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CGS CIMB |
CGS CIMB |
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Food Empire Holdings Ltd Keen interest in Food Empire
■ We attended Food Empire Holdings’ (FEH) presentation at Singapore Exchange’s (SGX) partner event on 23 Jul evening at the SGX Auditorium. ■ In our view, there was keen interest in FEH at the event with participants interested in the company’s outlook and the risks that it faces. ■ We believe FEH’s efforts to grow its business and the MAS S$5bn EMDP could re-rate its valuation to 17x FY26F P/E (3 s.d. above 9-yr average).
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DFI Retail Group Season for reward
■ DFI reported 1H25 underlying PATMI of US$105m (+39% yoy), in line with expectations, mainly driven by strong H&B and associate contribution. ■ Surprise announcement of 44.3 UScts in special dividend brings our FY25F DPS to 54.8 UScts, implying an attractive 16% yield. ■ Reiterate Add with a higher TP of US$3.86, based on higher 17x 2026F P/E and inclusion of special dividend. ■ Near-term catalyst: announcement of Investor Day (likely to be held in 4Q25F) to provide clarity on strategic direction and near-term targets.
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MAYBANK KIM ENG |
MAYBANK KIM ENG |
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Civmec Ltd (CVL SP) Growing orderbook
Wins new contracts worth >AUD600m; U/G to BUY Civmec said it secured several new contracts and extensions with a combined value of about AUD600m+. This includes the addition of the SEA1180 program of works following the group’s successful acquisition of Luerssen Australia in Jul 2025, further strengthening its position in the maritime defence sector. In view of Civmec’s improving orderbook and medium-term earnings outlook, we upgrade the stock to BUY (from HOLD) with a higher TP of SGD1.05, based on 14x FY26E P/E.
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Aztech Global (AZTECH SP) Better 2Q25 with improving outlook
Maintain HOLD, raise TP to SGD0.50 from SGD0.45 2Q25 revenue of SGD143.4m and NPAT of SGD14.8m was much better than 1Q25, in line with our estimates. Aztech secured 12 new products and added 7 new customers with new products to start production in 2H25. It has also right-sized its Malaysian factories for better efficiencies. We expect 2H to be better than 1H25 and maintain HOLD with a higher TP of SGD0.50 from 0.45, pegged to a higher 11.2x from 10.2x FY25E P/E to reflect the new customer and product wins.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Marco Polo Marine (MPM SP) Laggard play: 2H25 earnings catch-up
Maintain BUY at a higher SGD0.07 TP We expect 3Q25 to be better QoQ but likely to be softer YoY due to weaker utilisation rates for its vessels. However, our channel checks indicate rates are still rising slightly and utilisation rates should pick up in 4Q25E. MPM remains a laggard and with valuations among the SMIDs rising sharply across the board, we believe this is an attractive opportunity for a potential rotation into this underperforming segment. Maintain BUY at a higher TP of SGD0.07 from SGD0.06 based on a higher 10x FY25E P/E (from 8.5x FY25E P/E).
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Singapore Post Ltd (SPOST SP) Famous Holdings sold, properties next
Maintain BUY with an unchanged TP of SGD0.74 SingPost divested its entire freight forwarding business for SGD177.9m. It will release about SGD104m of cash for the company and will realise a gain of SGD10.5m, in line with our estimate. The new board, which is undergoing a reshuffle, will determine a new strategy with the management team in the next few months. Until then, excess cash will be kept after the special dividend of SGD0.09 (due to be paid on 14 Aug 2025). However, asset monetisation will continue with post offices next then SingPost centre.
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