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CGS INTERNATIONAL |
LIM & TAN |
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Utilities - Overall Rolling out record solar + BESS capacities
■ The government has launched 2.65GW of new solar quotas, the largest todate, underscoring the country’s continued commitment to the NETR. ■ The mandatory 1.25GW BESS integration marks a shift from simple RE capacity additions towards building a more resilient power system. ■ Maintain Overweight on Malaysia utilities.Top picks are Tenaga and Malakoff.
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Geo Energy Resources Limited (S$0.54, down 1.5c) is proud to announce that the Group’s MBJ Integrated Infrastructure has gone operationally live! The MBJ Integrated Infrastructure marks a new milestone for the Group, establishing a new pillar of revenue in addition to the mining operations. This is the start of the Group’s transformati on from a pure coal mining company into a complete infrastructure, mining and logistics company. We see Geo Energy Resources as a beneficiary of higher coal prices and coal volume growth in 2H’26 when their new coal mines come on-stream as well as coal toll road infrastructure play when their newly built road MBJ goes “live” in July’26. Trading at an undemanding forward PE of 9x, 1x book, 2% div yield and with consensus 1 year target price of 80cts, we maintain an “Accumulate” rating on Geo Energy Resources, especially on weakness. (share buy backs would provide support on broad market weakness). |
| LIM & TAN | MAYBANNK SECURITIES |
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We highlight the key points from Keppel Infrastructure Trust’s / KIT (S$0.53, unchanged) EGM. The EGM centred on the proposed acquisition of an additional 39% stake in Keppel Merlimau Cogen (KMC), a 1,300MW combinedcycle gas turbine power plant, as an interested person transaction. Management reiterated that the acquisition aligns with KIT’s strategy of owning essential infrastructure assets that generate resilient, long-term and predictable cash flows. KIT’s market cap stands at S$3.1bln and currently trade at 31x forward PE and 2x PB, with a dividend yield of 7.6%. Consensus target price stands at $0.58, representing 9.4% upside from current share price. Despite the higher valuations relatively, KIT has high yield and cost pass through mechanisms on it’s business. As such, we recommend an Accumulate on KIT for its yield.
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Singapore REITs 2H26: Steady execution
Growing distribution, Undemanding valuation While the shifting interest rate stance poses uncertainty, it is accompanied by improving GDP growth outlook and ample liquidity in Singapore. Resilient sub-sector fundamentals suggest continued organic growth. Meanwhile, coverage REITs are scouting for inorganic growth, sizable asset enhancements and developments while retaining financial flexibility. Allin, distribution growth should continue at a low-to-mid single digit pace while counters offer historically high yield spreads and discounts to trailing book values. Picks: CICT, CLAR, CAREIT, CDREIT, FCT, LREIT, MLT
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| UOB KAYHIAN | DBS GROUP RESEARCH |
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Beng Kuang Marine (BKM SP) Deepening FPSO Exposure, Orderbook On The Rise
Highlights • BKM’s management recently highlighted the group's FPSO transition and growth strategy. • ASOM recently secured S$85.2m in new contracts in 1H26, including West Africa FPSO awards, lifting group orderbook to S$70.7m as at end-Jun 26. • Maintain BUY with an unchanged target price of S$0.75, pegged to 14x 2027F PE. BKM currently trades at 9.2x 2027F PE, vs peers’ average of 11.8x.
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ComfortDelGro Corporation Ltd
What's New Another bus package loss for SBS Transit LTA Serangoon–Eunos bus package awarded to SMRT for 5 years from 13 Jun 2027, extendable by 2-5 years SMRT’s bid came in the lowest at SGD600mn, 5% below SBS Transit’s bid of SGD630mn LTA highlighted that SMRT's proposal would deliver cost savings, implying the current contract value could be broadly in line with SBS Transit's tender bid of SGD630mn Est SGD2mn earnings impact in FY27F for CD on pro-rated basis, 1% of FY27F earnings; Maintain HOLD and TP of SGD1.30
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