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UOB KAYHIAN |
PHILLIP SECURITIES |
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Strategy – Monthly Market Radar | Singapore
Highlights • Singapore equities weakened in Oct 26, with the STI falling 5.3% as investors became more sceptical about AI investment returns following Firmus’ cancelled IPO. Plantation, shipyards, technology and banking stocks led the declines, while land transport and REITs proved relatively resilient. • Key events included: a) financial markets have become sceptical on investment returns from AI; b) the yield for 10-year Singapore government bonds slipped 23bp to 2.24%; and c) the Fed kept the Fed Funds Rate unchanged at 3.75% on 28 Oct 26. • Key upcoming events to look out for include: a) the US Midterm Elections, b) ASEAN Summit on 16-18 Nov 26, c) Singapore FinTech Festival on 18-20 Nov, and d) 3Q26 GDP update.
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Nanofilm Technologies International Limited
Temporary consumer slowdown SINGAPORE | TECHNOLOGY (MANUFACTURING)| 3Q26 UPDATE ▪ Nanofilm released 3Q26 update with limited financials. 9M26 revenue and gross profit were within our expectations, at 70%/74% of our FY26e forecasts respectively. ▪ 3Q26 revenue inched up 3% YoY to S$74mn. Advanced Material - Consumer (AMC) revenue dropped 19% YoY to S$39mn, due to delays in key customer Z’s flagship programme and substrate changes. This was offset by a 120% growth in Nanofabrication (NFBU) revenue to S$12mn, driven by a new health sensor programme in smart watches. Industrial Equipment (IEBU) revenue also surged 66% to S$7mn, driven by delivery of new orders of PCB drill bit equipment.
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| MAYBANK SECURITIES | OCBC GROUP RESEARCH |
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Grab Holdings (GRAB US) Operating leverage shifts focus to valuations
3Q results shift the valuation debate Grab’s 3Q result begins to answer the question investors have been asking: can growth convert into durable earnings? Group adjusted EBITDA rose 73% YoY on 27% revenue growth, with all three core segments profitable for the first time. We lift FY26–28 EBITDA forecasts by 8-9% and NPAT by 10- 22%. This improves earnings visibility. Competition, reinvestment and AIled disintermediation remain live risks, but the debate can move beyond proof of profitability to valuation: does the share price reflect the stronger earnings trajectory? We maintain BUY and raise our TP to USD4.60.
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Parkway Life REIT
Raising the bar Rating BUY (as at 03 November 2026) Last Close SGD 4.00 Fair Value SGD 4.50 • 9M26 distribution per unit (DPU) was 13.4% higher year-on-year (YoY) at 13.10 Singapore cents, broadly in line with our expectations with upside risk from revenue sharing • Debt-funded acquisition of three nursing homes in France is expected to be DPU-accretive; long lease term of 12 years with indexed rental escalations provides income visibility • Revised fair value (FV) estimate of SGD4.50 (previously: SGD4.75) on a higher cost of equity input; reiterate BUY |
| DBS GROUP RESEARCH | DBS GROUP RESEARCH |
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SIA Engineering Company Ltd Slight 1HFY27 earnings miss; operating margins improve ahead of expectations.
1HFY27 net profit of SGD81.9mn (-1.7% y/y) slightly below expectations, representing 46%/47% of DBS/consensus FY27F estimates. 1HFY27 operating profit rose 51% y/y excluding a one-off impairment last year, with EBIT margin expanding 2.1ppts Engine and components segment turned profitable earlier than expected, while airframe maintenance margins improved further to 4.7% SAESL expansion costs weighed on JV earnings but should taper from FY28F; resilient MRO demand backdrop supports medium-term growth
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Can Singapore & Malaysia alone justify Grab’s share price? • Grab’s Singapore and Malaysia businesses are worth ~USD3.07/share on our estimates. That is ~6% above the ~USD2.90 share price, with Indonesia, Vietnam, the Philippines, and Thailand valued at zero. • Singapore and Malaysia make up ~58% of FY27F revenue and ~50 of FY27F adj EBITDA, even if we assume all regional costs are carried by Singapore, Malaysia & Indonesia. Adding Indonesia adj EBITDA lifts the value to USD3.67 (~26% above the share price). • With 3Q26 adj EBITDA up 73% y/y, 23% ahead of consensus, we see the de-rating as overdone with Grab trading below 12x PER on non-GAAP EPS vs 16x for Sea Ltd while offering 22% non-GAAP EPS CAGR over FY26-28F vs 21% for CAGR . Maintain BUY, TP USD5.00. Read more... |
