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LIM & TAN |
LIM & TAN |
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CSE Global ($0.885, down 3.5 cents) a global systems integrator providing electrification, communications and automation solutions, announced its interim business updates for the third quarter ended 30 September 2026 (“3Q2026”) and the first nine months of 2026 (“9M2026”). The Group’s 3Q2026 revenue increased 25.4% year-on-year from S$257.7 million to S$323.2 million, primarily driven by stronger contribution from the Electrification business segment in the Americas region. This brings the Group’s 9M2026 revenue to S$884.6 million compared to S$698.6 million as major projects secured over the past year progressed into execution. CSE Global’s market cap stands at S$646.9mln and currently trades at 15x forward PE and has a dividend yield of 2.7%. Consensus target price stands at S$1.80, representing 103.4% upside from current share price. Following the recent share price correction, CSE Global’s valuation has become more reasonable. While its expanding order book provides good earnings visibility, we remain cognisant of geopolitical and policy risks, particularly the possibility of a Democrat-led push to tighten restrictions on the US AI sector, which could dampen data centre investment and indirectly affect demand for CSE’s electrificati on solutions. As such, we have an accumulate on weakness rating for CSE Global.
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Singtel ($4.15, up 0.02) operating revenue, EBITDA and OpCo EBIT grew 5.5%, 8.4% and 8.7% respectively, underpinned by improved performances at NCS, Optus and Digital InfraCo as well as a strong Australian Dollar, partially offset by weakness in Singtel Singapore. In constant currency terms, operating revenue, EBITDA and OpCo EBIT rose 1.4%, 4.1% and 6.2% respectively. Optus’ operating revenue decreased 1.5% mainly due to lower equipment sales which was partially off set by higher mobile service revenue. Mobile service revenue rose 2.9%, supported by higher ARPU from price increases and prepaid customer growth. Wholesale and Enterprise & Business Fixed revenue was stable as higher network sharing revenue was offset by a decline in the enterprise fixed business. At $4.15, Singtel is capitalized at $67.5bln and trades at 20x PE, 5% dividend yield, 2.5x book and 1 year consensus target price of $5.30 implies a potential upside of 28%. We believe Singtel provides a defensive appeal in the current volatile environment due to its attractive and sustainable div yield and decent upside to consensus 1 year target price. Its asset monetization program could also provide dividend upside surprise. We maintain an Accumulate rating on Singtel. |
| MAYBANK SECURITIES | MAYBANK SECURITIES |
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Yangzijiang Shipbuilding (YZJSGD SP) The upcycle has a longer runway
Record orderbook supports elevated profits into 2031 YZJ secured USD6.98bn of orders in 10M26, exceeding its FY26 target by 55%, with USD4.53bn contracted in 3Q alone. Orderbook reached a record USD26.3bn, up 17% from YE25, with deliveries extending into 2031.
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Sea Ltd (SE US) Resilient core; Investment intensity edges higher
Growth remains healthy despite modest pressures Sea’s 3Q26 performance was mixed: revenue beat Street estimates by 6%, while adj EBITDA missed by 6% amid higher Shopee reinvestment & AIrelated costs. Nevertheless, revenue & adj EBITDA grew 43% & 29% YoY resp, with all three core businesses profitable. The outlook is modestly tempered by macroeconomic and FX pressures at Shopee and rising credit costs at Monee. Sea Cloud adds a new investment dimension, although its demand-led approach should limit incremental capital requirements. Near-term capex for internal needs remains an area to watch.
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| MAYBANK SECURITIES | MAYBANK SECURITIES |
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UMS Integration (UMSH SP) The ramp continues
Maintain BUY with a lower TP of SGD2.72 3Q26 revenue and PATMI surged 61% and 102% YoY to SGD95.4m and SGD21m, above our estimates. Revenue from Semicon and Aerospace grew 38% and 43% YoY, respectively. Management expects continued growth momentum from the ramp-up of its new customer and more orders from its existing customer. We thus raise our FY26/27E earnings by 12.2% and 11.0%, respectively. Maintain BUY with a lower TP of SGD2.72, on a lower 25x from 35x FY27E P/E due to sector devaluation and dilution from its recent equity placement.
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Addvalue Technologies (ADDV SP) 1H27 profitability skyrockets
Explosive growth intact – maintain BUY As expected, 1H27 revenue surged 97% YoY, while NPAT jumped 114% to USD4.2m, driven by strong growth in the IDRS segment, where revenue rose more than 340% YoY to USD10.9m. Management remains confident that this momentum will continue over the next 12 months and expects further orders as adoption of its technology increases across commercial and defence industries. We retain BUY with an unchanged TP of SGD0.34, pegged to a 30x FY27E price-to-sales ratio.
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