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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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Keppel Ltd Powering up Sakra, monetising Bifrost
■ We believe KEP could be themed as an infrastructure proxy in 2H26F, with the commencement of its Sakra plant on 29 May 2026. Upgrade to Add. ■ The plant is contracted till 2027, with our estimate spark spread of c.S$50- 60/MW on a blended basis. ■ The 3 rd and 4 th pairs of Bifrost fibre pairs reached definitive IRU agreement in May/Jun 26, adding to connectivity earnings and recurring O&M fees. ■ Relative to peers' average, KEP could deliver stronger 1H26F net profit (+22% to c.S$516m) driven by infrastructure and connectivity ■ We expect KEP to provide updates on its M1 sale in 1H26F. We remove our discount on the group on execution and upgrade our TP to S$13.52.
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China Aviation Oil Sinopec-CNAF restructuring completed
■ Sinopec has completed its restructuring with CNAF, becoming deemedinterested in CNAF's 51.31% stake in CAO; no mandatory offer triggered. ■ Expanded IPT General Mandate approved and now effective, opening CAO up to the broader Sinopec Group across fuel, logistics, treasury, services. ■ Reiterate Add, with an unchanged SOP-based TP of S$2.68.
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| CGS INTERNATIONAL | PHILLIP SECURITIES |
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Frencken Group Ltd Alignment impact may be more manageable
■ We visited Frencken for an update on 8 Jul 2026. We expect Frencken to report its 1H26F results in the week of 10 Aug 2026. ■ We expect net profit of S$10.8m (+35% qoq, +8% yoy) in 2Q26F and stronger net profit of S$24.2m (+29.3% hoh, +26.4% yoy) in 2H26F. ■ Reiterate Add with a TP of S$3.25. We see strong semicon demand mitigating any potential drag from Frencken's ongoing alignment initiative.
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Performance of Singapore & US IPOs – Buy Singapore Catalist & US Blockbusters
To conclude, Catalist Board listings offer a superior risk-reward profile compared to Mainboard IPOs for traders seeking to engage in short-term IPO speculation in the Singapore market. This is given the high probability of capturing double-digit returns on the opening day, alongside sustained positive returns over longer post-listing timeframes. For traders looking to speculate in major US IPOs, the optimal strategy is to ride the initial 1-week to 1-month momentum wave and exit positions before lock-up expirations. In addition, buying and holding a mega-cap IPO through its first year has historically been a value destructive proposition.
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| LIM & TAN | LIM & TAN |
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CNMC’s market cap stands at S$474mln and trades at 6.6x FY26F P/E and 4.6x P/B, with a dividend yield of 5.1%. We do not rule out potenti al for a higher dividend payout, CNMC has been more generous in recent years at >40% payout, supported by resilient cash fl ows and a netcash positi on. Despite severe gold price volati lity over the last few months, we expect CNMC to report strong results for 1HFY26, driven by average gold prices of USD4,680/oz since the start of the year (1HFY25: USD3,197/oz). Resilient gold prices, coupled with an increase in gold output as targeted by the company, will render 2026 a year to watch. We maintain a BUY recommendati on on CNMC Goldmine with a higher target price of S$1.90 (Previous TP: S$1.53).
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Marco Polo Marine / MPM ($0.129, up 0.3 cents) announced that PKR Off shore Co., Ltd. (“PKRO”), which operates the Group’s off shore wind division, has entered into a framework agreement (the “Agreement”) with Siemens Gamesa Renewable Energy (“Siemens Gamesa”), a leading global off shore wind turbine manufacturer, for the deployment and charter of two Commissioning Service Operati on Vessels (“CSOVs”).
MPM’s market cap stands at S$504.9mln and currently trades at 14x forward PE and 1% dividend yield. Consensus target price stands at S$0.21, representi ng 62.8% upside from current share price. Given strong fundamentals, the recent retracement from its high of S$0.197, and that price is currently below AGT partners and Michael Kum’s latest announced purchase, we conti nue to be positi ve on MPM and recommend a BUY. |
