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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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China Aviation Oil Better 2H26F and payout catalysts ahead
■ 1H26 net profit of US$41m missed expectations as jet fuel cost inflation and impairment losses hit gross profit, partly offset by a strong SPIA contribution. ■ Better 2H26F ahead; US$589m net cash, lowest payout among Sinopec subsidiaries provides potential for higher capital return and M&A prospects. ■ Reiterate Add, with a lower SOP-based TP of S$2.45.
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Marco Polo Marine Sailing strong through choppy waters
■ 3QFY9/26 revenue of S$35.7m (+13% yoy) and gross profit of S$15m (+7% yoy) were in line with our expectations. ■ Chartering grew on fleet expansion and higher utilisation; yard normalised from an exceptional 2QFY26, but we believe repair demand is still intact. ■ We expect MPM to deliver c.30% core net profit growth in FY26F and view recent share price weakness as a buying opportunity. Reiterate Add.
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| CGS INTERNATIONAL | UOB KAYHIAN |
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Wee Hur Holdings Ltd Strict 10-15% net IRR investment strategy
■ 1H26 core PATMI of S$60m was 90% of our FY26F due to "other gains and losses", excluding which 1H26 was broadly in line at 54% of our FY26F. ■ S$150m-200m capital is to be deployed in next 12 months at 10-15% IRRs. ■ Reiterate Add. We believe WHUR is a beneficiary of Singapore’s construction upcycle as well as strong demand for PBWAs and PBSAs.
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BRC Asia (BRC SP) 9MFY26: Business Momentum Remains Strong
Highlights • BRC reported 9MFY26 revenue of S$1,360m (+21% yoy) and PATMI of S$79m (+26% yoy), making up 77% and 76% of our forecasts, respectively. • BRC’s orderbook remains robust at S$1.69b, despite accelerated project deliveries in 1HFY26, and provides earnings visibility over five years. • Maintain BUY with an unchanged target price of S$5.30.
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| LIM & TAN | |
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OKP Holdings (S$0.72, down 1 cent) reported 1H2026 revenue of S$113.8 million, up 9.0% year-on-year, while gross profit increased by a much stronger 33.1% to S$42.8 million. Gross profit margin expanded 6.8 percentage points from 30.8% to 37.6%, driven by a higher proportion of higher-margin construction projects, improved project execution and projects progressing into stages where more profit could be recognised. Consequently, net profit rose 43.8% to S$27.3 million, while net profit attributable to shareholders increased 43.9% to S$27.5 million. Basic EPS improved from 3.56 Singapore cents to 5.12 Singapore cents. OKP’s market cap stands at S$388.6mln and currently trades at 7.5x forward PE, with a dividend yield of 3.6%. Our target price stands at S$1.03, representing 43% upside form current share price. The construction sector has remained relatively subdued, likely reflecting investor rotation towards higher-growth themes such as technology rather than a deterioration in underlying industry fundamentals. In contrast, the operating backdrop for OKP and the broader Singapore construction sector remains favourable, supported by a sustained pipeline of large-scale public infrastructure projects and continued government investment in transport, housing and connectivity. With strong revenue visibility, improving profitability, substantial net cash and further tender opportunities ahead, we think Singapore’s construction cycle (and OKP) has not yet peaked. We view OKP as our alpha pick in the construction sector, with our target price currently under review.
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