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UOB KAYHIAN |
LIM & TAN |
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SEA (SE US) 3Q26: Solid Delivery Across All Segments; Maintain BUY
Highlights • 9M26 revenue of US$23.47b (+46% yoy) and PATMI of US$1.36b (+15% yoy) are ahead of the run-rate, representing 79% and 81% of our full-year forecasts respectively. • In 3Q26, Shopee’s take rate rose to 15%, Monee’s loan book grew to US$12.6b (+60% yoy), and Garena bookings rebounded to US$890m (+6% yoy). • Maintain BUY with a lower SOTP-based target price of US$123.72, after factoring a de-rating across peers into our SOTP valuation
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UMS Integration Limited ($1.75, up 0.06) has delivered another sterling 3QFY2026 performance as it clocked in a new quarterly sales record of S$95.4 million - its highest quarterly revenue in the past 3 financial years. At its last traded price of $1.75, UMS is capitalized at $1.6bln and trades at 22x FY26 PE, 3.5x price to book and 3% dividend yield. Bloomberg consensus 1 year target price of $3.42 implies a potential doubling in share price over a 1 year period. While prospects are bright and growth is strong, the weakness attributable in global semiconductor and AI related stocks justifies an “Accumulate on Weakness” rating for UMS Holdings Ltd. |
| LIM & TAN | MAYBANK SECURITIES |
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Delfi Ltd ($0.69, up 0.5 cents) provided a business update on the Group’s operations for the third quarter (“9M 2026”) of this year. Despite a challenging operating environment, Delfi delivered a resilient performance driven primarily by continued momentum in our core Own Brands segment. Delfi’s market cap stands at S$421.7mln and currently trades at 10x PE and 1.2x P/B ratio, with a dividend yield of 5.1%. Consensus target price stands at S0.92, representing 41.5% upside from current share price. Given the sharp share price correction (down 15% year to date), we believe Delfi offers an attractive opportunity given Delfi continues to maintain a healthy balance sheet with a net cash position in a hawkish environment and is backed by dividend yield while cocoa hedges secured during the period of elevated prices progressively roll off and are replaced at potentially lower procurement costs. We expect gross margins to recover gradually into FY2027. As such, we have an “Accumulate on Weakness” rating on Delfi.
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Frasers Log. & Comm. Trust (FLT SP) Stabilising distribution
Healthy operating metrics, attractive yield FLT reported 2HFY26 DPU of SGD2.95c, flat HoH/YoY. FY26 DPU of SGD5.90c, -0.8% YoY ahead of MIBGe of 5.84c. Organic growth and ongoing portfolio reconstitution offset the impact of lower top-ups. Occupancy was stable while healthy double-digit positive reversion continued. Gearing rose due to acquisitions while cost of debt inched up. Valuation inched down, driven by commercial assets. We tweak FY27/28E distribution by +0.6%/-0.1% and maintain our TP of SGD1.0 and BUY rating.
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