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CGS INTERNATIONAL |
MAYBANK KIM ENG |
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Seatrium Ltd Maersk uncertainty cleared
■ STM announced dispute resolution with Maersk, following which STM will deliver WTIV Sturgeon to Maersk by Feb 2026. No further legal actions. ■ Around US$110m will be due upon delivery, with the remaining US$250m restructured under a credit agreement over the next 10 years. ■ We estimate higher interest income of c.S$12m p.a. for STM over FY26F27F generated from the WTIV under the credit arrangement. ■ Reiterate Add with an unchanged TP of S$2.67. We do not expect major provisions as WTIV construction remains on track with visible delivery date.
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Merdeka Copper (MDKA IJ) Expecting solid turnaround
Maintain BUY and TP of IDR2,800 Maintain BUY on MDKA with unchanged SOTP-based TP of IDR2,800 due to the structural margin recovery achieved in 9M25, driven by strict cost discipline that successfully offset revenue softness. This operational turnaround creates a resilient platform for FY26E, where the investment thesis shifts to high-growth execution via acceleration of the Pani Gold Project, providing a clear catalyst for volume expansion.
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MAYBANK KIM ENG |
LIM & TAN |
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MN Holdings (MNHLDG MK) Secures TNB submarine cable works
Maintain BUY call and MYR2.27 TP MN Holdings (MNH), via a consortium, has secured a TNB contract to upgrade the 132kV submarine power cable system between Kuala Perlis and Langkawi, adding an effective MYR17.7m to its order book. We view positively MNH’s partnership with an international cable manufacturer, as the project track record could position it to tap into ASEAN grid-related opportunities. Our earnings forecasts are unchanged. Maintain BUY with a TP of MYR2.27, based on 23x FY26E EPS.
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Capitaland Investment’s / CLI ($2.67, down 0.02) subsidiary CapitaLand Malaysia Trust (CLMT) has entered into a forward purchase agreement to acquire five high-specification industrial facilities (the Subject Properties) in i-TechValley, located within Iskandar Malaysia, Johor. The facilities were acquired from Greenhill SILC Sdn. Bhd. and Pentagon Land Sdn. Bhd., both wholly owned subsidiaries of Bursa Malaysia listed-AME Elite Consortium Berhad. The agreed value of RM220.8 million, negotiated on a willingbuyer willing-seller basis, is at a discount of 0.6% to the independent market valuation of RM222.1 million commissioned by the Trustee. We see the acquisition by CLMT as strategically designed to capitalize on the high growth potential of the JS-SEZ tie-up as well as Johor’s ability to capitalize on its proximity to Singapore, thus making it attractive for Singapore companies to set up operations in Johor given its big cost advantage vs operating in Singapore. We maintain an “Accumulate” rating on CLI as we see CLI as the mothership of all its REITs and their ability to capitalize on the lower interest rate environment to make strategic acquisitions to grow their recurring earnings and DPUs. CLI provides an attractive yield of 5-6% and trades at 30% discount to consensus TP of $3.50. |
| LIM & TAN | KGI FRASER |
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Zixin Group (S$0.036, unchanged) announced that it has, through the Company’s wholly-owned subsidiary, Zixin International Pte. Ltd., incorporated a wholly-owned subsidiary, Hainan Zixin Sweet Potato Industry Technology Co., Ltd., in Hainan Province, China.
Zixin’s market cap stands at S$70mln and currently trades at 6.3x FY26F PE and 0.5x PB, and does not pay dividends. Given seasonal trends, we anticipate an even stronger performance in 2HFY26. Our target price stands at S$0.066, representing 83% upside from current share price. We currently have a BUY recommendation on Zixin.
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Geo Energy Resources Ltd Sales volume doubled in 3Q25, yet profitability pressured by lower coal prices Valuation & Action: We maintain our OUTPERFORM rating with an increased target price of S$0.76 from the previous S$0.69, remaining positive on Geo Energy, reflecting the higher sales volume and our view of resilience in coal demand over the longer run. Furthermore, our conservative valuation excludes potential upside from infrastructure toll revenues and shipping operations, which could provide material value creation, meaning there is more than one upside catalyst for our views to materialise.
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