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CGS CIMB |
CGS CIMB |
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Pan-United Corp Ltd Volume growth and favourable project mix
■ FY26F-28F revenue growth supported by higher 2025F institutional & civil engineering construction demand (c.50% of 2025F demand vs. 42% in 2024). ■ Given its strength in institutional and civil engineering projects, we believe PANU is a beneficiary of Singapore’s continued infrastructure upgrading. ■ Reiterate Add on PANU’s strong positioning to capture construction tailwinds.
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BRC Asia Ltd Acquiring Malaysian market share
■ 1HFY9/25 net profit of S$42m (+9% yoy) was 53% of our FY25F estimate. New order book hit a high of S$1.5bn as at 31 Mar 2025 (FY9/24: S$1.4bn). ■ BRC delivered on its M&A strategy with the proposed 55% stake acquisition of Southern Steel Mesh, giving it a c.15% share in the Malaysian market. ■ Reiterate Add; FY26F dividend yield remains attractive at 6.4%, in our view
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CGS CIMB |
UOB KAYHIAN |
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SATS Ltd Embedded resilience to tide through FY26F
■ 4QFY3/25 net profit of S$38.7m (+18.3% yoy) was slightly ahead of our S$34.2m estimate despite lower SoAJV contribution and impairment costs. ■ Management shared that SATS’s cargo tonnage handled has outpaced global cargo demand since 3QFY24, reflecting market share gains. ■ We think SATS’s growing market share will support earnings growth in FY26F even as ongoing trade tensions with US threaten global cargo demand. ■ Reiterate Add with a higher DCF-based (WACC: 12.2%) TP of S$3.60.
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Market Strategy Tariff Turbulence Abates – Stocks To Buy In The Upcoming S$5b Blitz
Singapore’s market outlook has improved following the US backing down from its tariffs and the upcoming MAS liquidity support. The S$5b EQDP will boost non-index mid caps and in that vein, we like CENT, CSSC, CD, CSE, FEH, FRKN, HLA, OTEK, PROP, SSG, SIE and VALUE. In the meantime, the STI’s strong defensive nature and undervalued metrics support a revised 2025 target of 4,054. Our top large-cap picks are CLAS, CICT, FR, KEP, OCBC, SATS, SE, SCI, ST and YZJSGD.
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| LIM & TAN | LIM & TAN |
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Bukit Sembawang Estates / BSE ($3.92, down 0.01) revenue decreased by 24% to $225.9 m and cost of sales decreased by 34% to $166.5 m as compared to 2H FY2023/24. The revenue from property development decreased by 25% to $219.0 m as compared to 2H FY2023/24 was mainly due to the absence of revenue contribution from The Atelier in 2H FY2024/25 as it has obtained TOP in May 2024 and its revenue was fully recognised in 1H FY2024/25. The Group’s gross profit increased by 32% from $45.0 m to $59.4 m as compared to 2H FY2023/24 mainly due to higher profit recognised on development projects. In 2H FY2024/25, profits were recognised for Pollen Collection, LIV@MB and Fraser Residence Orchard, Singapore. In 2H FY2023/24, profits were recognised for Pollen Collection, The Atelier, LIV@MB and Fraser Residence Orchard, Singapore. In 2H FY2024/25, higher profits were recognised from property development segment attributable to higher profit recognised on development projects as compared to 2H FY2023/24. Lower profits were recognised from hospitality segment attributable to lower impairment loss on property, plant and equipment written back relating to Fraser Residence Orchard, Singapore as compared to 2H FY2023/24. Other income increased by $0.03 m was mainly due to higher late interest income collected from purchasers in 2H FY2024/25. Other operating income decreased by $3.1 m for 2H FY2024/25 was mainly due to decrease in impairment loss on property, plant and equipment written back relating to Fraser Residence Orchard, Singapore amounting to $3.9 m as compared to $6.8 m for 2H FY2023/24. At $3.92 per share, BSE is capitalized at $1bln, and trades at a historical PE of 9x and price to book of 0.6x. Final dividend was maintained at 4 cents per share, but special dividend was raised from 12 cents to 16 cents per share, translating to a total payout of 20 cents per share (45% payout ratio) and yield of 5.1%. With its net cash of $582mln accounting for 58% of its market cap of $1bln, and price to book of 0.6x, we see BSE as undervalued and see opportunities to “Accumulate” on any price weakness.
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Boustead Singapore ($1.04, down 1 cent) announced its unaudited financial results for the full-year ended 31 March 2025 (“FY2025”). Net profit for the Group was 48% higher year-on-year at S$95.0 million, mainly due to lower income tax expenses and a one-off S$29.0 million gain on the non-cash transfer of the Boustead Projects fund management business to UIB, in exchange for shareholding in UIB1. For a comparative review, after adjusting for other gains/losses and impairments, all net of non-controlling interests, net profit for FY2025 would have been 8% higher year-on-year. Boustead Singapore’s market cap stands at S$511mln and currently trades at 9.5x forward PE and 0.8x PB, with a dividend yield of 6.8%. There are currently no analysts covering Boustead on Bloomberg. Given attractive valuations, net cash position, special dividends and strong macro outlook, we recommend an Accumulate on Boustead Singapore. |
