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CGS INTERNATIONAL |
UOB KAYHIAN |
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Yangzijiang Shipbuilding Bigger ships, bigger profits
■ Xinfu yard’s large vessel deliveries likely drove 1H26F PATMI to c.Rmb5bn (+19% yoy), with 35% shipbuilding GM supported by higher ASPs. ■ We raise FY26F-28F net profit estimates by 3-8%, mainly on stronger revenue recognition as well as gradual capacity addition at Hongyuan yard. ■ Reiterate Add, with a higher TP of S$5.10. YZJSB offers an attractive riskreward at 8x fwd P/E and a 6.6% yield within the capital goods sector.
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Riverstone Holdings (RSTON SP) ASP Normalisation And Shareholder Returns Remain Key Focus
Highlights • We hosted Riverstone recently, where management highlighted its industry development and the company’s outlook to our institutional clients. • Normalisation of ASPs after the Iran war and an above-100% payout ratio should support earnings and shareholder returns. • Maintain BUY with an unchanged target price of S$1.10, pegged to 25x 2027F PE. Riverstone currently trades at 19x 2027F PE vs peers’ average of 22x.
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| LIM & TAN | LIM & TAN |
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Bloomberg reported that Super Micro Computer Inc. shares rose about 15% in extended trading after the server maker issued preliminary results saying its backlog hit a record on new orders in the quarter of more than $60 billion. Sales have surged for Super Micro’s servers fitted with Nvidia Corp. chips for artificial intelligence workloads. But the company has been working to get costs under control while vying with rivals to rapidly get those machines into customers’ hands and win business in a growing AI market. Super Micro said Tuesday in a statement that gross margins in the quarter ended June 30 are estimated to be in the range of 15% to 17%, which is better-than-forecast and a sign the company is making progress selling more profitable products. Innotek Ltd ($0.555, up 0.01) counts on both Super Micro as well as Nvidia as key customers. We believe that 1H26 would be challenging for Innotek due to start-up costs as well as weakness from Super Micro, paving the way for the stronger 2H26 as the company ramps up on the Vera Rubin project for Nvidia. This will likely see possible continued weakness in its share price in the near term until its weak 1H26 is out of the way. We maintain a HOLD call on Innotek for now given its 20x PE and 3.6% yield.
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Hutchison Port Holding Trust (US$0.189, down 0.3 cents) delivered a strong first half of 2026, with revenue and other income rising 9.5% YoY to HK$6.19 billion, supported primarily by stronger performance at its Yantian International Container Terminals (YICT) despite weaker throughput in Hong Kong. While Hong Kong operations continued to face headwinds from lower transshipment volumes, YICT recorded a robust 10.0% increase in container throughput, driven by higher laden exports, inbound empty containers and transshipment cargoes. Overall, the group’s earnings growth was further boosted by one-off gains and lower financing costs. HPH Trust’s market cap stands at US$1.6bln and currently trades at 17.2x forward PE and 0.5x PB with a dividend yield of 6.7%. Consensus target price stands at US$0.23, representing 21.7% upside potential. |
| MAYBANK SECURITIES | DBS GROUP RESEARCH |
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Grand Banks Yachts (GBY SP) Hidden gem
Strong brand equity at relatively low valuation Grand Banks Yachts (GBY) is a well-known manufacturer of luxury recreational motor yachts for about 70 years. Investments over the past year such as the Newport acquisition and the expanded Pasir Gudang yard will allow the Group to capitalise on the long-term growth potential of global luxury yacht market. Based on Bloomberg estimates, GBY trades at about 7.45x FY27E P/E and 3.85x EV/EBITDA, a steep discount versus its bigger peers (such as Ferretti, Sanlorenzo, Beneteau) of 11.2x and 5.3x, respectively, making it an attractive privatisation candidate especially given the group’s relatively small mkt cap and poor liquidity.
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Singapore Banks
2Q26 preview: Earnings momentum intact, NIM pressure continues • Greater q/q NIM resilience but NIM downtrend is not yet over; bias towards higher rates should support sequential improvement • Apr-May system loan growth surprised positively (+2.2%); we see 2-3% q/q growth for 2Q26, a key earnings support • 2Q26 macroeconomic conditions supportive of noninterest income growth amidst strong equity markets • Still prefer Singapore banks for robust dividend yields and strong investor sentiment, watchful on UOB’s asset quality
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