|
CGS INTERNATIONAL |
UOB KAYHIAN |
|
Hong Kong Exchange Firing on multiple cylinders
■ HKEX reported strong 2Q26 results, with 2Q26 net profit up 21% yoy, beating Bloomberg consensus forecast by 9.6%. ■ 1H26 net profit growth was driven by strong performances across cash, derivatives and commodities, which saw record market volumes in 1H26. ■ The four programmes of Stock Connect, ETF Connect, Swap Connect and Bond Connect also delivered multiple record highs in 1H26. ■ Reiterate Add rating. We marginally raise FY26F-27F EPS by 1.4-1.6%, with our TP rising slightly to HK$620 (from HK$610).
|
China Aviation Oil (CAO SP) 1H26: Misses Expectations Due To Weakness in Business Volume; Recovery Expected in 2H26
Highlights • 1H26 revenue and net profit declined 8.8%/17.3% yoy respectively, making up 45%/34% of our full-year forecasts, mainly due to weaker business volumes. • Stronger contributions from associates, particularly SPIA, helped cushion the weaker core business, with associate earnings rising 67.3% yoy. • Maintain BUY with a 28% lower target price of S$1.88, rolling over our valuation based to 2027F, and pegged to an unchanged 14.5x 2027F PE.
|
| LIM & TAN | MAYBANK SECURITIES |
|
Sasseur REIT ($0.68, unchanged) delivered strong 1H26 results exceeding our estimates, with rental income and DPU making up 52% and 55% of our previous full-year forecasts respectively. DPU rose 10.2% YoY on record first-half portolio sales. Finance costs fell beneath our estimates following the early refinancing of loans in March 2026. Moving forward, DPU will be supported by 1) a weighted average cost of debt at a record low 3.7% 2) shopper traffic up 20.7% YoY alongside the compleion of Hefei’s excinema retail precinct, and 3) contractual 3% p.a. escalation on the fixed EMA component, which underpins c.70% of rental income independent of sales. We reiterate BUY, raising our FY26F and FY27F DPU forecasts and lifing our target price to S$0.93 from S$0.91. Sasseur REIT’s market cap stands at S$872.7mln and currently trades at 0.9x PB, with a forward dividend yield of 9%, Our target price is $0.93, represenƟ ng 34.8% upside to current share price. Based on the factors above, we continue to recommend a BUY recommendation on Sasseur REIT.
|
Olam Group (OLG SP) Resetting earnings, not the thesis
Earnings reset is painful; Trim TP but maintain BUY We cut FY26–28 PATMI by 34–47%, reflecting a substantially weaker 1H26 base, a sharper normalisation in OFI earnings, & a major reset to our OGH assumptions. We cut FY26 OFI EBIT by 12% and now forecast an OGH EBIT loss of SGD20m, vs our previous estimate of SGD79m in profit. Despite the NPAT cuts, maintain BUY, with a TP of SGD1.45 (from SGD1.60). The impact on valuation is partly cushioned by a 50bps reduction in our WACC to 11.5%. Execution, rather than valuation, is now the key hurdle to a re-rating.
|
| DBS GROUP RESEARCH | |
|
Kimly Ltd Mainboard upgrade, a step towards better visibility and liquidity.
Announced plans to transfer its listing from the Catalist Board to the Mainboard Transfer is likely to be completed in Feb 27 post the EGM, which is expected to be held in late Jan 27 Mainboard listing should improve visibility and liquidity, alongside active investor engagement Maintain BUY and TP of SGD0.52. |
