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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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All-Link Air & Sea Limited Picking up wind
■ We are positive on ALAS's 2H26F earnings growth, supported by further volume ramp-up of existing customers and seasonally peak demand in 4Q. ■ ALAS sees structural demand for logistics services across ASEAN as a key driver for its planned expansion into Indonesia, Vietnam and Thailand. ■ Maintain Add and TP of S$0.92; upside catalysts include faster regional execution and dividend payout ratio above its IPO commitment of 30%
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AIA Group Shifting to a 'clean' base
■ We forecast 3Q26F VONB qoq from a relatively 'clean' 2Q26 base, avoiding the high 3Q25 yoy base for HK/Mainland China. We also use a multi-year CAGR approach. ■ This results in HK/Mainland China/group VONB growth of -6%/+9%/+5% yoy for 3Q26F and +12%/+38%/+18% yoy for 4Q26F. ■ We recommend looking through quarterly volatility, as Bloomberg consensus' FY26F VONB growth appears sufficiently conservative at 11.5% yoy (vs. our revised 11.9%). ■ Record-high US-China Treasury yield spreads and continued strong growth in China onshore foreign currency deposits should support MCV insurance demand. ■ We retain Add rating and GGM-based TP of HK$117. AIA remains a top sector pick.
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| UOB KAYHIAN | UOB KAYHIAN |
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Plantation Firmer 2027 CPO Lifts Upstream Earnings
Highlights • We raise our 2027 CPO price assumption to RM4,700/tonne from RM4,400, as El Niño-induced dryness should strain production while Indonesia’s B50 mandate would limit the country’s exportable supply. • We increase our 2027 net profit forecasts for Bumitama (BAL) by 9.6% and 12.1% for First Resources (FR). Indonesian producers keep less of each ringgit of price upside than Malaysian peers, as the export levy rises with the reference price. • We raise our target prices for BAL to S$2.54 (from S$2.15) and FR to S$5.09 (from S$4.57), and maintain BUY on both. BAL remains our top pick as it has the purest upstream exposure, with 21% upside to its share price. • Maintain OVERWEIGHT on the sector.
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IT Hardware Company Visit Takeaways From Phison And Winbond
Highlights • We visited Phison, a fabless NAND controller designer and module maker, and Winbond, a specialty DRAM, NOR and SLC NAND supplier, during our Taiwan trip last week. • Phison is filling about 30% of orders, sees no NAND price decline within five years, and puts memory at 50-60% of a device bill of materials. • Winbond reported that 3Q26 DRAM contract prices were up 50-60% qoq, expecting 2027 shortages to exceed that of 2026, and will mass produce its CUBE custom stacked memory from 2027.
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| DBS VICKERS | |
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COMFORTDELGRO
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