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CGS INTERNATIONAL |
UOB KAYHIAN |
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Tai Sin Electric Ltd Provisions clouded underlying strength
■ FY6/26 core PATMI rose 27% yoy to c.S$32.8m; healthy C&W and RES demand should support continued FY27F earnings growth. ■ While the lack of clarity on tariffs has led to elevated copper prices, we expect copper prices to ease gradually given high inventory levels globally. ■ Reiterate Add with higher TP of S$0.80 (from S$0.74), based on 10x FY28F P/E. Stable DPS of 2.4 Scts p.a. implies 4.5% FY27F yield.
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Soon Hock Enterprise (SHOCK SP) 1H26: Robust Development Pipeline Supports Growth
Highlights • SHE reported 1H26 PATMI of S$19.3m, missing our expectation due to higher-than-expected expenses, forming 41% of our full-year forecast. • Skye@Tuas remains the key near-term earnings driver, with full TOP expected by 1H27, supporting earnings through 2027. • Maintain BUY with a lower target price of S$0.66, pegged to a lower 1.1x 2026F P/B.
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| CGS INTERNATIONAL | UOB KAYHIAN |
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Genting Plantations Earnings beat underpins upgrade
■ We upgrade GENP to Add and lift TP to RM7.00 on stronger-than-expected FFB yields and downstream margins; 10 sen DPS declared (1.8% yield). ■ 1H26 earnings beat both our and consensus expectations; plantation momentum intact into 2H26F but downstream margins unlikely to sustain. ■ Property segment revenue to continue to grow, backed by new launches, and improving premium outlets performance.
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Telecommunications
2Q26: Broadly In Line, Positive Price Hike Spillover In 3Q26
Highlights
• 2Q26 sector earnings came in within expectations, with Maxis and TIME delivering strong earnings. This was partly offset by Axiata’s weak earnings due to lower ringgit translated earnings and high withholding tax expense
. • The quarter saw: a) a 2% yoy service revenue growth, driven by marketwide ARPU uplift; b) cost discipline; c) encouraging enterprise demand – especially for TM; and d) commendable home fibre growth.
• Maintain MARKET WEIGHT. Catalysts include Axiata’s infrastructure asset monetisation and CelcomDigi’s synergistic savings by 2027. Our sector top picks are Maxis and CelcomDigi.
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| LIM & TAN | LIM & TAN |
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The board of directors (the “Board”) of Reclaims Global Limited ($0.205, unchanged) wishes to inform shareholders of the Company that, based on a preliminary review of the Group’s unaudited consolidated financial results for the financial period ended 31 July 2026 (“1H2027”), the Group expects to report a significant improvement in net profit for 1H2027, as compared to the financial period ended 31 July 2025. Reclaims remains a beneficiary of the construction upcycle in Singapore over the next few years. Industry prospects remain favourable through 2030 with mega projects including Changi T5, the Cross Island Line, and a S$100B coastal protection plan. Reclaims operates at the early stages of the construction process, implying demand for its services are earlier rather than later. Institutional interest in Reclaims have also grown in recent months with 63.2mln new and vendor shares transacted between S$0.195 - S$0.205/share (bonus-adjusted). While industry outlook remains favourable, we trim our FY27F earnings forecast by 3.9% to account for potential margin pressures from rising fuel costs due to the geopolitical conflict in the Middle East. Maintain BUY with a lower target price of S$0.29/share (Previous TP: S$0.30), pegged to an unchanged 12.2x FY27F P/E (peers average).
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One of Hong Kong’s biggest landlords is in talks to enter Japan’s resurgent property market as part of parent Jardine Matheson Holdings Ltd.’s pivot toward becoming an investment firm, people familiar with the matter said. Hongkong Land Holdings Ltd / HKL is targeting deals over $1 billion for mixed-use complexes with high-end office, retail and hospitality spaces in prime Tokyo locations, the people said, asking not to be identified discussing private matters. But the company has struggled to secure the right property or a suitable co-investment partner at what remains a challenging time in Japan’s investment cycle, they said.
Valuations and Recommendations HKL remains amongst our top 2026 Alpha pick given its strong track record of monetizing matured assets and re-investing into prime and grade A assets that can provide a recurring income base. We see the successful monetization and re-investments efforts as key to its sustainable DPU and EPS growth, targeting to double both DPU and EPS over the next 5-10 years. Trading at undemanding 0.6x price to book, successful efforts to monetize assets at or above book values will help to close its 40% discount to its NAV while its 3-4% dividend yield compensates investors to wait for management to execute its growth plans. Consensus target price of US$10.40 implies a potential upside of slightly more than 20%. We maintain an Accumulate rating on HKL. |
