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UOB KAYHIAN |
UOB KAYHIAN |
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Lum Chang Creations (LUCC SP) FY26: Strong Margin Expansion; Top-line Weakness Due To Timing
Highlights • LCC reported FY26 earnings of S$22.3m (+72% yoy), slightly below our estimate of 97% due to a project timing and mix impacting top-line. • LCC declared a final dividend of 1.0 S cent/share, bringing the total dividend payout to about 2.24 S cents/share over an enlarged share base. • Maintain BUY with a 10% lower target price of S$0.46 (S$0.51 previously), pegged to an unchanged 13x 2027F PE.
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BYD Company (1211 HK) 2Q26: Core Earnings Surge 141% yoy On Margin Beat; Raise Target Price To HK$150.00
Highlights • 2Q26 adjusted net profit beat estimates at Rmb8,226m (+51.5% yoy/+98.3% qoq). Stripping out forex gain/(loss), core net profit surged 141% yoy and 80% qoq to Rmb10.6b in 2Q26. The earnings beat stemmed from margins. • BYD’s FCF resumed positive at Rmb11.855b in 2Q26, as operating cash flow surged 48.6% yoy and capex plummeted 47.6%. • Raise our 2026-28 net profit forecasts by 5%/14%/15% on higher margins. Maintain BUY and lift target price from HK$135.00 to HK$150.00.
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| CGS INTERNATIONAL | MAYBANK SECURITIES |
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ISOTeam Ltd Multiple margin expansion drivers
■ FY6/26 core PATMI of S$4.9m (+100% yoy) missed, at 89% of our FY6/26F, on lower-than-forecasted revenue due to slower project commencement. ■ Despite higher input costs, FY26 core NPM expanded 2.1% pts to 4.6%, due to cost savings from housing workers on its own premise. ■ We forecast NPM of 6% in FY27F, assuming full-year savings on 400 beds at 68 Loyang Way, and 7% in FY28F, on use of façade painting drones. ■ We reiterate Add for its recurring-business model and profit/margin recovery.
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Singapore Telecommunications (ST SP) FY30 roadmap; More upside to unlock
FY30 roadmap looks credible, with upside optionality Investor Day materially improved visibility on Singtel’s next earnings leg. Management outlined a roadmap for OpCo EBIT to reach SGD2.1–2.5b by FY30, from approximately SGD1.5b currently, driven by an Optus recovery, NCS, and Digital InfraCo. Importantly, the bridge does not appear demanding: Singapore contributes virtually no incremental EBIT, while Digital InfraCo largely reflects secured pipelines rather than its ultimate potential. We see room to outperform these aspirations. The only nearterm disappointment was the unchanged FY27 guidance, although a potential upgrade could be revisited with the 1HFY27 results in November
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| LIM & TAN | LIM & TAN |
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Grand Banks Yachts / GBY ($0.73, unchanged) reported FY26 results, with revenue rising 6.7% YoY to a record S$173.2mln, driven by accelerated construction and deliveries of new boats. However, NPAT declined 26.5% YoY to S$13.4mln as the Group continued to invest heavily in manufacturing capacity, sales, marketing and its broader customer experience platform. GBY proposed a final dividend of 1.0 Singapore cent per share, bringing total FY26 dividends to 1.5 cents, unchanged from FY25. GBY’s market cap stands at S$136.2mln and currently trades at 7.4x forward PE and 1.2x PB, with a dividend yield of 2%. GBY’s FY26 results of $13.4mln came in 11.7% better than our forecast and we continue to be encouraged by their positive outlook statement. As it evolved into a global luxury powerhouse, we think FY27 would be much stronger after a gestational FY26. As such, we continue to recommend a BUY on GBY.
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Centurion Corporation Limited ($1.56, down 0.02), which owns, develops and manages specialised living sector accommodation assets, today announced that it has been awarded the tender by JTC Corporation (“JTC”) for the development of a purpose-built worker accommodation at Lok Yang Way, Singapore. The site covers about 28,441 sqm and has a gross plot ratio of 2.5, allowing for a development with a capacity of 5,000 beds. It is held on a 30-year lease. At its last traded price of $1.56, Centurion Corp is capitalized at $1.3bln and trades at 12x forward PE, 1.1x book and 3% dividend yield. Based on consensus 1 year target price of $2, potential upside is around 28%. We maintain an Accumulate rating on Centurion Corp Ltd given undemanding valuations and steady growth going forward. |
