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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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AEM Holdings Ltd S$100m net profit could come earlier
■ AEM’s 1Q26 net profit (S$14.3m, +329% yoy) was 13% above our S$12.7m expectation and was also above Bloomberg consensus's forecast. ■ AEM raised FY26F revenue guidance to S$550m-600m from S$460m-510m previously (issued on 25 Feb 2026). ■ Reiterate Add, with a higher TP of S$14.79 as S$100m net profit could come earlier in FY27F than previously expected FY28F.
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Centurion Corporation Ltd Strength in numbers
■ 1Q26 revenue beat expectations at 26%/27% of our/Bloomberg consensus’ FY26F forecasts, driven by new beds and positive rental reversion. ■ We expect a stronger 2H26F, driven by occupancy ramp-ups and new KWA contributions, although rising costs are likely to compress near-term margins. ■ Reiterate Add, with an unchanged RNAV-based TP of S$1.89.
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CGS INTERNATIONAL |
UOB KAYHIAN |
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CSE Global Solid ramp-up in DC electrification projects
■ CSE posted a strong 1Q26, with revenue ahead of expectations and order wins up 75% yoy, improving FY26-27F earnings visibility. ■ No direct Middle East impact; we expect lower FY26-28F group EBITDA margins due to higher input costs and start-up costs for its new facility. ■ Reiterate Add, with a higher TP of S$2.10, driven by a 10% uplift in FY27F EPS and a valuation re-rating to 24x FY27F P/E (from 19x previously).
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United Hampshire US REIT (UHU SP) 1Q26: Benefitting From Accretive Acquisitions And NPI Margin Expansion
Highlights • NPI grew 12.7% yoy in 1Q26 due to higher rents for new leases, rental escalation for existing leases and contributions from Dover Marketplace and Wallingford Fair Shopping Center. NPI margin improved 2.4ppt yoy to 67% due to higher portfolio occupancy and contributions from new leases. • UHU extended leases with major grocery tenants Giant at Upland Square and Stop & Shop at Fairhaven Plaza for more than 10 years. Portfolio WALE lengthened from 7.7 years to 8.0 years. • UHU trades at an attractive 2026 distribution yield of 9.4% (Kimco Realty: 4.5% and Regency Centers: 3.9%). Maintain BUY. Target price: US$0.72.
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| PHILLIP SECURITIES | CGS INTERNATIONAL |
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ComfortDelGro Corp Ltd Weakness in taxi spreads
▪ 1Q26 revenue/PATMI were below expectations at 22%/19% of our FY26e forecast. Underlying PATMI in 1Q26 fell 16% YoY to S$40.5mn. The largest drag to earnings was the 45% YoY collapse in operating earnings to S$17.5mn. ▪ The two weak spots in 1Q26 earnings were (i) Declines in Singapore and Australia taxi fleet of 7% and 10% YoY, respectively, and overall weakness in consumer spending on private hire; (ii) Disruption to Middle East airlines’ airport transfer bookings in the UK. ▪ We lower our FY26e earnings by 11% to S$190.6mn. Our DCF target price is lowered to S$1.35, and recommendation downgraded from ACCUMULATE to NEUTRAL. Higher fuel prices, additional surcharges, and weaker economic conditions will soften spending on premium transportation services such as taxis. Taxi operations face the additional pressure of intense competition and declining fleet size. Comfort is transitioning to a more hybrid P2P model in Singapore that includes autonomous technology.
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Keppel Infrastructure Trust KMC adds to certainty amid softer outlook
■ KIT reported strong 1QFY26 distributable income of S$53.7m, 18.2% higher yoy, after stripping out the divestment gain from Philippine Coastal. ■ We believe the recent increase in stake in KMC, once it is completed, will be constructive to KIT’s FY26F distribution. ■ Maintain Add on FY26F DPU yield of 7.4%. Management intends to maintain a stable distribution.
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