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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Oiltek International Ltd FY27F EPS could grow 300% yoy
■ On 6 Apr 2026, Oiltek announced an HOA for a SAF facility. If converted into a definitive agreement, its order book could reach a record RM1.75bn. ■ We assume Oiltek will be able to convert this HOA into its order book and will complete the project over FY27-28F. ■ This could see Oiltek’s FY27F EPS grow 300% yoy and, at our unchanged 27x FY27F P/E target, raise our TP to S$3.38.
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DBS Group Yield-backed resilience
■ We expect DBS to report 1Q26F PATMI of S$2.8bn (-4% yoy, +24% qoq) on lower NII yoy from NIM compression but higher non-II qoq due to seasonality. ■ Given management overlay of c.S$2.5bn as of end-FY25, we do not foresee elevated credit costs for 1Q26F arising from the ongoing Middle East conflict. ■ Maintain Hold with an unchanged GGM-based (LTG: 2.0%, ROE: 18.0%) TP of S$60 as we expect flat earnings yoy in FY26F.
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UOB KAYHIAN |
UOB KAYHIAN |
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Sembcorp Industries (SCI SP) Turning Up the Heat: Sembcorp’s Alinta Ignition
Highlights • Alinta acquisition is immediately EPS-accretive with no equity dilution, lifting 2026-28E earnings 16-25% and boosting OECD exposure to 64% of net profit. • Once seen as a liability, its Loy Yang B coal plant may now represent a strategic asset with its status as a dispatchable baseload power generator. • Maintain BUY with a higher target price of S$8.20, implying 17% upside.
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Deleum (DLUM MK) Unperturbed By Geopolitical Storm, Resumes Diversificaiton
Highlights • Positioned in a sweet spot on energy security theme, which was a key focal theme among investor discussions during the recent Gems Conference. Deleum’s 90%-owned P&M subsidiary, Its P&M demand remains strong for both O&G and potentially non-O&G, while its market leadership in OIS makes it a prime beneficiary of elevated oilfield/well intervention services, which can be seen as a low-hanging option to boost production (although any real catalyst will need likely three months to materialise). Diesel costs are not expected to be material on earnings impact.
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Singapore Banks Shock Absorber
Well positioned to absorb oil shock. But yields tight Oil shock related spikes in Singapore banks’ credit costs and NPLs have been steadily declining in the past 25-years. While the full impact of the current US-Iran shock is unknown, we believe the sector is in a strong position to manage downside risks. Indeed, we estimate in a “Stress Case” scenario with sharply higher credit costs, and falling loans and NoII, the impact to capital is limited. This should keep dividend and capital returns policies intact. However, with yields less appealing, maintain NEUTRAL. We prefer NBFIs including SIF and IFAST, while DBS is top bank pick.
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Grab Holdings (GRAB US) 1Q looks solid; Fuel a key watchpoint for rest of 2026
Solid 1Q; intact thesis and attractive valuation We expect Grab to deliver a resilient 1Q26 (report due 4 May), with GMV up 20% YoY, revenue up 18% YoY and adjusted EBITDA up 44% YoY to USD153m - c.6% ahead of the street. While 2Q could see some pressure from fuel-price inflation, our broader thesis is intact. Grab is chugging along well in a rational competitive environment, is on the right side of the AI equation (limited risk of AI disintermediation in on-demand services while AI creates opportunities in the fintech space), and remains a potential beneficiary of AV adoption. Trading at <10x 2027 EV/EBITDA, valuations are at a 20% discount to Uber while adj. EBITDA CAGR at 42% is almost double that of Uber. We see the 26% YTD correction as a buying opportunity. We retain our USD6.48 TP based on a SOTP valuation.
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