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LIM & TAN |
LIM & TAN |
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Top Glove Corp (S$0.265, down 1 ct) announced its financial results for the Fourth Quarter (4QFY2026) and Full Financial year 2026 (FY2026) ended 31 August 2026. The Group sustained its positive momentum throughout FY2026 to deliver impressive profit growth, despite a challenging business environment, highlighting its increased global competitiveness. Top Glove is capitalized at S$2.1bln and trades at 20.4x P/E and 1.3x P/B, with a dividend yield of 1.9%. Consensus TP of S$0.28 represents a 3.7% potential upside. Top Glove delivered a robust set of FY26 results with top-and-bottom line growth due to increased demand for its products. Faced with an earnings recovery but with valuations creeping up and near-term cost pressures coupled with limited upside to consensus estimates, we have an Accumulate on Weakness recommendation on Top Glove.
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We highlight the salient points from Union Steel Holdings Limited’s (S$0.44, unchanged) FY2026 Annual Report for the financial year ended 30 June 2026. The Group recorded its sixth consecutive year of profitability despite a challenging operating environment characterised by geopolitical uncertainty, competitive pricing pressure and slower project execution. While revenue increased marginally, profitability declined due to weaker margins in the Engineering segment and a less favourable sales mix in the Metals segment. Union Steel’s market cap stands at S$52mln and currently trades at 7.7x PE and 0.5x PB, with a dividend yield of 1.1%. While we believe a recovery in Engineering margins and steel leasing demand will be important catalysts for earnings improvement in FY2027, we remain positive on the broader construction sector’s outlook. We view the recent pullback in construction-related share prices as a healthy retracement following their strong performance, rather than a deterioration in sector fundamentals, and remain optimistic about the sector’s medium-term growth prospects in the face of a construction supercycle. |
| UOB KAYHIAN | UOB KAYHIAN |
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United Hampshire US REIT (UHU SP) Turning Around From Retail Apocalypse To Retail Renaissance
Highlights • Recent surveys indicate that young Americans have renewed their interest in spending a substantial amount of their time at retail malls. • Rents at strip centres are rising due to limited new construction and expansion by grocery, discount and service-oriented retailers. Green Street forecasts annual strip centre supply growth of only 0.3% during 2026-30. • Valuation is attractive with a 2027 DPU yield of 10.9% (Kimco Realty: 5.1% and Regency Centers: 4.2%). Maintain BUY. Target price: US$0.63.
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Plantation India's Duty Cut: Palm To Rebound Amid The Festive Window
Highlights • India cut the all-in import duty on crude palm oil and crude soyoil to 11% from 16.5% on 24 September, and on crude sunflower oil to 5.5%. At August's prices, palm oil's duty-paid discount to sunflower oil narrowed by US$95 per tonne, while its discount to soyoil barely changed. • Sunflower oil cannot make full use of its new advantage this quarter. India's sunflower oil imports fell to 103,000 tonnes in September, the lowest since Apr 22, while palm oil imports rose to a seven-month high of 810,000 tonnes. • We estimate India's port and pipeline stocks at 2.0m tonnes on 1 October, or 40 days of offtake, and Malaysian palm oil stocks at a record 3.3m tonnes at end-September. Maintain OVERWEIGHT.
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| DBS GROUP RESEARCH | |
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Soilbuild Construction Group Multi-year construction pipeline remains supportive
Investment Overview Comprehensive suite of construction services. Soilbuild Construction Group began as a construction company in 1976 and has since evolved to offer a full spectrum of real estate services including construction, civil engineering, design and build, turnkey construction, project management consultancy, procurement, mechanical and electrical installation, as well as precast and prefabrication. The company’s diverse portfolio spans across industrial buildings, business parks, residential developments, conservation houses, schools, and churches. Over the years, Soilbuild has built a strong reputation for securing major contracts across both the private and public sectors, including HDB, LTA, and PUB.
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