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UOB KAYHIAN |
UOB KAYHIAN |
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Banking 2Q26 Results Round-up: Sustainable Momentum On Rising Affluence And Wealth Creation Within Asia Highlights
• DBS Group Holdings’ (DBS) and Oversea-Chinese Banking Corp’s (OCBC) 2Q26 results beat our expectations. United Overseas Bank’s (UOB) results were slightly above consensus estimates. • DBS and OCBC have outperformed in wealth management, treasury income and asset quality. OCBC has an added boost from insurance. • Maintain OVERWEIGHT. Our top pick is OCBC (BUY/Target: S$33.35) for its strategic shift to accelerate growth. OCBC is more sensitive to growth in wealth management, which accounted for 63% of its fee income. We also like DBS (BUY/Target: S$80.00) for its 2027 dividend yield of 4.6%.
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Yangzijiang Shipbuilding (YZJSGD SP) 1H26: Earnings Beat On Strong Revenue And Margins; Good Earnings Visibility Through 2029
Highlights • YZJ’s 1H26 net profit of Rmb5.37b (+28.4% yoy) beat our expectations, at 55% of our/consensus full-year forecast, driven by stronger-than-projected revenue delivery as well as positive margins surprises in shipbuilding. • Orderbook remains strong, at US$22.4b as of end-1H26; together with good contract pricing levels, this orderbook provides good revenue/earnings visibility through 2029. • Management is confident in meeting its 2026 contract win target of US$4.5b. • Maintain BUY, with a higher target price of S$5.30, based on 9.1x 2028F PE.
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| MAYBANK SECURITIES | CGS INTERNATIONAL |
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United Overseas Bank (UOB SP) More building to do
Strategy execution still early days. Maintain HOLD UOB’s 2Q26 earnings were ahead of MIBG/Street. This was partly supported by non-recurring gains. Operationally, UOB is at a building stage to extract deeper value from their consumer banking franchise. This may take time to gestate and carries execution risks. In the meantime, asset quality and provisioning remains in focus, amidst ongoing pressure from Chinese real estate. We raise TP to SGD47.59, but maintain HOLD. We prefer OCBC for ROE accretion with their New Frontier strategy execution.
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Ever Glory United Holdings Margins shine as order book tops S$1bn
■ 1H26 core earnings (S$14m) beat our and Bloomberg consensus' forecasts on stronger-than-expected GPM; we raise FY26-28F GPM to 18-19%. ■ Order book exceeds S$1bn; YTD wins of c.S$400m form 61% of our FY26F forecast, with further wins expected in 2H26F from robust tender pipeline. ■ Reiterate Add, with a higher TP of S$1.10 (from S$0.90), still based on 15x FY27F P/E, and a higher FY26F payout of 30% (previously: 20%).
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| MAYBANK SECURITIES | |
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JustCo Holdings (JCO SP) Scaling up, margins following
Results in line; expansion on track JustCo’s 1H26 cash EBITDA rose 147% YoY to USD10.6m as margin expanded 6.5ppts to 13.1%, supported by higher revenue per workstation and operating leverage. We retain our forecasts as the group remains on track to expand its network to 78 centres, although the execution and occupancy ramp-up of its 21 committed centres remain key watchpoints. With 1H26 results broadly in line with expectation, we maintain BUY and our TP at SGD1.02 based on 8.5x FY27E EV/cash EBITDA.
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