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CGS INTERNATIONAL |
UOB KAYHIAN |
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Marco Polo Marine Still an undervalued growth play
■ Key positives from MPM’s analyst briefing include the return of previously deferred repair volumes and addition of two more new vessels to its fleet. ■ MPM continues to tender for newbuild orders, but we think these may be clinched only in 2027F, amid delays in customers’ investment decisions. ■ That said, we continue to like MPM for its c.25% net profit growth over FY26- 27F and attractive 12x FY27F P/E. Reiterate Add, with an unchanged TP.
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Pan-United Corporation (PAN SP) 1H26: Leveraging Market Leadership to Capture Industry Growth
Highlights • Pan-United’s 1H26 revenue and earnings beat expectations by 6% and 4%, driven by strong RMC volume growth and better operational efficiencies. • The company declared a higher interim dividend of 1.5 S cents (+50% yoy), implying a higher total dividend payout for 2026 with a payout ratio of 60%. • Maintain BUY with a 32% higher target price of S$1.88 (S$1.42 previously), pegged to an unchanged 17x 2027F PE.
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| UOB KAYHIAN | CGS INTERNATIONAL |
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Public Bank (PBK MK) 2Q26: Capital Management Upside Priced In; Downgrade To HOLD
Highlights • 2Q26 earnings were marginally below expectations due to higher-thanexpected credit costs. • We downgrade the stock to HOLD, with a lower target price of RM5.54 (1.74x 2027F P/B; ROE: 13.1%) from RM5.65 following our earnings revisions. Given its strong share price performance (+15% ytd vs +3% for the sector), making it the sector’s top performer, we see limited near-term upside and take the opportunity to downgrade our recommendation. • Even factoring in potential special dividends of up to RM3.5b, subject to BNM approval, the stock’s dividend yield remains broadly in line with peers. As such, we believe the current valuation adequately reflects its capital return prospects, which have been the key catalyst for its share price performance.
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PDD Holdings Resilient 2Q26 operating performance
■ PDD’s revenue increased 8.1% yoy to Rmb112.4bn in 2Q26, slightly below our estimate, due to slower transaction services revenue growth of 13.3% (1Q26: 19.9%). ■ Non-GAAP net profit fell 13% to Rmb28.5bn in 2Q26, above our expectation of Rmb26.4bn, mainly due to better GPM and investment gain. ■ In 3Q26F, we now expect revenue to rise 7.6% yoy to Rmb116.5bn, and non-GAAP net profit to jump 1,167.7% yoy to Rmb26.0bn, due to better expense control. ■ We retain our Add call with a slightly higher DCF-based TP of US$114.0 (TG: 5%)
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| LIM & TAN | LIM & TAN |
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SingPost ($0.34, up 1 cent) reported 1QFY26/27 results with revenue broadly stable at S$93.4mn, down 0.9% YoY, while operating profit rose 55.2% YoY to S$4.1mn as cost reductions more than offset the weaker top line. Operating expenses declined 2.4% YoY to S$89.3mn, mainly due to lower labour-related costs and continued efforts to streamline operations. Operating margin consequently improved to 4.4% from 2.8% a year ago. The operating environment remained challenging, with continued weakness in traditional mail and international deliveries. Within Logistics & Letters, domestic mail volume declined 16.2% YoY to 67.3mn items, although the postage increase implemented in January 2026 helped cushion the revenue impact. This was partly offset by strong growth in domestic parcels, where volume increased 36.5% YoY to 7.1mn items, reflecting SingPost’s continued push to gain market share in local parcel delivery Singpost’s market cap stands at S$765.8mln and currently trades at 26.2x forward PE and 0.7x PB, with a dividend yield of 0.4%. Consensus target price stands at S$0.35, representing 2.9% upside from current share price. We maintain a HOLD recommendation on Singpost given that core yield is low and growth remains unexciting for now.
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LHN Limited (S$0.565, up 0.5 cts) is pleased to provide shareholders with a voluntary update on its operational performance for the third quarter ended 30 June 2026 (“3QFY2026”). The Group sustained a resilient performance across its business segments in the third quarter of the financial year ending 30 September 2026 (“FY2026”). LHN’s market cap stands at $246mln and currently trades at 9.4x forward PE and 0.8x PB, with a dividend yield of 5.3%. Consensus target price stands at S$0.71, representing 26.8% upside from current share price. Occupancy rates remain healthy and backed by robust demand across its various portfolios. LHN continues to advance its asset-light strategy through capital recycling transactions, recycling these proceeds to grow total assets under management. We maintain an “Accumulate” rating on LHN. |
