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CGS INTERNATIONAL |
UOB KAYHIAN |
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Singapore Airlines All eyes on SIA’s 1QFY27F yield performance
■ We expect SIA to report 1QFY3/27F net profit of c.S$150m (-65% qoq) and EBIT of c.S$650m (-17% qoq) due to the surge in jet fuel prices. ■ However, we think SIA will deliver a very robust 2QFY27F as fuel prices have since corrected sharply while travel demand has remained strong. ■ Reiterate Hold with a higher TP of S$7.65 (1.45x P/BV, +2 s.d. from mean since 2001) from S$6.44 (1.2x P/BV, +1 s.d.).
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Lum Chang Creations (LUCC SP) Rerating Ingredients In Place From Mainboard Transfer And Liquidity Enhancement
Highlights • LCC’s Mainboard transfer remains on track, meeting all requirements for its SGX Mainboard listing. • LCC's placement and bonus issue enhance its capital base, trading liquidity, and readiness for Mainboard listing. • Maintain BUY with a higher target price of S$0.510. Catalysts include a successful Mainboard transfer and stronger order wins.
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| MAYBANK SECURITIES | LIM & TAN |
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China Semis: Inference Will Become the Next Energy Bill
• China’s semiconductor self-sufficiency drive has moved from aspiration to institutionalized reality across the technology stack, and the newest developments sharpen the picture on “why” model developers, and not just hyperscalers, are now driving chip design. As of mid-2026, virtually every major Chinese tech company is designing proprietary chips or investing in domestic startups. This is inevitable as per-token cost becomes the highest factor driving the AI ecosystem. Doubao (Bytedance AI chatbot) ran from 4 trillion daily tokens in Dec 2024 to 50+ trillion at end-2025.
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Keppel Ltd ($11.59, up 0.10) through its Connecti vity Division, has signed an Indefeasible Right of Use (“IRU”) agreement with a global leading hyperscaler for the fi nal remaining fi bre pair on the Bifrost Cable System (“Bifrost”). With this agreement, all fi ve fi bre pairs in Keppel’s Bifrost portf olio have been committ ed, at an esti mated total contract value of approximately US$1.3 billion (S$1.7 billion), including stable recurring income from cable operati ons and maintenance over 25 years. We maintain BUY on Keppel given its exposure to the fast-growing AI infrastructure market and consensus 1 year target price of $13 implies upside potenti al of 12% while dividend yield is just above the 3% level (there could be special payouts upon moneti zati on of their legacy rigs). |
| LIM & TAN | DBS GROUP RESEARCH |
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SGX (S$24.42, up 18 cents) delivered a strong fi nish to FY2026, with robust growth across both its securiti es and derivati ves businesses. Market acti vity was supported by improving investor senti ment, higher parti cipati on from both insti tuti onal and retail investors, increased hedging demand amid geopoliti cal and macroeconomic uncertainty, and conti nued momentum in Singapore equiti es. The strong June performance capped a year in which trading acti vity reached multi -year highs across several asset classes.
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JustCo Holdings Limited
Scaled for growth, positioned for resilience • Justco is Singapore’s largest co-working operator, with 50 centres across APAC, operating under a dual model of traditional leases and management contracts • Hybrid working is driving global demand for flex office space; APAC market expected to grow at a CAGR of c.14% over the next two years • Proven operational efficiency with cash EBITDA breakeven in c.5 months, payback in c.16 months, margins improving from 3.0% in 2023 to 9.2% in 2025 • Initiate with BUY, TP SGD1.06; FY26 an inflection point, with 28 new centre openings to grow workstation capacity by c.40%
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