Key Indices
Top Stories
Company Results | Hong Leong Asia (HLA SP/BUY/S$3.18/Target: S$4.70)
- HLA's 1H26 revenue of S$3,129m and PATMI of S$92m beat our forecasts at 52% and 65% respectively, driven by double-digit growth across both business segments. HLA declared an interim dividend of S$0.03/share, backed by a strong net cash position despite an enlarged share base. Maintain BUY with a lower target price of S$4.70 due to its enlarged share base.
Company Results | Singapore Technologies Engineering (STE SP/BUY/S$10.36/Target: S$11.75)
- STE’s 1H26 net profit of S$512m (+27.1% yoy) was in line with our expectation, at 48.6% of our full-year forecast. Orderbook hit a new record-high level of S$35.7b by end-1H26, providing medium-term growth visibility. The slower 2Q26 order win was only a timing issue, as demand remained strong. STE guides for 2026 total contract wins to be at least comparable to 2025 levels, implying strong order wins of S$11b or more in 2H26. Maintain BUY; target price: S$11.75.
Company Results | Singapore Telecommunications (ST SP/BUY/S$4.27/Target: S$5.50)
- Singtel delivered a strong 1QFY27 underlying net profit of S$831m (+21 yoy). Key drivers include robust Airtel and AIS contributions while opco EBIT rose 10% yoy thanks to positive performance from Optus, NCS and Digital Infraco. We expect Optus’s ARPU uplift to positively flow through in 2QFY27. Results deemed in line with expectations. Maintain BUY with an SOTP-based target price of S$5.50.
Company Results | UltraGreen.ai (UGAI SP/BUY/US$1.32/Target: US$1.95)
- 1H26 earnings of US$39m (+53% yoy) are in line with expectations, with volume growing across all geographies. Verdye approvals have increased from 35 to 43 countries since end-25. UltraGreen has renewed its revenue guidance in anticipation of 2H26 revenue improving hoh. UltraGreen is trading at an attractive PE of 16x 2027F vs peers of 27x. Maintain BUY with a target price of US$1.95.
Market Spotlight
- US stocks were higher on Thursday, with all indices rising as the communication services, real estate and information technology sectors rose. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI fell 0.70 points to 5,720.05, supported by weakness in Singtel and Seatrium, with mid-cap indices falling while small-cap indices rising with a broad market decline on a S$2.88b turnover.
What’s Inside
Company Results | AEM Holdings (AEM SP/BUY/S$10.98/Target: S$12.99)
- AEM’s 1H26 earnings of S$31m (+876% yoy) is in line with our estimate, at 48% of our full-year estimate. Revenue grew 30% yoy, led by the ramp-up of fabless AI/HPC customer. 2026 revenue guidance is raised by 14% and EPS guidance was revealed. AEM remains confident in its growth trajectory. Maintain BUY and target price of S$12.99.
Company Results | Genting Singapore (GENS SP/HOLD/S$0.625/Target: S$0.700)
- GENS’ improving 1Q26 results mainly reflect higher mass gaming volume and full opening of The Laurus Hotel. Despite a slower start in 1H26, we see modest earnings improvement through 2H26, lifted by better visitations on a strong pipeline of mega entertainment events and earlier launching of non-gaming attractions. Nevertheless, elevated operating costs will likely continue to pressure profitability margin. We maintain HOLD but lower our target price to S$0.70, as we reduced our valuation yardstick to factor-in investors’ sentiment de-rating.
Technical Analysis
Parkway Life Real Estate Investment Trust (PREIT SP)
- Trading Buy Range: S$4.11-4.12
Hong Fok Corp (HFC SP)
- Trading Buy Range: S$0.895-0.900
Top Stories
Company Results | Hong Leong Asia (HLA SP/BUY/S$3.18/Target: S$4.70)
- HLA's 1H26 revenue of S$3,129m and PATMI of S$92m beat our forecasts at 52% and 65% respectively, driven by double-digit growth across both business segments. HLA declared an interim dividend of S$0.03/share, backed by a strong net cash position despite an enlarged share base. Maintain BUY with a lower target price of S$4.70 due to its enlarged share base.
Company Results | Singapore Technologies Engineering (STE SP/BUY/S$10.36/Target: S$11.75)
- STE’s 1H26 net profit of S$512m (+27.1% yoy) was in line with our expectation, at 48.6% of our full-year forecast. Orderbook hit a new record-high level of S$35.7b by end-1H26, providing medium-term growth visibility. The slower 2Q26 order win was only a timing issue, as demand remained strong. STE guides for 2026 total contract wins to be at least comparable to 2025 levels, implying strong order wins of S$11b or more in 2H26. Maintain BUY; target price: S$11.75.
Company Results | Singapore Telecommunications (ST SP/BUY/S$4.27/Target: S$5.50)
- Singtel delivered a strong 1QFY27 underlying net profit of S$831m (+21 yoy). Key drivers include robust Airtel and AIS contributions while opco EBIT rose 10% yoy thanks to positive performance from Optus, NCS and Digital Infraco. We expect Optus’s ARPU uplift to positively flow through in 2QFY27. Results deemed in line with expectations. Maintain BUY with an SOTP-based target price of S$5.50.
Company Results | UltraGreen.ai (UGAI SP/BUY/US$1.32/Target: US$1.95)
- 1H26 earnings of US$39m (+53% yoy) are in line with expectations, with volume growing across all geographies. Verdye approvals have increased from 35 to 43 countries since end-25. UltraGreen has renewed its revenue guidance in anticipation of 2H26 revenue improving hoh. UltraGreen is trading at an attractive PE of 16x 2027F vs peers of 27x. Maintain BUY with a target price of US$1.95.
Market Spotlight
- US stocks were higher on Thursday, with all indices rising as the communication services, real estate and information technology sectors rose. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI fell 0.70 points to 5,720.05, supported by weakness in Singtel and Seatrium, with mid-cap indices falling while small-cap indices rising with a broad market decline on a S$2.88b turnover.
What’s Inside
Company Results | AEM Holdings (AEM SP/BUY/S$10.98/Target: S$12.99)
- AEM’s 1H26 earnings of S$31m (+876% yoy) is in line with our estimate, at 48% of our full-year estimate. Revenue grew 30% yoy, led by the ramp-up of fabless AI/HPC customer. 2026 revenue guidance is raised by 14% and EPS guidance was revealed. AEM remains confident in its growth trajectory. Maintain BUY and target price of S$12.99.
Company Results | Genting Singapore (GENS SP/HOLD/S$0.625/Target: S$0.700)
- GENS’ improving 1Q26 results mainly reflect higher mass gaming volume and full opening of The Laurus Hotel. Despite a slower start in 1H26, we see modest earnings improvement through 2H26, lifted by better visitations on a strong pipeline of mega entertainment events and earlier launching of non-gaming attractions. Nevertheless, elevated operating costs will likely continue to pressure profitability margin. We maintain HOLD but lower our target price to S$0.70, as we reduced our valuation yardstick to factor-in investors’ sentiment de-rating.
Technical Analysis
Parkway Life Real Estate Investment Trust (PREIT SP)
- Trading Buy Range: S$4.11-4.12
Hong Fok Corp (HFC SP)
- Trading Buy Range: S$0.895-0.900
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
