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LIM & TAN |
LIM & TAN |
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CSE Global Limited ($0.91, down 0.01), a global systems integrator providing electrification, communications and automation solutions, today announced that it has secured three major contracts worth US$124.6 million (approximately S$161.7 million) in the United States of America (“USA”). These contracts are for the design and manufacturing of power distribution centres, as well as the integration of complex electrical and control systems and equipment in the USA for the Liquefied Natural Gas (“LNG”) market. The contracts are slated for execution between 2026 and 2028. We believe more contracts awaits CSE as management targets for their order books to hit the $1bln mark soon from $600 plus million currently. With Bloomberg consensus remaining bullish on CSE with 1 year target price of $1.20, and its forward PE of 15-16x remaining undemanding relative to growth rate of 30%, we maintain an “Accumulate” rating on CSE Global.
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XMH Holdings (S$0.153, down 3 cts) has announced net profit of S$15.4mln for the 1HFY2026 ended October, up 22.6% from S$12.6mln the previous year. Earnings per share came in at 14.09 S cts, up from 11.49 S cts a year ago. XMH Holdings is capitalized at S$168mln at trades at an annualized P/E of 5.5x and P/B of 1.8x. Dividend yield stands at 5.2%. XMH continues to see steady growth in its 1HFY26 numbers, continuing on from a robust full year FY25 where profits grew 104% yoy. Management expects to see healthy momentum for the rest of the year, although headwinds may come from the tax assessment notice from the Indonesian tax authority of about S$11-12mln which remains under review. Given its decent valuations, attractive yield and backed by a net cash of S$13.2mln, we maintain an “Accumulate” on XMH Holdings. |
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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Malakoff Corporation Another setback at Tanjung Bin Complex
■ A crane collapse at Malakoff’s Tanjung Bin Complex has caused two fatalities and three injuries, albeit TBP and TBE operations remain unaffected. ■ This is the 2nd safety incident at TBC within three months, likely increasing regulatory and ESG scrutiny, though asset operations are not impaired. ■ The ~22% decline in share price since the TBE incident in Oct suggests heavy risk premium for patchy operations recently is already being priced in.
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GFPT Resilient amid macro headwinds
■ Export recovery to EU/UK, cost tailwinds from lower feed prices and stable chicken prices, plus capacity expansion in 2H26F, are key growth drivers. ■ We raise 2025F net profit by 11% and 2026F by 8%, driven by stronger exports demand, high net margin, cost tailwinds, and added capacity. ■ Reiterate Add on its diversified strategy, resilience against domestic and currency risks, improving 4Q25F outlook, low debt and attractive valuation.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Solarvest Holdings (SOLAR MK) Secured additional LSS5 wins
Maintain BUY with SOP-TP of MYR3.67 Solarvest together with Binastra Corp (Not Rated) has secured several solar EPCC contracts worth MYR171.7m in relation to 3 projects under LSS5. This adds MYR84.1m to Solarvest’s effective order book increasing it to MYR1.7b. We anticipate further new project wins to materialise by end FY26E to propel order book to MYR2.5-3b. We leave our forecasts unchanged as these job wins are within our orderbook assumptions. Reiterate BUY with SOTP-TP of MYR3.67.
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Bangkok Airways (BA TB) Samui as the treasure island
Resilient airline operations with attractive valuation We reiterate BA with a BUY and THB19.0 TP after lifting FY25E earnings by 6% and FY26E by 9%. BA is expected to deliver stable passenger yield in FY26E, thanks to solid demand for its monopolised Samui route. The stock also has upside from the new mega aviation hub in the Eastern Economic Corridor (EEC) where the government is likely to permit project construction in 2026. BA’s valuation is attractive at 8.0x FY26E P/E vs. APAC airline peers at 13x. Meanwhile, it offers lucrative dividend yields of 8-9%. Key downside risks include any failure to extend its ground and cargo concession at BKK and/or a slowdown in tourism demand for Samui island.
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