.
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Mr Yong Jiunn Run, Chief Executive Officer of Beng Kuang Marine Limited, said: “The first half saw ASOM convert a meaningful portion of its West Africa lifecycle mandates into formal purchase orders, including two tankservices frameworks supporting multiple maintenance cycles. Together with the project order books at NEI and IOE, the three businesses carried approximately S$70.7 million of contracted work remaining at 30 June 2026. We remain focused on disciplined execution and the continued conversion of opportunities across our offshore lifecycle and engineering businesses.” BKM’s market cap stands at S$136.5mln and currently trades at 11.4x/7.6x FY26F PE /FY27F PE and is also now below CEO’s Yong’s latest purchase cost of $0.48. Consensus target price stands at $0.72, representing 56.5% upside to current share price. We continue to recommend BUY following the acquisition of ASOM, which is expected to drive a significant uplift in earnings as the business becomes fully consolidated in FY27. |
| LIM & TAN | SAC CAPITAL |
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Reflecting its strong financial position and the gains realised during the year, the Board proposed a final ordinary dividend of 4.0 cents and a special dividend of 4.5 cents per share, bringing the total FY2026 dividend to 10.0 cents per share, up from 7.5 cents in FY2025. The successful listing of UI Boustead REIT represents a strategic milestone for the Group. Beyond crystallising the value of its industrial property portfolio, Boustead retains a significant unitholding in the REIT, enabling it to receive recurring dividend income while preserving a capital recycling platform for future property developments and potential divestments into the REIT. Boustead Singapore’s market cap stands at S$1bln and currently trades at 8x forward PE and 1.3x PB with a dividend yield of 2.7% (ex. special div). Consensus target price stands at S$2.67, representing 29% upside from current share price. Given cheap valuation and strong fundamentals, we maintain an Accumulate on Boustead Singapore.
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Aspial Lifestyle’s stellar financial performance in FY25 and 1QFY26 set to continue. The Group experienced record revenue and profit growth in FY25. The Group’s FY25 net profit surged 142.4% YoY to S$84.4 million and FY25 revenue increased 41.3% YoY to S$830.1 million. Based on preliminary business updates for the first quarter of 2026 (1Q2026), the Group reported an estimated 140% YoY surge in profit before tax to S$40 million, alongside a 48% jump in revenue to S$247 million. Driven by sustained consumer demand across its portfolio of brands and aggressive expansion in Malaysia, Aspial Lifestyle’s revenue forecast is expected to increase 22.7% YoY to S$1018.3 million in FY26 and 15.5% YoY to S$1176.1 million in FY27 and we expect the Group’s net profit to increase 31.7% YoY to S$111.1 million in FY26 and 22.6% YoY to S$136.1 million in FY27.
Dividend. The final dividend of 0.80 Singapore cents and interim dividend of 0.40 Singapore cents per share in FY25 represents a payout ratio of about 27.6% of FY25 net profit attributable to shareholders. This translates to a dividend yield of 3.4%. As we expect growth in the coming years, we have forecast dividend payout to be 35% and this translates to a very attractive above the market yield of 5.4% in FY26 and 6.5% in FY27.
Potential risks include (i) volatility in gold prices, a severe correction in spot prices would exert significant downward pressure on the balance sheet. In a falling price environment, the Loan-to-Value (LTV) ratios of existing, active pledges deteriorate rapidly. Customers are incentivized to abandon their collateral if the market value drops below the loan principal and accrued interest redemption cost; (ii) funding and refinancing sensitivity, the business is structurally balance-sheet intensive so any adverse tightening in credit availability or cost of funds can compress spreads and constrain growth; (iii) regulatory and execution risk and (iv) foreign exchange risk.
Investment recommendation. We initiate coverage on Aspial Lifestyle with a BUY rating and a target price of S$0.50. Our valuation is based on Aspial Lifestyle’s FY26F EPS of S$0.0548, applied to a blended mean PER of 9.0x derived from its Singapore and Malaysia peers. This implies a potential upside of approximately 40.8% from current levels.
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| DBS RESEARCH | |
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ESR REIT Strengthening portfolio quality through capital recycling
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