Latest Posts By Joelton
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| 09-May-2026 09:34 |
Riverstone
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Riverstone go go go!
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Riverstone Holdings reports lower earnings of RM41.1 mil for 1QFY2026, down 27.1% y-o-y Riverstone Holdings (SGX:AP4) has reported a net profit to equity holders of RM41.1 million for 1QFY2026, ended March 31, 2026, down 27.1% y-o-y. According to Riverstone, 1QFY2026 was a challenging quarter as the strengthening of the Malaysian Ringgit against the US dollar weigh on its revenue. Despite stable sales volume for both cleanroom and healthcare segments, Riverstone&rsquo s revenue was down 15.1% y-o-y to RM214.3 million. Meanwhile, gross profit declined 24.6% y-o-y to RM62 million with gross profit margin at 28.9% in the same period. Riverstone mentions that it continues to generate positive operating cash flows in the quarter. Cash and cash equivalents grew RM69.8 million to RM700.2 million as at March 31, against RM630.4 million as at December 31, 2025. The Group adds that long term outlook remains positive, supported by sustained demand from its cleanroom business. While the ongoing geopolitical tensions disrupted global raw material supply chains, its long-standing supplier relationships have allowed it to secure raw material supply through June. &ldquo While gloves represent a small portion of our customers' overall production costs, they are a critical input. Our customers have been working closely with us to navigate the current supply tightness and ensure timely delivery of orders. We remain resilient and cautiously optimistic about the long-term business growth prospects,&rdquo says Wong Teek Son, executive chairman and CEO of Riverstone. Shares of Riverstone closed 3.5 cents higher, or 4.79% up at 76.5 cents on May 8 |
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| 09-May-2026 09:33 |
Jumbo
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Jumbo
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Jumbo Group reports lower earnings of $6.2 mil for 1HFY2026, down 22.3% y-o-y Jumbo Group (SGX:42R) has reported lower earnings of $6.2 million in 1HFY2026, ended March 31, down 22.3% y-o-y. Revenue increased 7.9% y-o-y to $105.1 million in the period, driven by higher revenue contribution from its Singapore operations. Revenue from the Singapore operations was up by 9.9% y-o-y to $92.7 million, mainly due to revenue contributions from recently opened outlets, with revenue from existing outlets remaining broadly stable. Revenue from its People&rsquo s Republic of China (PRC) operations increased by 11.5% y-o-y to $10.7 million. The higher topline achieved was due to continued targeted marketing initiatives and customer engagement efforts, which helped to support higher dining demand. Cost of sales, which comprised raw materials and consumables, increased 6.9% y-o-y to $35.9 million in 1HFY2026, in line with higher revenue. Operating expenses increased mainly due to higher employee benefits expenses, operating lease expenses, utilities expenses and other operating expenses. Jumbo Group&rsquo s board of directors has declared a tax exempt one-tier interim cash dividend of 0.5 cents per share. &ldquo Amid cost pressures and intense competition, we will remain focused on strengthening productivity, sharpening our offerings and building a more efficient platform for sustainable growth,&rdquo says Ang Kiam Meng, executive chairman and and CEO of Jumbo Group. Barring any unforeseen circumstances, Jumbo Group maintains a cautious outlook over the next 12 months. Shares of Jumbo Group closed unchanged at 28 cents on May 8. |
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| 09-May-2026 09:32 |
BRC Asia
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BRC Asia - A dark horse to be discovered
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BRC Asia reports record half year revenue of $931 mil in 1HFY2026, net profit up 24% y-o-y to $52 mil BRC Asia (SGX:BEC) has reported a net profit after tax of $52.0 million for 1HFY2026 ended March 31, an increase of 24% y-o-y. Revenue grew 30% y-o-y and stood at a record of $931.0 million on a half year basis during the period. However, the growth was partially offset by lower steel prices, in line with a broad decline in global steel prices during the period. Fabrication and manufacturing segment contributed $772.0 million, up 33% y-o-y, attributed to higher domestic construction deliveries and contribution from its Malaysian subsidiary, Southern Steel Mesh Sdn Bhd (SSM), acquired back in last August. Trading segment increased 20% y-o-y to $159.0 million, boosted by increase in international trade. Gross profit saw an increase of 38% y-o-y to $93.3 million, which grew faster than its revenue due to higher tonnage of value-added prefabricated products which carries favourable margins. Provision for onerous contract fell to $4.5 million during the period, compared to $7.7 million in 1HFY2025, which helps to further lift its gross profit. Gross profit margin improved to 10.0% from 9.4%. Distribution expenses rose 66% to $7.0 million and administrative expenses increased 32% to $17.5 million due to higher operational costs and expense consolidation of SSM. Finance costs fell 52% y-o-y to $1.8 million, due to lower borrowings and a decline in interest rate. Earnings per share rose to 18.95 cents in 1HFY2026 from 15.33 cents in 1HFY2025. Net assets attributable to owners of the Company stood at $530.2 million on March 31 with net asset value per share of $1.93.BRC Asia&rsquo s board has proposed an interim tax-exempt cash dividend of 8 cents per ordinary share for 1H FY2026. This translates to a payout ratio of 42% and a dividend yield of 4%. &ldquo With our market leadership and execution track record in Singapore' s reinforcing steel sector, we are well-positioned to participate fully in the emerging industry tailwind as it progresses,&rdquo says Seah Kiin Peng, executive director and CEO of BRC Asia. Shares of BRC Asia closed 25 cents higher, or 5.62% up at $4.70 on May 8. |
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| 09-May-2026 09:31 |
Beng Kuang
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Beng Kuang Marine
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UOB KH Beng Kuang Marine (BKM SP/BUY/S$0.570/Target raised to S$0.750)
By Tang Kai Jie & Heidi Mo UOBKH
1Q26: More Positive On Bullish Outlook Raise Target Price By 17%
Strong revenue growth and positive outlook. BKM reported 1Q26 revenue of S$25.7m (+7.7% yoy) and net profit of S$2.8m (-12.7% yoy). Growth was driven by infrastructure engineering, while margins weakened due to project mix. Management sees positive signs for 2Q26. We also expect more revenue and profit contribution in 2H26 following ASOM consolidation.
Orderbook provides solid visibility. BKM secured around S$51.2m of 2026 revenue in 1Q26, with a total orderbook of S$55.9m, largely anshored by ASOM. Management also expects additional upside from FPSO renewals in West Africa.
Strong FPSO pipeline and renewals. BKM expects to finalise West Africa FPSO renewals worth about S$120m over three years over the next few months, and is currently working on five FPSO projects in Guyana and potentially four more in Central America.
Maintain BUY with a higher target price of S$0.75, implying 31.6% upside. Our target price is pegged to 14.0x 2027F PE, +1.5SD above historical averages, compared to 12.1x 2027F PE previously, as we expect re-rating to continue as BKM gains traction from participation of more institutional and strategic shareholders.
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| 09-May-2026 09:30 |
Beng Kuang
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Beng Kuang Marine
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Lim and Tan Securities raises Beng Kuang Marine target to 69 cents Nicholas Yon of Lim and Tan Securities has reinforced his &ldquo buy&rdquo call on Beng Kuang Marine by raising his valuation of the counter to 69 cents per share in his May 8 report. In his previous initiation report on March 31, Yon valued Beng Kuang at 53.5 cents per share. His confidence comes on the back of Beng Kuang&rsquo s results for 1QFY2026 ended March 31 being &ldquo in line&rdquo with expectations. For the period, Beng Kuang reported $2.8 million in net profit, representing a 12.7% y-o-y decrease but 9% q-o-q increase. Meanwhile, revenue rose y-o-y by 20.3% to $25.7 million. The way he sees it, Yon believes Beng Kuang&rsquo s first quarter performance is a reflection of healthy operational activity, suggesting that the y-o-y profit decline is likely due to spillover delays from 4QFY2026 and he does not expect further delays moving forward. Noting that gross profit margin was dropped by 9.9 percentage points y-o-y to 26.5%, he suggests that this is not due to a weakening of fundamentals, but more of a feature of the offshore and marine (O& M) sector where O& M engineering businesses often experience quarterly earnings volatility depending on project stages, customer delivery schedules and work composition. Yon, presumably heartened by Beng Kuang&rsquo s orderbook and its soon-to-be wholly-owned subsidiary Asian Sealand Offshore and Marine (ASOM), states that revenue visibility is &ldquo healthy&rdquo and he expects earnings momentum to strengthen in the second half of the year. He points out three sources for his orderbook optimism. Firstly, Beng Kuang has secured around $56 million of contracts as at 1QFY2026, with around $51 million of these to be recognised in 2026. This is augmented by ASOM&rsquo s $27.6 million of floating, production, storage and offloading (FPSO) and floating, storage and offloading (FSO) related contracts, where it was noted that around 80% of these were FPSO-related work and recurring in nature. In addition, subsidiaries PT Nexus Engineering Indonesia and International Offshore Equipments are providing long-term earnings visibility through fabrication, shipbuilding and offshore projects extending into FY2027 and FY2028. Another point that is reinforcing Yon&rsquo s confidence is institutional interest and insider accumulation of shares in the company. Institutional investors Amova Asset Management and Tokio Marine Life Insurance Singapore acquired shares from executive director Chua Meng Hua. Meanwhile executive chairman Chua Beng Yong and CEO Yong Jiunn Run, increased their stakes in the company to 4.92% and 5.30% respectively. To Yon, this signals management&rsquo s confidence in the company. &ldquo More importantly, the transaction strengthens Beng Kuang Marine&rsquo s institutional shareholder base at a time when offshore and FPSO-related activity continues to improve globally,&rdquo he adds. On the backdrop of increased institutional participation, Yon values the counter at 13 times of forward FY2027 P/E or 69 cents. |
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| 08-May-2026 10:28 |
Kimly
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How much TP?
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Seeing steady growth ahead, DBS initiates ' buy' call on Kimly with 52 cent target price Chee Zheng Feng of DBS Group Research has initiated coverage of coffeeshop operator Kimly with a " buy" call and 52 cents target price, which is valued at a " reasonable" 18x forward PE and 4% forward yield, " broadly in line with defensive SGX consumer names." According to Chee in his May 7 note, Kimly is able to drive growth via a combination of securing new outlets, acquisitions and joint ventures. By tapping on its central kitchens, Kimly is able to offer competitive pricing relative to competitors. With net cash of $63 million, Kimly is also well positioned to acquire or form joint ventures with other " stressed" operators. The company has also expanded into what is seen as the " under penetrated" halal coffee shop segment, part of an overall market estimated to be worth $1 billion. Chee believes that Kimly can sustain low-single digit top line growth through steady 2-3 outlet additions annually, which is likely to translate into earnings growth of between 3 and 5%. The company is growing via a combination of new tenders, joint ventures and acquisitions. According to HDB, there are 43 new coffee shops slated for completion between 2026-2030, providing a near-term growth runway. " Beyond this, we see potential for consolidation across the broader F& B industry consisting of coffee shops, food courts, and industrial canteens, which is highly competitive and fragmented," says Chee. From his perspective, smaller players without central kitchens are likely to face significant profitability pressure from rising labour costs and limited pricing power. " We are also seeing an increasingly trend of coffee shop operators trying to monetise their assets ahead of retirement. This presents an opportunity for Kimly to acquire these assets," says Chee. As a listed company, Kimly can raise more capital with placements and other means to fund such deals. Kimly shares closed at 40 cents on May 6. |
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| 08-May-2026 10:25 |
AIMS APAC Reit
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AIMSAMPI Reit
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Aims Apac Reit H2 DPU rises 4.1% to S$0.0513 on higher rental, recoveries Revenue is up 4.1% at S$97 million for the period [SINGAPORE] Aims Apac Real Estate Investment Trust (AA Reit) posted on Thursday (May 7) that its distribution per unit (DPU) rose 4.1 per cent to S$0.0513 for its second half ended Mar 31, from S$0.0493 the year before. Distributions to unitholders increased 4.6 per cent year on year to S$42 million, from S$40.2 million, largely attributed to higher net property income (NPI) and lower borrowing costs. The distribution will be paid out on Jun 29. Revenue was up 4.1 per cent at S$97 million for the half year, from S$93.1 million in the year-ago period. The increase was due to higher rental and recoveries from AA Reit&rsquo s logistics, warehouse and industrial properties such as 27 Penjuru Lane and 8 & 10 Pandan Crescent, as well as higher income from 7 Clementi Loop following the completion of asset enhancement initiatives. Lower property expenses arising from lower electricity expenses and cost efficiencies were also cited as a factor. This was supported by rental income from the acquisition of 2 Aljunied Avenue 1, completed in November last year, and partially offset by the loss of revenue from the divestment of 3 Toh Tuck Link. NPI grew 10.3 per cent on the year to S$73 million for the half year, from S$66.2 million, mainly driven by the increase in revenue and decrease in property operating expenses. Meanwhile, for the full year ended Mar 31, DPU was higher at S$0.0985, versus S$0.096 the prior year. Distributions to unitholders rose 3.1 per cent to S$80.6 million, from S$78.2 million previously. Full-year revenue was 2.2 per cent higher at S$190.7 million from S$186.6 million, while NPI rose 5.7 per cent to S$141.3 million from S$133.7 million. Russell Ng, CEO of the manager, said: &ldquo Beyond near-term performance, we are actively positioning our portfolio for the next phase of growth. We see a compelling long-term opportunity in the data centre sector and believe our Australian assets are uniquely placed to participate. &ldquo We are pursuing new data centre opportunities via three levers: maximising the redevelopment or conversion potential of our existing assets, targeting land-rich properties in strategic infill locations near energy infrastructure, and forming partnerships with institutional data centre operators.&rdquo He added that the Reit will remain focused on delivering &ldquo stable income growth&rdquo , while pursuing acquisitions and advancing its development pipeline. The manager noted that the portfolio achieved a positive rental reversion of 7.7 per cent across 98 leases over the financial year. Portfolio occupancy remained stable at 93.6 per cent on a committed lease basis, it was 96.8 per cent. Aggregate leverage improved to 26.8 per cent as at Mar 31, down from 28.9 per cent the year before. Units of AA Reit : O5RU +3.29% closed flat at S$1.52 on Wednesday. |
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| 08-May-2026 10:24 |
HongkongLand USD
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Hongkong Land USD
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Hongkong Land shares up 3.6% after report of multibillion-dollar Marina One bid The high-rise complex&rsquo s owner M+S has reportedly priced the asset at about S$5.7 billion [SINGAPORE] Shares of Hongkong Land : H78 +4.52%rose 3.6 per cent on Thursday (May 7), after a Bloomberg report that it and CapitaLand were among possible bidders for the Marina One high-rise complex. The counter rose to as high as US$8.26 as at 10.14 am, adding US$0.29, with more than one million shares changing hands. Marina One owner M+S, a joint venture between Temasek and Malaysian sovereign wealth fund Khazanah Nasional, has priced the asset at about S$5.7 billion, according to the Bloomberg report. The Business Times reported in January that Khazanah and Temasek were considering a sale at S$5 billion to S$6 billion. Marina One includes 1.88 million sq ft of office space as well as 140,000 sq ft of retail space. There are also apartments. Deliberations around Marina One are still at an early stage and may not result in a transaction. In March, Hongkong Land said it was ready to increase new investments after recycling US$3.6 billion of capital to boost earnings and shareholder returns. Speaking to BT, the property group&rsquo s chief financial officer Craig Beattie said it had ample balance-sheet headroom for new investments after recycling 90 per cent of its US$4 billion target and cutting net debt by 30 per cent. He added that Hongkong Land was &ldquo very positive&rdquo on Singapore and was looking to expand through its private fund or by pursuing development opportunities with a particular focus on &ldquo prime Central Business District (assets) in Singapore&rdquo . DBS in March set a US$10.17 target price for the property group. It stated that its share buyback programme and continued capital recycling was expected to provide near-term support to the share price. Hongkong Land has increased its share buyback programme by US$300 million to a total of US$650 million. DBS also noted that the development of a fund management platform could support a higher valuation over time. This followed Citi in February raising its target price for the stock from US$7.15 to US$9.75, in anticipation of Hongkong Land launching an S$8.2 billion Singapore private fund. The fund is focused on managing prime commercial property assets in the Republic. Hongkong Land seeded the Singapore Central Private Real Estate Fund with its interests in Marina Bay Financial Centre Towers 1 and 2, One Raffles Quay, One Raffles Link and Marina Bay Link Mall. Citi also said the fund was expected to bring in US$25 million to US$30 million in initial profit. However, Morningstar maintained a fair value estimate of US$7.40, believing that the then share price of US$8.67 was &ldquo overvalued&rdquo . It cited the 0.64 price-to-book ratio being above the 10-year historical average of 0.37. |
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| 08-May-2026 10:22 |
StarHub
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Starhub
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StarHub Q1 net profit tumbles 81.3% to S$5.9 million as consumer business slides across the board Mobile segment subscriptions fall to 2.2 million, from 2.4 million in the year-ago period, amid softer SMS usage revenue [SINGAPORE] StarHub : CC3 -0.99% reported a net profit of S$5.9 million for its first quarter ended Mar 31, down 81.3 per cent from S$31.8 million in the year-ago period. Total revenue for the three months declined 6.1 per cent to S$507.3 million from S$540.5 million in Q1 2025, the group said on Thursday (May 7). The consumer business logged declines across the board, as revenue fell 10 per cent to S$228.6 million for the quarter, from S$254 million previously. This was led by the mobile segment, which posted a 10.9 per cent decline in revenue to S$124 million for Q1 2026, from S$139.2 million in the year-ago period. The mobile segment&rsquo s lower revenue was due to softer roaming alongside usage revenues for value-added service and SMS. Subscriptions fell to 2.2 million from 2.4 million in Q1 2025, while the average revenue per user (ARPU) was stable on the year at S$21. Meanwhile, the broadband segment&rsquo s revenue declined 8.7 per cent on the year to S$58.8 million from S$64.4 million, mainly due to lower subscription revenue. Subscriptions dropped to around 571,000 from 577,000 in Q1 2025, as ARPU fell to S$33 from S$36. Revenue for the enterprise business fell 4.8 per cent to S$139.4 million, from S$146.5 million in the previous corresponding period, due to the timing of project recognitions from the managed services segment, which posted a 10.8 per cent drop in revenue to S$69.8 million from S$78.3 million. This was partially offset by higher enterprise connectivity and carrier and voice revenues. The former posted a 1.7 per cent year-on-year increase in revenue for Q1 and the latter recorded 2.6 per cent higher revenue. Despite revenue declines, the order book for the enterprise business grew more than 50 per cent on the year amid demand for digital infrastructure and artificial intelligence. Cybersecurity services revenue rose 22.4 per cent year on year in Q1, to S$77.7 million from S$63.5 million, due to project recognition timings. The top-line declines led to a 22.5 per cent slide in earnings before interest, taxes, depreciation and amortisation (Ebitda) to S$77.7 million, from S$100.2 million previously &ndash alongside higher depreciation and amortisation and net finance costs, but was partially offset by lower tax expense. The telco said Ebitda service margins fell 4.1 percentage points to 16.5 per cent. The group added that it is identifying areas for additional cost savings, as part of cost structure rightsizing. StarHub&rsquo s free cash flow stood at S$26.6 million, with a cash position of S$867.2 million and a net-debt-to-Ebitda ratio of 2.09 times. Its fixed rate debt was around 80 per cent of total debt. The counter ended Wednesday 1 per cent or S$0.01 down at S$1.01. |
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| 08-May-2026 10:21 |
UOB
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UOB
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UOB aims to double wealth income to at least S$2.5 billion by 2030 Q1 profit slips 4% CEO Wee Ee Cheong said on Thursday that the completion of its Citi integration gives the bank a &ldquo long runway&rdquo for organic wealth growth across Asean [SINGAPORE] UOB has set a target of doubling its wealth management income by 2030, as it looks to deepen penetration of what it sees as an &ldquo underpenetrated&rdquo affluent segment across Asean to drive its next phase of growth, deputy chairman and chief executive officer Wee Ee Cheong said on Thursday (May 7). The target will be benchmarked against the figures for the 12 months ended Dec 31, 2025. In FY2025, UOB&rsquo s wealth management income rose to S$1.28 billion, from S$1.12 billion a year earlier. The latest goal implies that the lender is aiming for wealth management income of at least S$2.5 billion by 2030, following the completion of its acquisition of Citigroup&rsquo s retail banking assets in four Asean markets. &ldquo Over the past three years, our focus has been on integrating the Citi portfolio and bringing everything into a single, unified platform,&rdquo Wee said at the bank&rsquo s first-quarter results briefing. &ldquo That work is largely completed.&rdquo He was referring to UOB&rsquo s S$4.9 billion acquisition of Citigroup&rsquo s retail banking businesses in Indonesia, Malaysia, Thailand and Vietnam. The deal, first announced in 2022 and completed in 2025, doubled UOB&rsquo s customer base in those four markets to 8.5 million. Wee acknowledged that the integration had been &ldquo not as straightforward&rdquo as initially expected, noting that the bank had to continue operating Citi&rsquo s platforms while simultaneously building its own systems, a process that cost an &ldquo arm and leg&rdquo . However, he said the integration work has now been completed, with the associated costs already recognised in previous quarters. Looking ahead, he sees &ldquo significant opportunities&rdquo in wealth management, supported by &ldquo a large and increasingly affluent customer base that is underpenetrated&rdquo . &ldquo This gives us a long runway for sustainable, organic growth,&rdquo said Wee. Investors will begin to see income from the wealth business &ldquo picking up&rdquo over the coming quarters, he added, as the lender works towards its 2030 target. To support its wealth ambitions, UOB plans to expand hiring for wealth-related roles such as relationship managers, although overall headcount is expected to remain broadly stable. On inorganic growth opportunities such as acquisitions, Wee said the bank is not ruling them out, though valuations are likely to remain &ldquo very high&rdquo . &ldquo Other people don&rsquo t have (our) customer base,&rdquo he said. &ldquo I have the customer base &ndash that is a key differentiator.&rdquo His remarks came just days after OCBC announced on Monday that it would acquire HSBC Indonesia&rsquo s retail and wealth business, with the transaction expected to close in the second quarter of 2027. DBS, OCBC and UOB had all reportedly been among the bidders for the business. Elaborating on UOB&rsquo s acquisition strategy, chief financial officer Leong Yung Chee said the lender remains &ldquo always on the lookout for opportunities, whether previously or going forward&rdquo , but added that any deal must &ldquo check quite a few boxes&rdquo . These include whether an acquisition brings desired capabilities, fills business or geographical gaps, and comes at the &ldquo correct&rdquo price. Integration costs must also be factored in alongside acquisition costs, Leong added. Q1 profit slips on lower rates The lender on Thursday reported a 4 per cent decline in net profit to S$1.44 billion for the three months ended Mar 31, 2026, although the results beat the S$1.39 billion consensus estimate in a Bloomberg survey. Net interest income fell 4 per cent to S$2.32 billion as lower benchmark rates weighed on margins. Net interest margin narrowed by 18 basis points to 1.82 per cent, from 2 per cent a year earlier, amid lower benchmark rates in Singapore and Hong Kong. Net fee income slipped 8 per cent year on year to S$637 million, easing from the previous year&rsquo s record high as investment banking and loan-related activities moderated amid cautious, risk-off sentiment. Other non-interest income fell 17 per cent year on year to S$462 million, mainly due to softer trading and investment income. Total income declined 6 per cent to S$3.42 billion in Q1, from S$3.66 billion a year earlier. Management maintained its FY2026 guidance, unchanged from three months ago. The bank continues to expect low single-digit loan growth, a full-year net interest margin of between 1.75 per cent and 1.8 per cent, and high single-digit fee growth. Guidance for operating cost growth, at low single digits, and credit costs of between 25 and 30 basis points, was also unchanged. Customer loans rose 4 per cent year on year to S$354 billion in Q1. On interest margins, Leong said the bank&rsquo s house view remains that the US Federal Reserve will cut rates once in 2026, though the relationship between US rates and Singapore rates has &ldquo significantly decoupled&rdquo . UOB is &ldquo a lot more sensitive&rdquo to Sora, which has more &ldquo limited downside&rdquo , he said, adding that the lender remains on track to meet its net interest margin guidance. Addressing the ongoing Middle East conflict, Wee said the bank&rsquo s direct exposure to the region is &ldquo quite insignificant&rdquo , with Leong putting Middle East loan exposure at about 2 per cent of the bank&rsquo s total loans. However, Wee noted that second-order effects from elevated oil and energy prices could weigh more heavily on small and medium-sized enterprises (SMEs), although the bank is still conducting stress tests to assess the potential impact. On whether UOB may add provisions to guard against the formation of new bad loans, Leong said the bank is continuing to monitor developments closely. He noted that UOB&rsquo s general provision coverage has remained at 1 per cent for three straight quarters, after the lender pre-emptively added more than S$600 million in provisions in the third quarter of FY2025. UOB&rsquo s non-performing loans ratio improved to 1.5 per cent in Q1, from 1.6 per cent a year earlier. New non-performing asset formation &ndash largely on real estate exposure in Greater China &ndash fell to S$341 million in the quarter, from S$400 million a year ago. At the briefing, Wee also stressed that the bank would continue supporting its SME customers, after being asked whether UOB would de-risk its SME portfolio. &ldquo In fact, this is the time &ndash especially the SMEs &ndash you have to stand by them,&rdquo he said. &ldquo This is not the time to de-risk.&rdquo UOB was the second of Singapore&rsquo s three local banks to report first-quarter results, after DBS released its numbers on Apr 30. OCBC is due to report on Friday. |
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| 08-May-2026 10:21 |
UOB
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UOB
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UOB gunning to double wealth income by 2030 United Overseas Bank (UOB) is aiming to double its wealth income over the next five years, says UOB&rsquo s deputy chairman and CEO Wee Ee Cheong during the bank&rsquo s earnings briefing for 1QFY2026 on May 7. &ldquo Our ambition is clear, to double wealth income by 2030 through discipline, organic execution, platform, people and solution,&rdquo Wee says, noting that the space has grown increasingly competitive. UOB&rsquo s net fee and commission income from its wealth management business grew by 18% y-o-y from $698 million in FY2024 to $822 million in FY2025. UOB&rsquo s local rivals, DBS Group Holdings and Oversea-Chinese Banking Corporation (OCBC) have been making inroads on wealth management as well. During DBS&rsquo s earnings briefing for 1QFY2026, the bank&rsquo s group executive and group head of consumer banking and wealth management Shee Tse Koon told reporters that the bank&rsquo s wealth arm is in &ldquo growth mode&rdquo and that there is a &ldquo rapid growth of wealth within Asia.&rdquo &ldquo So, we&rsquo re hiring on all fronts across all three segments, [DBS] Treasures, Treasures Private Client and Private Bank.&rdquo On May 4, OCBC announced that its Indonesian subsidiary, PT Bank OCBC NISP Tbk (OCBC Indonesia) was acquiring PT Bank HSBC Indonesia (HSBC Indonesia)&rsquo s retail banking and wealth management operations in Indonesia for a premium of $480 million. The deal is expected to raise OCBC Indonesia&rsquo s assets under management (AUM) by 25%, grow its credit card balances by more than 150% and raise its wealth management talent pool by an additional 1,300 staff. Protecting customers over growing AUM Wee, however, says UOB will be adopting a more cautious approach to grow their wealth management income. Instead of trying to draw in capital quickly to boost their AUM numbers, UOB wants to build up a long-term relationship with their customers and win their trust. This means the bank is willing to forgo some fee income in the short-term if it can help strengthen customer loyalty. &ldquo [Our] relationship managers will target new customers but my existing customer base of eight over million. This is where the low hanging fruit is and this is why we are very, very confident,&rdquo Wee says. &ldquo The next few quarters, I cannot tell you the number, [but] we will definitely increase the AUM.&rdquo &ldquo We are conservative. We want to protect our customers. You don&rsquo t just ask them [and] take [their] money, because today the environment is very uncertain. I would rather they be safe. We can earn less fees but I want them to be safe. When opportunity comes? This is where the potential is.&rdquo That applies to the bank&rsquo s view on using mergers and acquisitions to grow its wealth business as well. While Wee did not rule out making any acquisitions down the line, he emphasised that any acquisition target would have to fit with the bank&rsquo s overall strategy. &ldquo Everybody is focusing on wealth, right? [If] there is opportunity, I believe the price will be very high. [At the] end of the day, [it has] got to make sense. What makes sense to me at this point? I&rsquo m not ruling out inorganic growth,&rdquo Wee says. For UOB, deciding whether to pull the trigger on an acquisition goes beyond looking at the sticker price of a deal, says the bank&rsquo s group CFO Leong Yung Chee. &ldquo Whether the opportunities make sense, it has to check quite a few boxes,&rdquo Leong says. &ldquo Whether it meets our strategy? Does it meet certain capabilities that we want? Are they filling certain business gaps that we don&rsquo t have, or geographical gaps? Ultimately, is the price to pay, correct?&rdquo &ldquo It&rsquo s not just a dollar price. Don&rsquo t forget, there&rsquo s also integration cost. Going forward, do you think the cost synergies and revenue synergies are going to make sense for you? So, the calculation isn&rsquo t just about the transaction price, but the cost of the entire project itself has to make sense.&rdquo Second order impact from Middle East may affect SMEs Any first order impact to UOB&rsquo s book from the conflict in the Middle East is limited, given that loans for companies with direct geographical exposure make up less than 2% of its total book, says Leong. However, second order effects from the crisis may affect the bank&rsquo s small- and medium-sized enterprise (SME) customers. While the bank is currently undertaking stress analysis, things are still &ldquo too early to tell&rdquo at this point because everything is &ldquo fluid&rdquo , says Wee. Leong notes that the bank&rsquo s focus is on the second order effects, which may impact energy vulnerable industries such as transport, basic materials, utilities and agriculture. &ldquo We&rsquo re looking at assessing how much of these industries and clients who are in these industries may be affected as a result.&rdquo The third order is harder to determine given that there is no clear view on how long this conflict will take. &ldquo There is potential impact on overall Asia' s economic growth environment, inflationary practices and so on. So that actually requires much further stress scenarios,&rdquo he says. UOB, which considers interest rates, property price indices, unemployment rates, consumer price indices, gross domestic products and equity price indices in its macro-economic variable (MEV), says it is starting to take some of the uncertainties from the Middle East into account. Given that tensions began in late February, Leong says the bank will continue to monitor the situation. Any changes to the MEV should be adjusted in the following quarters, he adds. &lsquo Not the time to de-risk&rsquo Unlike DBS, which has chosen to de-risk its SME and consumer franchise in India and Indonesia, UOB prefers to stay put. The bank, which also has a presence in Indonesia, says the country&rsquo s loans make up 3% of its total book. &ldquo It&rsquo s easy to talk about de-risking. [At the] end of the day, it&rsquo s the origination, you look at the customer, employers, employment track record&hellip We' re still growing. You look at the consumer, look at the mortgages&hellip This is a time especially [for] SMEs, you have to stand by them,&rdquo says Wee. &ldquo This is not the time to de-risk. |
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| 08-May-2026 10:04 |
SingPost
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SingPost
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SingPost partners Europe&rsquo s Asendia to enhance cross-border e-commerce delivery Local customers will be able to sell and scale their online retail business across new markets [SINGAPORE] Singapore Post (SingPost) : S08 -1.32% entered into a strategic partnership with European cross-border e-commerce and mail solutions provider Asendia on Thursday (May 7). The partnership aims to improve cross-border e-commerce logistics capabilities, which will enhance delivery performance, scalability and market access for businesses shipping into and out of Singapore and the wider Asia-Pacific region. Local customers of the Singapore postal and e-commerce logistics provider will be able to sell and scale their e-commerce business across new markets as they gain access to Asendia&rsquo s international network. The joint venture of French and Swiss national postal operators delivers to over 200 destinations across Europe, North America, South America, the Middle East and Oceania, supported by last-mile partners. Asendia&rsquo s customers, on the other hand, are able to deliver to Singapore, South-east Asia and the wider Apac region via SingPost&rsquo s infrastructure. Simon Batt, CEO of Asendia, noted in an interview on Thursday that about 75 per cent of online shoppers in Singapore also buy from overseas brands, while 30 per cent of online buyers in Asia-Pacific are not fully satisfied with delivery services. &ldquo We see some demand from Singaporean shoppers and a little bit of dissatisfaction with how inbound logistics flows work. And so that seems to be a market challenge that we could contribute to,&rdquo he said. Batt mentioned that Asendia handled 140 million parcels globally in 2025, and Apac contributes about 25 per cent to total revenue, which stood at 1.1 billion euros (S$1.6 billion) last year. Describing the collaboration with SingPost as &ldquo a partnership of real complementarity&rdquo , Batt pointed out that his company has the overseas footprint while SingPost has the domestic capabilities and connectivity to the region. Mark Chong, CEO of SingPost, said the company is rebuilding its international corridor after Cainiao, the logistics arm of Chinese online marketplace operator Alibaba, moved away. &ldquo So partners like Asendia are very important for us.&rdquo Lionel Berthe, head of Asia-Pacific at Asendia, pointed out that his company also has a &ldquo very strong&rdquo presence in China, and it has been able to handle delivery from China to Singapore using SingPost services. Asendia has also tapped SingPost for deliveries from Australia via Singapore to Japan, as SingPost enjoys preferential rates with its Japanese counterpart. Working on solutions for upcoming EU customs duty Additionally, their tie-up will help customers navigate the upcoming European Union customs duty of three euros on all low-value imports from Jul 1. Prior to this, imports into the bloc with a value of up to 150 euros are exempted from customs duty. The tax, aimed at levelling the playing field for traditional retail, has already taken effect in some countries where national handling fees are being imposed. SingPost and Asendia are thus working to offer duty-paid solutions for EU-bound products. SingPost&rsquo s Chong said: &ldquo By extending our cross-border partnerships, we are providing businesses with the support to manage these complexities, ensuring that our customers can maintain access to these markets, minimising the risk of delivery friction or doorstep rejection.&rdquo Last year, when the US changed its import rules, SingPost tapped Asendia to roll out services to tackle the changes for US-bound shipments. The collaboration comes as Asendia leverages its Singapore hub&rsquo s connectivity to serve the region while the partnership is one of SingPost&rsquo s recent tie-ups as it sharpens its focus on postal service and e-commerce logistics after divesting its Australian logistics and freight forwarding businesses. Earlier in January, SingPost became the exclusive Singapore partner for US firm SkyNet Worldwide Express &ndash the world&rsquo s fifth-largest courier and express network. SingPost shares closed S$0.005 or 1.3 per cent lower at S$0.375 on Thursday, before the annoucement. |
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| 08-May-2026 10:04 |
ST Engineering
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ST Engg
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ST Engineering unit bags Middle East smart mobility projects worth over S$100 million The group&rsquo s urban solutions business has a &lsquo decade-long track record&rsquo in the region [SINGAPORE] The urban solutions business of ST Engineering : S63 -1.65% has secured two smart mobility projects in the Middle East valued at more than S$100 million in total. The group said on Thursday (May 7) that the ventures mark a &ldquo further expansion of its smart mobility footprint in the Middle East&rdquo . Under the first contract, ST Engineering Urban Solutions will &ldquo support the operations of Qatar&rsquo s national intelligent transport system (ITS), providing end-to-end maintenance&rdquo for the Road Management Centre of Qatar&rsquo s Public Works Authority or Ashghal. The scope of work includes &ldquo continuous system upkeep and technology upgrades to ensure reliable traffic management and safe tunnel operations across the country&rsquo s road network&rdquo , the group said. The three-year contract, under which ST Engineering Urban Solutions has been engaged as a &ldquo preferred partner&rdquo of EGIS QBC JV, commenced in the first quarter of 2026. EGIS QBC JV is a joint venture formed by Egis Operations, Qatar Building Company and Waagner Biro Bridge Qatar to deliver the roads operation and maintenance contracts awarded by Ashghal. Under the second contract, ST Engineering Urban Solutions will deploy its GoParkin smart car park system at the King Hussein Business Park (KHBP) in Jordan, with implementation &ldquo targeted to begin in the third quarter of 2026&rdquo . GoParkin &ldquo integrates automatic number-plate recognition, electric vehicle charging and multimodal payment capabilities on a single platform&rdquo , ST Engineering said. This, it added, will enable a &ldquo seamless user experience while improving operational efficiency for KHBP&rdquo . Gareth Tang, president of ST Engineering Urban Solutions, noted that amid a rapid evolution in Middle Eastern transport infrastructure, cities are &ldquo looking beyond standalone technologies towards integrated platforms that deliver measurable performance and long-term value&rdquo . ST Engineering said that its urban solutions business has a &ldquo decade-long track record in the Middle East&rdquo , with projects including the delivery of Dubai&rsquo s artificial intelligence-powered ITS, iTraffic, as well as the ongoing deployment of Abu Dhabi&rsquo s &ldquo first multimodal intelligent transportation central platform&rdquo . The group added that it has delivered over 60 ITS projects in more than 40 cities globally. Shares of ST Engineering fell 1.6 per cent or S$0.18 to close at S$10.74 on Thursday, before the news. |
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| 08-May-2026 10:03 |
OCBC Bank
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OCBC
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OCBC Q1 profit rises 5% to S$1.97 billion, beats estimates Non-interest income rose 23% to a record S$1.61 billion [SINGAPORE] OCBC&rsquo s net profit for the first quarter rose 5 per cent, driven by strong growth in wealth management, the lender said on Friday (May 8). Net profit for the three months ended Mar 31, 2026 stood at S$1.97 billion, versus S$1.88 billion a year earlier. This was above the S$1.88 billion consensus estimate in a Bloomberg survey of five analysts. Net interest income fell 5 per cent to S$2.2 billion, amid a lower interest rate environment, as net interest margin narrowed by 28 basis points to 1.76 per cent, from 2.04 per cent previously. Non-interest income rose 23 per cent to a record S$1.61 billion, as wealth management fees increased by 34 per cent to S$422 million, with contributions across all wealth product channels on increased customer activities. The non-performing loan ratio was unchanged at 0.9 per cent. Total allowances rose 2 per cent to S$216 million, largely due to higher allowances for non-impaired assets. Tan Teck Long, group chief executive officer of OCBC, said: &ldquo We achieved a new high for non-interest income, led by our wealth business, which helped us offset lower net interest income amid a low-interest rate environment.&rdquo OCBC rounded off the first-quarter earnings season for Singapore&rsquo s three local banks, following DBS on Apr 30 and UOB on May 7. Earlier this week, on May 4, OCBC announced that its subsidiary, Bank OCBC NISP Tbk, will acquire the assets and liabilities of HSBC&rsquo s retail and wealth management operations in Indonesia. Shares of OCBC : O39 -0.55% closed 0.6 per cent, or S$0.12, lower at S$21.88 on Thursday, ahead of the results release. |
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| 08-May-2026 10:01 |
Raffles Edu
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A Few Good Men
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Raffles Education Delivers Resilient Business Performance with Strengthened Balance Sheet in 9M2026
&bull Highlighting the resiliency of its private education business model in ASEAN built over 36 years, the Group&rsquo s revenue remained relatively stable with core earnings of S$22.71 million in 9M2026, despite the disposal of Raffles Hefei (which owns Wanbo Science and Technology Vocational College) that was completed in the 1st Half of FY2026 and the impact of a stronger Singapore dollar.
&bull Net cash generated from operating activities improved to S$16.25 million during 9M2026, supported by advance course fee collections. &bull Liquidity position improved with increased cash and bank balances of S$46.18 million as at 31 March 2026 (as compared to S$16.86 million as at 30 June 2025), alongside deleveraging and strategic asset monetisation initiatives. &bull Total Group borrowings reduced substantially to S$84.99 million as at 31 March 2026, compared to S$206.78 million as at 31 March 2025, of which S$40.99 million was attributable to its Hong Kong Stock Exchange-listed subsidiary, Oriental University City Holdings (H.K.) Ltd and net value of S$35.19 million convertible bonds (gross value $38.83m), of which net value of S$31.75 million (gross value $35.03m) is held by the Company&rsquo s Chairman and CEO, Mr Chew Hua Seng. &bull The Company&rsquo s standalone bank borrowings have been reduced to zero. &bull Finance costs decreased to S$10.67 million in 9M2026, reflecting lower borrowings and reduced interest rates as part of the Group&rsquo s ongoing deleveraging efforts and strategic asset monetisation initiatives. &bull Net assets increased to S$713.17 million that are mainly anchored by substantial freehold property assets with net asset value per ordinary share of 35.13 SG cents as at 31 March 2026. &bull Underpinning its resilient private education business model in ASEAN, Raffles Education benefits from a highly scalable platform with low incremental capital expenditure as a substantial portion of its land and buildings, classified as property, plant and equipment and developed for its core education operations, are fully paid up and unencumbered. &bull The Group is focusing on the expansion of its premium K&ndash 12 education segment across ASEAN, including plans to establish a new K&ndash 12 campus in Jakarta, Indonesia, in the second half of 2026. &bull Alongside a significant reduction in borrowings, the Group aims to further strengthen its financial performance through disciplined cost management across its operations, driving margin expansion and supporting the delivery of long-term sustainable value as a premier education group in Asia. Commenting on the results for 9M2026 and business outlook, Chairman and CEO of RafflesEducation, Mr. Chew Hua Seng （ 周 华 盛 ） said, &ldquo For 36 years, we have built up
Raffles Education&rsquo s business model into a resilient and scalable private education platform in Asia, supported by a strong underlying asset base.
This foundation enables us to expand efficiently with low incremental capital expenditure while continuing to grow our core education offerings with high academic standards
across key markets in ASEAN.
Combined with our deleveraging efforts over the past few years, including strategic asset monetisation initiatives undertaken during the period, the Group is advancing toward a
net cash position, with greater flexibility to pursue strategic growth opportunities with our premium K&ndash 12 curriculum in Southeast Asia.
By balancing financial discipline, operational efficiency and strategic expansion, we remain committed to creating long-term value for our stakeholders and further reinforcing our leadership in Asia&rsquo s education sector.&rdquo
See link: https://links.sgx.com/FileOpen/RafflesEdu_PR_3Q2026_7May2026.ashx?App=Announcement& FileID=887987 |
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| 07-May-2026 13:23 |
Keppel
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Keppel Corp
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Are Keppel&rsquo s dividends truly unsustainable &ndash or just misunderstood? The company&rsquo s shares have rallied over the past year, generating a total shareholder return of 58.5% in 2025 [SINGAPORE] The recent clash between Keppel : BN4 -0.09% and activist research firm Corporate Monitor highlights a vital question for investors: Are the dividends from the restructured Keppel truly sustainable? The activist report pulled no punches. It argued that Keppel&rsquo s payouts are a mirage, funded by selling off assets rather than by generating operating cash flow. Pointing to a gap between reported profits and operating cash flow, Corporate Monitor painted a picture of a heavy balance sheet masking underlying weakness. At Keppel&rsquo s recent annual general meeting, these hard questions &ndash fielded by proxies for Corporate Monitor &ndash also dominated the floor. To judge the fairness of this critique, we must look at the blueprint of Keppel&rsquo s Vision 2030. The activist argument judges Keppel by the metrics of a traditional industrial conglomerate. If a legacy builder relies on asset sales to fund its dividends, warning bells should rightly ring. But Keppel has changed its identity. It has transitioned into a global asset manager and operator. In this new space, asset monetisation is the core operating engine. Through sponsor stakes in and co-investments with its own private funds or affiliated real estate investment trusts, Keppel develops real assets, stabilises them, and then sells them. &ldquo As an asset manager and operator, Keppel&rsquo s cash-generation sources include both operating and investing activities,&rdquo a company spokesperson said in response to queries from The Business Times. &ldquo It is incomplete to look at Keppel&rsquo s cash flow just from the perspective of &lsquo cash flow from operations&rsquo .&rdquo Besides recurring distributions supported by the underlying operating cash flows, the assets owned by its private funds typically see valuation uplift over the development cycle. Value realised on divestment and proceeds distributed back to Keppel contribute to its investment cash inflows. &ldquo Despite investments and capex of S$5.4 billion from 2021 to 2025, the company generated free cash inflows cumulatively over the same period of approximately S$1.7 billion,&rdquo the spokesperson said. The way Keppel sees it, to look only at cash flow from operations is hence &ldquo inadequate and misleading&rdquo . Similar pivot, different paths We can see the mechanics of this strategy clearly by looking at another local giant that successfully made a similar pivot: CapitaLand : 9CI +0.38%. Both companies made a big change to become global asset managers. CapitaLand paved the way in 2021 when it listed its investment arm. It uses its balance sheet to start real estate projects and then sells them to its private funds or trusts to earn fees. Keppel is building the same engine, but it focuses on energy, green tech and digital assets. The main difference is in how they deal with their older, heavy assets. CapitaLand made a clean split. It took its heavy development business private and listed only the asset management side. Keppel took a different path it kept its older assets on its books. Keppel created a set-up where its new business drives regular income, while it slowly sells off the older, non-core assets. This makes Keppel&rsquo s balance sheet look heavier, as if it carries more debt than CapitaLand&rsquo s right now. This relatively heavier debt is the main reason for the complaints from Corporate Monitor. Critics rightly point out that the group still carries a heavy legacy burden. Keppel has S$13.5 billion tied up in non-core assets. The overall ratio of group net debt to earnings before interest, taxes, depreciation and amortisation remains high. However, Keppel&rsquo s leadership has clarified that the debt profile of New Keppel is far healthier. The heavier debt load sits squarely with the legacy assets, which the company is actively working to clear by 2030. The company&rsquo s dividend policy directly reflects this dual approach. To provide clarity to the market, management has drawn a clear line between its core operations and its legacy portfolio. The ordinary dividend is funded by the performance of &ldquo New Keppel&rdquo , which is underpinned by recurring income. In 2025, a robust 86 per cent of New Keppel&rsquo s net profit was recurring. This gives the ordinary payout a strong, reliable foundation, much like the fee-based income that anchors CapitaLand Investment. For FY2025, Keppel proposed an ordinary dividend of S$0.34 per share, comprising a final dividend of S$0.19 per share and an interim dividend of S$0.15 per share. The special dividend is handled differently. Keppel has a set policy to pay out 10 to 15 per cent of the gross value of asset monetisation transactions completed in the financial year. For 2025, the company announced approximately S$2.9 billion in divestments and completed S$1.6 billion in transactions to unlock capital, reduce debt and fund growth. This drove a proposed special dividend of roughly S$0.13 per share. This explicit link between asset sales and special payouts removes the guesswork for investors. It provides a transparent framework for the duration of the monetisation programme. In the year to date, Keppel has announced S$385 million in asset monetisation, with a target to monetise S$2 billion to S$3 billion of non-core assets in 2026. Transformation in progress Understandably, transforming a massive legacy balance sheet takes time. But the first quarter of 2026 provided encouraging signs that the transition is gaining traction. Keppel reported that it had returned to a free cash inflow position &ndash recording cash inflows from both operating and investing activities, compared to outflows in the corresponding quarter the year before. Asset management fees rose 13 per cent year on year to S$108 million in Q1 2026, even as overall net profit was lower on fair value losses and lower monetisation gains from the non-core portfolio. The company is closing in on its target of S$100 billion in funds under management ahead of its 2026 deadline. Looking further ahead, the group aims to double that figure to S$200 billion by the end of the decade. The market has largely validated this strategic pivot. Keppel&rsquo s shares have rallied strongly over the past year. Investors were rewarded with a total shareholder return &ndash with dividends reinvested &ndash of 58.5 per cent in 2025. Sell-side analysts remain overwhelmingly positive on the stock. They view the regular asset sales as clear catalysts for unlocking value. Asset recycling inherently produces lumpy cash flows. There will be quarters where divestment gains skew the numbers. There will be periods of heavy capital expenditure as new seed assets are developed. The upcoming Keppel Sakra Cogen Plant, for instance, requires significant upfront investment. But it will eventually provide contracted, recurring revenue before potentially being offered to investors. The activist critique performs a useful function. It demands accountability and rigorous accounting. The questions regarding the carrying value of legacy assets and the pace of the wind-down are entirely valid. Management will need to maintain strict discipline to ensure that the non-core portfolio is monetised at fair valuations. But to conclude that Keppel&rsquo s dividends are unsustainable is to ignore the stated mechanics of its business model. The company has laid out a clear road map. The recurring income from its asset management and operating platforms secures the base dividend, while the managed unwinding of its legacy assets funds the special payouts. This is a multi-year transformation taking place in full view of the market. The transition from heavy industry to asset management is inherently messy in its middle phases. But the underlying financial engine is working as designed. For investors willing to accept the asset-light premise proven by peers, Keppel&rsquo s current payout structure offers a credible bridge to the future. |
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| 07-May-2026 12:14 |
Venture
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2022 Venture Corporation - A Year Of Recovery
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Analysts upbeat on Venture Corporation after 1QFY2026 results, shares surge more than 11% After reporting a stronger set of results on a y-o-y basis for the 1QFY2026 ended March 31, analysts have strengthened their outlook on Mainboard-listed Venture Corporation. In a bourse filing after trading hours on May 5, the advanced technology solutions provider reported y-o-y growth in earnings of 0.7% to $56.3 million on the back of a 1.9% y-o-y rise in revenue to $628.5 million. Earnings per share was 19.5 cents with net margin at 9%. Venture Corp shares, following the news, surged by as much as 11.17% to $18.32 ahead of the lunch break on May 6. Before the result announcement, William Tng of CGS International had raised his target price for the company to $21.78 from $17.04 while maintaining a &ldquo buy&rdquo call in his report dated April 30. Forecasting earnings per share to grow by an average of 8% from FY2026 to FY2028, his target price values Venture at 23 times of FY2027 forecasted P/E. The results beat his expectations slightly and he reinforced his call at an unchanged target price with a follow-up report on May 5. Meanwhile, DBS analyst Lee Keng Ling has upgraded Venture Corporate to a &ldquo buy&rdquo at a higher target price of $21.80 from the previous $17.90. This valuation is based on an higher forecasted 2027 P/E of 24 times, up from the previous 21 times To her, the result was &ldquo broadly&rdquo in line with expectations and signals early signs of recovery, with momentum expected to pick up through the year. She notes that Portfolio B, which include the test and measurement, semiconductor and data centre domains, grew revenue by 11.2% y-o-y to $417 million and remain the company&rsquo s principal expansion pillars. For Portfolio A &mdash comprising life science, medtech and lifestyle consumer &mdash which declined in revenue 12.4% to $212 million, she suggests that a recovery in the consumer lifestyle segment could emerge in 2HFY2026, supported by new product introductions aimed at improving user experience and rebuilding volume momentum. She believes the quarter marks an &ldquo important turnaround&rdquo as it delivered the company&rsquo s first y-o-y quarterly earnings and revenue growth after three years of decline. &ldquo Venture remains an attractive value play, underpinned by a strong balance sheet with over $1 billion in net cash and zero debt,&rdquo she states, adding that this cash holding and dividend yield of 4.9% makes the counter &ldquo compelling&rdquo . UOB Kay Hian&rsquo s John Cheong and Heidi Mo have similarly raised their target price to $20.65 from $18.64, with their &ldquo buy&rdquo rating maintained. This valuation is pegged to 23.7 times forward FY2027 P/E or 2.5 standard deviations above the long-term historical mean. In their May 6 report, Cheong and Mo note that results were in line, with revenue growing by 8% on a constant currency basis suggesting strong momentum. Both seemed satisfied with the net margin of 9% which indicated focus on high value-add solutions and cost discipline. Venture&rsquo s cash holding of more than $1 billion provides downside protection and capacity for strategic investments, they point out. On the operational front, they see upcoming growth in Venture&rsquo s various business segments including data centre and life science. They believe Venture&rsquo s R& D programme positions the business to seize opportunities beyond product/system design and development. Cheong and Mo raise their target price to reflect &ldquo stronger conviction&rdquo in the firm&rsquo s earnings visibility, balance sheet and upcoming growth drivers. |
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| 07-May-2026 12:13 |
F & N
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F&N
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F& N&rsquo s 1HFY2026 declines by 2.9% to $81.6 mil declares dividend of 1.5 cents Fraser and Neave (F& N) has reported earnings of $81.6 million for the 1HFY2026 ended March 31, 2.9% lower y-o-y. Earnings per share (EPS) before exceptional items dipped to 5.6 cents on a fully diluted basis, compared to 5.8 cents in the 1HFY2025. Revenue fell by 6.4% y-o-y to $1.14 billion as beverages and dairies revenue fell. Beverages revenue was down by 12.2% y-o-y to $376.9 million mainly from an adverse currency impact of $65.8 million for the group&rsquo s beer operations in Myanmar after the adoption of the Singapore Financial Reporting Standards (International) or SFRS(I) 1-21. Excluding the foreign exchange (forex) impact, beverages revenue would have increased by 3.1% driven by price increases for beer and better volumes for soft drinks sales. The performance for soft drinks was thanks to strong festive demand for 100Plus, the introduction of new products and higher water volumes from Ice Mountain. Dairies revenue fell by 4% y-o-y to $617.8 million mainly due to lower export sales from Thailand to Cambodia on the back of anti-Thai sentiment. The decline was also attributable to lower domestic sales in Thailand due to weaker consumer sentiment. The decline was partly mitigated by increased sales in Malaysia in Singapore supported by higher domestic sales from distribution expansion and stronger contributions from the school milk programme in Malaysia. Printing and publishing (P& P) revenue rose by 2.3% y-o-y to $98.1 million driven mainly by stronger performance in the Education segment. The segment saw higher annual orders due to improved adoption rates and increased export sales in Singapore. Printing revenue also rose y-o-y thanks to higher sales from packaging print growth was mainly driven by &ldquo robust demand&rdquo for Kraft paper bags in the US. Distribution sales also improved y-o-y underpinned by a healthy sales channel performance and enhanced trading efficiency. Gross profit inched up by 0.5% y-o-y to $378.6 million while overall profit before interest and taxation (PBIT) was up by 5.8% y-o-y to $174.8 million. PBIT for the beverages segment rose due to higher margins from the beer segment, offseting cost pressures and forex. Dairies PBIT fell largely from lower contributions from Malaysia and Thailand. Earnings from Malaysia were affected by a less favourable sales mix from lower export contributions due to unfavourable forex movements, country mix and higher supply chain costs. The performance in Thailand was due to lower sales and unfavourable forex. The decline in Malaysia and Thailand was partly offset by a 42% increase in contributions from F& N&rsquo s associate, Vietnam Dairy Products Joint Stock Company, with share of profit increasing to $51.2 million from $36 million the year before. The increase is due to better performance from Vinamik and the increase in F& N&rsquo s stake to 24.99% from 20.39% in December 2025. P& P saw narrower losses mainly due to higher sales and a leaner cost structure in print, which was supported by improved profitability from the group&rsquo s growing sustainable packaging business. For the period, F& N has declared an interim dividend of 1.5 cents per share, unchanged y-o-y. The dividend will be paid on June 5. As at March 31, cash and cash equivalents stood at $334.7 million. F& N&rsquo s CEO Rahul Colaco says the group&rsquo s underlying business remains &ldquo sound&rdquo with despite the &ldquo progressively more challenging&rdquo market conditions in the first half of 1HFY2026. There is &ldquo continued momentum in key growth areas, including our P& P segment where we are seeing encouraging traction in Education and sustainable packaging,&rdquo he adds. &ldquo During the period, we advanced our innovation agenda across the region, introducing new products to expand consumption occasions and respond to evolving consumer preferences. We have also taken a measured step to expand our presence into the wellness space through our proposed investment in Comvita Limited, which provides a platform to participate in the growth of premium natural health products,&rdquo he continues. &ldquo These initiatives support our continued focus on developing health and wellness offerings across our core brands.&rdquo |
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| 07-May-2026 12:12 |
Great Eastern
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Great Eastern Holdings Limited
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Great Eastern Q1 profit remains steady at S$346.3 million despite challenging investment environment Performance is also underpinned by improved insurance profits [SINGAPORE] Great Eastern : G07 +1.28% posted a 0.2 per cent increase in net profit to S$346.3 million for its first quarter ended Mar 31, 2026, from S$345.5 million in the previous corresponding period. The group reported in a bourse filing on Wednesday (May 6) that its net profit remained steady year on year despite a less favourable investment environment. Performance was underpinned by improved insurance profits of S$329 million, up 33 per cent from S$246.8 million a year earlier. This was supported by a release in reserves reflecting positive experience and strong underlying fundamentals, said the insurance arm of OCBC : O39 +0.69%. This was partly offset by weaker investment performance in the shareholders&rsquo fund, where profit declined 82 per cent to S$17.3 million due to equity and fixed income mark-to-market losses. Total weighted new sales (TWNS) for the quarter rose 16 per cent to S$401.9 million from S$345.1 million a year earlier. This was driven by sustained momentum in Singapore, where TWNS grew 24 per cent to S$266.8 million on improved productivity from both agency and bancassurance channels. TWNS from Malaysia was broadly flat at S$126.8 million as demand for insurance products remained subdued amid &ldquo challenging market sentiment&rdquo . New business embedded value, a measure of long-term profitability of new sales, recorded a growth of 31 per cent to S$195.4 million. Greg Hingston, group CEO of Great Eastern, said that the group&rsquo s fundamentals &ldquo positions us well to navigate ongoing market uncertainty, while maintaining the flexibility to continue investing in our strategic priorities and deliver sustainable growth as we move through the rest of the year&rdquo . |
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| 07-May-2026 12:10 |
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Manulife US REIT says it will resume distributions at &lsquo sustainable payout ratio&rsquo after MRA exit After nearly three years since Manulife US REIT (MUST) announced it was halting distributions, unitholders are finally seeing some semblance of hope. On May 6, the REIT announced, in its operational updates for the 1QFY2026 ended March 31, that one of its key priorities in 2026 to 2027 is to resume distributions but at a &ldquo sustainable payout ratio&rdquo after exiting its master restructuring agreement (MRA). The exit will be subject to negotiations with MUST&rsquo s lender, although the REIT also aims to exit the MRA within 2026 to 2027. The group adds that it seeks to reinstate its initial loan facility agreements by December 2026, again, subject to negotiations with the lender, and amend its bank interest coverage ratio (ICR) in the initial loan facility agreements to align with the Monetary Authority of Singapore&rsquo s (MAS) threshold of 1.5 times. When asked, CFO Mushtaque Ali explained that the REIT&rsquo s previous payouts were &ldquo close to almost every single dollar&rdquo made on the distributable income, or at least 90% of it. &ldquo That level of distributions will not remain sustainable given where we are in the cycle of our leasing and where our assets are,&rdquo he says. &ldquo At this point, we still have predominantly office assets, which require a lot of capex (capital expenditure) to release and sustain [their] current occupancy levels,&rdquo he adds. Given this, the distributions will resume &ldquo from the low end&rdquo and gradually progress as the REIT improves its leasing and cash flows. &ldquo The strategy will benefit as we dispose of assets and replace [them] with other asset classes that require less capex,&rdquo he continues. MUST first announced that it was pausing its distributions for the 1HFY2023 in August 2023 after it breached its financial covenants. The REIT then announced, in February 2024, at its FY2023 results, that it will be halting distributions till Dec 31, 2025 unless it achieves its early reinstatement conditions earlier. These conditions refer to MUST having consolidated total liabilities to consolidated deposited properties of no more than 45% or having a ratio of between 45% to 50% but with an ICR of over 2.5 times with no potential events of default continuing for at least one financial quarter. The latest update comes after MUST met its divestment targets under the MRA. On March 30, MUST announced that it will be divesting Figueroa to the City of Los Angeles&rsquo Department of Water and Power for US$92.5 million ($119.2 million), which more than covers its divestment target of US$55.6 million. On May 6, MUST said the buyer obtained the &ldquo necessary approvals&rdquo and signed the purchase and sale agreement in relation to the sale of the building. The REIT added that the divestment is expected to be completed by 2Q2026. Before the announcement, CEO and CIO John Casasante told the media and analysts that the divestment is &ldquo on track&rdquo and &ldquo moving along&rdquo according to the REIT&rsquo s expectations. While he cautioned that &ldquo anything can happen until a deal&rsquo s closed&rdquo in the US, the REIT had a &ldquo high level of confidence&rdquo with how the transaction was progressing. It was also &ldquo on track&rdquo for a June close. On the US market, Casasante said the sector was a &ldquo mixed bag&rdquo but was &ldquo promising&rdquo on the whole. He added that properties that have triple net leases &mdash where the tenant pays for all expenses &mdash are currently the &ldquo most attractive&rdquo and can be found in industrial, retail, multi-family or living sectors, properties that are of interest to the REIT currently. Yet, when it comes to deals, he was careful to note that the REIT is not making deals that &ldquo don&rsquo t make sense&rdquo although it will chase every deal that comes. &ldquo You don&rsquo t know the form of the deals they&rsquo re going to take if you don&rsquo t chase it.&rdquo As at March 31, MUST has US$35.6 million loans remaining in 2026, which are expected to be fully repaid with divestment proceeds. The REIT also aims to repay US$37 million of its debt maturing in 2027 from the proceeds from the sale of Figueroa. The remaining 2027 debt will be managed through divestments, refinancing, equity raising and, or an extension of its debt maturity. Other plans include acquiring up to US$600 million worth of properties funded by divestments, equity and, or debt. At its extraordinary general meeting (AGM) in December 2025, MUST received unitholders&rsquo approval to expand its acquisition mandate to include properties in the industrial and living sector, as well as retail assets in the US and Canada. The acquisitions will not exceed US$600 million. Upon the completion of the Figueroa divestment, the REIT will own six properties in the US &ndash namely Michelson in Irvine, California Exchange in Jersey City, New Jersey Penn in Washington D.C. Phipps in Atlanta, Georgia Centerpointe in Fairfax, Virginia and Diablo at Tempe, Arizona &ndash with a total net lettable area (NLA) of around 2.8 million sq ft. |
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