ANALYSTS SAY: Buy, Sell, Hold (26 Aug)

CGS INTERNATIONAL

Ping An Insurance

Addressing investors' questions post-1H26 results

■ We address some investor queries post-1H26 results, including DPS growth (1H26: +3.2% yoy), OPAT per share (1H26: +9% yoy) and NBV, as well as outlook.

■ While Ping An broadly links OPAT and DPS, the dividend payout ratio based on OPAT has declined slightly since FY23, with DPS sustainability also a consideration.

■ 1H26 OPAT growth of 8% yoy was largely driven by Asset Management (AM), with 1H26 OPAT growth ex-AM flat yoy. 1H26 Bank OPAT and CSM returned to growth.

■ A weak 2H26 outlook for bancassurance (28% of 1H26 NBV) leads to our forecast of 11% FY26F NBV growth, with 3Q26F at -27% yoy and 4Q26F at +441% yoy (Fig 9).

■ Reiterate Add, TP unchanged at HK$78. Ping An remains one of our top picks in the domestic insurance sector.

Read More ...

Huationg Global (HUAGL SP)

1H26: Margin Pressure Expected To Ease; Recovery Ahead

Highlights

• Huationg’s 1H26 revenue of S$198m (+64% yoy) exceeded our expectation by 10%, driven by a 58% surge in civil engineering revenue.

• 1H26 earnings of S$8.6m were below expectations, largely due to higher diesel/fuel costs. Going forward, 2H26 earnings and margins are expected to recover from fuel cost normalisation and re-imbursement.

• Maintain BUY with a lower target price of S$0.88, pegged to a lower 10x 2026F PE. Huationg trades at 6.3x 2026F PE, a 37% discount to peers.

Read More ...

Lum Chang Creations

Margin gains, tender momentum ahead

■ 2HFY6/26 core PATMI rose 49% yoy to S$11.3m, driven by stronger GPM (2HFY26: 38%, +19% pts yoy) and project completion mix.

■ Public tender pipeline remains healthy, based on our checks on the GEBIZ portal, which we believe would support FY27F order wins.

■ Reiterate Add with a S$0.64 TP, based on 17x FY27F P/E. Re-rating catalysts: stronger Malaysia contributions, improved order wins momentum.

Read More ...

Zetrix AI (ZETRIX MK)

2Q26: Within expectations

Maintain BUY with a lower TP of MYR1.72

Zetrix’s 1H26 core net profit was within both our/consensus expectations. Revenue grew by +34% YoY driven by resilient contributions from its AI and blockchain application service fees. 2Q26 saw an elevated tax expense and amortisation of development costs which led to a -4% QoQ decline in core net profit. An interim dividend of 0.25sen was declared. We make no changes to our earnings estimates. Our TP is lowered to MYR1.72 based on an updated 13x P/E multiple to average FY26/27E EPS. Maintain BUY.

Read More ...

  SINGAPORE AIRLINES

• 1QFY27 operating profit missed expectations, as record passenger and cargo revenue was more than offset by a sharp rise in jet fuel costs following the Middle East conflict.

• Air India's operational turnaround continues to progress, although losses are likely to widen this year amid higher fuel costs, Pakistan airspace closures and FX headwinds.

• We expect earnings pressure to ease sequentially on resilient demand, firmer yields and eventual jet fuel price normalisation, supported by disciplined industry pricing, healthy cargo demand and continued transit traffic tailwinds.

• Maintain HOLD with a higher TP of SGD7.70 (from SGD6.50) as we raise our valuation peg to 5.0x forward EV/EBITDA (from 4.5x) on sector multiple expansion, despite cutting FY27/28F EBIT by 13%/4% on higher jet fuel costs.

Read more...