|
CGS CIMB |
UOB KAYHIAN |
|
Soilbuild Construction Group Building industrial momentum
■ We hosted an investor meeting with SBCG management and came away positive as management targets for order book of c.S$1bn in FY26F. ■ YTD order wins are S$360m, with some tenders pending finalisation by end2025F. SBCG sees contract award momentum is likely to extend past 2025F. ■ Precast is a key growth driver in HDB and extending into industrial projects. ■ Maintain Add and TP of S$4.21, still based on 10x CY26F P/E. Re-rating catalysts: order wins, stronger-than expected margin or corporate actions.
|
First Resources (FR SP) Buoyant Outlook Backed By Fresh Acquisition
Highlights • First Resources’ (FR) firm earnings momentum is set to carry on in 2H25, with strong output growth led by both its pre-existing and newly-acquired plantations. • Its enlarged production base should also enable FR to pursue further downstream expansion opportunities, namely biodiesel production as Indonesia sets its sights on implementing the B50 biodiesel programme sometime in 2026. • Maintain BUY with a higher target price of S$1.97 (from S$1.85), based on 8.5x 2026F PE. Its dividend yield remains appealing at an implied 6.8% for 2025. Previous target price: S$1.85.
|
|
UOB KAYHIAN |
LIM & TAN |
|
Keppel (KEP SP) Monetisation Momentum And Bifrost Tailwinds
Highlights • A successful 3Q with its portfolio streamlined, execution risk reduced, and capital recycled due to SSC divestment, Genting Lane DC sale, Bifrost RFS. • Looking forward to recurring earnings from Bifrost while M1 sale and asset-light strategy support potential dividend upside. • Maintain BUY with a higher target price of S$10.85 (previously S$10.46).
|
Centurion Corp (S$1.42, down 4 cts) announced that the Group has acquired a land site situated at William Road, Euston, London to develop a c.225-bed Purpose-Built Student Accommodation (“PBSA”). At S$1.42, Centurion is capitalized at S$1.2bln and trades at 10.6x forward P/E and 1.0x P/B with a dividend yield of 2.8%. Centurion has started to deploy some of its ~S$500mln cash proceeds from the REIT spin-off into new assets, and this London PBSA will be its second Epiisod property after Sydney. Post spin-off, Centurion has seen some share price weakness, falling around 12% while the REIT has risen by 19%. Consensus TP of S$2.02 represents a 42% potential upside. Given a strong construction demand outlook in Singapore over the next few years, coupled with a robust pipeline of assets and undemanding valuations, we upgrade our previous “Accumulate on Weakness” recommendation to “Accumulate” for Centurion Corp. |
| LIM & TAN | DBS GROUP RESEARCH |
|
King Wan ($0.047, unchanged) announced the proposed disposal of it’s entire 30% shareholding interest in Gold Hyacinth Development Pte. Ltd. (GHD), an indirect associated company of King Wan Corporation Limited to Mrs. Nawarat Wangpreedalertkul (“the Purchaser”) for an aggregate purchase consideration for the Sale Shares is S$3,560,000.
|
ComfortDelGro Corporation Ltd Driving growth beyond borders
Investment Overview Transformational international expansion to drive growth in the coming years. Given Singapore’s limited market size, the company has leveraged its strong balance sheet to aggressively acquire international assets such as A2B (SGD150mn), CMAC (SGD135mn), and Addison Lee (SGD460mn). These strategic acquisitions complement its existing operations and are expected to be earnings accretive. We forecast international operating profit contribution to rise from 35% in FY24 to 49% by FY26F, approaching parity with domestic contribution.
|
