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CGS CIMB |
UOB KAYHIAN |
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ISOTeam Ltd Ready for lift off
■ ISO raises S$10m via placement (S$7m) and 3-year, 4% convertible bonds (S$3m) to fund drone project, including the purchase of c.60 more drones. ■ We believe the debut of ISO’s façade painting drone is imminent and forecast 50%/100% drone utilisation in FY27F/28F which could lift margins. ■ We reiterate Add for its recurring business model and profit/margin recovery.
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Food Empire Holdings (FEH SP) Site Visit In Vietnam Reinforces Our Positive View; Raise Target Price By 10%
Highlights • Vietnam site visit highlighted strong execution by local management. • MacCoffee’s market share rose 2ppt yoy to 15% in 2024, with revenue growing double digits for the past three years. • Expect strong growth via regular new product launches and marketing initiatives. Maintain BUY with a 10% higher target price of S$3.00.
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LIM & TAN |
LIM & TAN |
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KBH Metro Partner, a consortium formed by ComfortDelGro ($1.51, up 0.02) and RATP Dev, has been officially pre-qualified to bid for the upcoming operations and maintenance contract for the Copenhagen Metro. The bid will be the third collaboration between CDG and RATP. The two companies previously worked on Singapore’s Jurong Region Line through the One Rail partnership, as well as the automated Line 15 South in Greater Paris as part of the ORA consortium with French rail player Alstom. Based on the strong track record of contract wins and execution of CDG and RATP, we believe that they stand a good chance to win the Copenhagen Metro contract worth 2.4bln euros. We thus maintain an Accumulate rating on CDG given its steady 5% div yield and consensus 1 year target price of $1.80/share. Forward PE is 15x while price to book is 1.3x.
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Singapore Post ($0.43, down 0.5 cents) had 151.3 million of its shares sold by Alibaba Investment on Sep 9, which reduced the holding of the Chinese e-commerce heavyweight Alibaba Group wholly owned subsidiary to 4.6% from 11.3%. SingPost’s market cap stands at S$967.5mln and currently trades at 0.7x PB, with a dividend yield of 0.8%. Consensus target price stands at S$0.51, representing 18.6% upside from current share price. Given that their earnings from their crown jewel are gone and the proceeds were given out, the drop profits and share price are warranted and expected. Given RNAV of 70-75 cents, we continue to maintain an “Accumulate” rating on SingPost. |
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Banking Solid Under Pressure Highlights
• We expect sector earnings to grow 3%/5% in 2025/26 respectively, with a stronger rebound in 2026 as deposits reprice lower, lifting NIM (+2bp). • Earnings resilience is underpinned by an about 5% loan growth, stable credit costs, manageable NIM pressure, and potential non-interest income upside. • Maintain OVERWEIGHT. We remain constructive on the sector. Valuations remain appealing, with the sector trading at a mean P/B of 1.10x and offering an attractive dividend yield of 6.0%/6.5% for 2025/26 respectively.
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