Stocks to Watch
AEM Holdings – TP (+), Earnings (+)
Placing more chips on our non-consensus BUY
- FY25 net profit came in at SGD17.1mn (+48% y/y) on revenue of SGD399.3mn (+5% y/y), above expectations, with dividend payments resumed
- FY26 revenue guidance of SGD460–510mn (+21% y/y at the midpoint) is anchored by the continued ramp of its key AI/HPC customer
- Well positioned to benefit from multi year AI demand with legal uncertainty likely to take a backseat
- Maintain BUY with higher TP SGD3.30 (vs SGD2.10 previously)
Yangzijiang – TP (+), Earnings (+)
Earnings full sail, dividends won't fail
- Confident USD4.5bn FY26 orders from containerships despite 5-10% price softening
- Current high GPM could sustain into 2027 and normalises over the medium term, backed by order backlog providing visibility through 2029
- Lifting FY26-27 earnings by ~4% on higher revenue; Revenue growth driven by new capacity at Hongyuan yard (+20%)
- Maintain BUY; TP lifted to SGD4.55; attractive dividend yields 5-6%
Hong Leong Asia – TP (+), Earnings (+)
Earnings beat propelled by Powertrain Solutions unit
- Adjusted EPS beat expectations, rising 28.5% y/y on strong Powertrain profitability and operating leverage
- Revenue increased 22.0% y/y to SGD 5.18bn, driven by 29.4% growth in Powertrain volumes while Building Materials delivered steady profit growth on pricing gains and lower energy costs
- FY26 outlook remains constructive on export engines and data centre applications, as well as the increase in untilisation rates for Building Materials facilities
- Reiterate BUY with a higher TP of SGD3.90
Nanofilm – TP (-), Earnings (-)
Outlook positive but execution remains key
- FY25 earnings above expectations, supported by strengthening operating leverage, with growth led by AMBU expansion and sharp IEBU recovery
- Margins rebounded in 2H, signal improved utilisation and a more normalised cost structure
- Outlook remains positive, but execution will be key to sustaining momentum
- Maintain HOLD with slightly lower TP of SGD0.68; adjust FY26F/27F earnings by -4%/+17%
UOL
Cheerworthy FY25 results with special dividend surprise
- Convincing beat with FY25 operating PATMI of SGD469mn (+49% y/y) and special dividend of 7Scts/share on top of final dividend of 18Scts/share
- Share price expected to react positively following steep 6% correction today, which was likely to be some near-term profit taking in our view
- While 0.6x P/RNAV presents a more compelling entry point now, further meaningful re-rating hinges on execution of value unlocking initiatives
- Maintain BUY and TP of SGD13.00
City Develoments
- FY25 PATMI grew >2x y/y to SGD 630mn, c.22% above our estimates, driven by Singapore development recognition and sizeable divestment gains
- Final dividend of 25 Scts brings full-year dividend to 28 Scts/share (FY24: 10 Scts); new dividend policy of minimally 35% of reported PATMI a positive surprise and balanced approach, in our view
- Share price expected to react positively following 6% correction yesterday, which could be some near-term profit taking
- Maintain BUY and TP of SGD 11.80
ST Engineering
Aerospace and defence beat; backlog and cross-sector tailwinds support positive outlook
- FY25 core net profit of SGD 851mn beat consensus by 4%, driven by better-than-expected CA margins and solid DPS topline growth, with group core margins up 60bps y/y
- Order backlog rose to SGD 33.2bn vs SGD28.5bn in 4Q24, with international defence wins more than doubling y/y; full-year dividend per share of 23Scts largely in-line
- 2026 outlook remains constructive on MRO tailwinds from lingering supply chain constraints, with no impact from GTF engine shortages given STE’s focus on LEAP platforms, alongside sustained defence momentum
- We currently have a BUY call and TP of SGD10.20; recommendation and TP are under review
UltraGreen.ai
Structural growth story unchanged
- Volume and ASP growth continued to drive core earnings to USD63.8mn (+14% y/y) on revenue of USD142.4mn (+24% y/y), broadly in line with expectations
- FY26 revenue is guided at USD170-190mn (+26% y/y at the midpoint; in line with our forecast of USD178mn) reflecting continued underlying growth momentum
- Structural growth story remains unchanged though investment in growth initiatives may temper margins
- We currently have a BUY call with TP USD2.05, more updates to come after the briefing
China Aviation Oil
FY25 results trounces expectations as jet fuel trading margin surges to multi-year high
- FY25 net profit of USD110.6mn came in 14% above the USD97mn consensus, with 2H25 net profit of USD60.6mn surging 69% y/y
- The beat was margin-driven, with middle distillates gross profit per tonne surging to USD4.7/mt in 2H25 from USD2.6/mt in 2H24, as regional arbitrage conditions widened and SAF contributed incrementally to the mix
- Dividend disappoints at a flat 22% payout ratio, though net cash has ballooned to USD683mn, leaving the ex-cash P/E broadly in line with pre-pandemic trading ranges despite the sharp share price rally since our re-initiation
- We currently have a BUY call and TP of SGD1.75; recommendation and TP are under review
Frasers Property (FPL)
Gaining control of the Centrepoint
- Awarded the collective sales tender for leasehold portion of the Centrepoint for SGD 391.9mn
- Consolidating its ownership in the property; potential value-unlocking of the property and 51 cuppage through the SDI scheme
- Quietly making moves to consolidate its position within the group; potential trove of value to be crystalised in the coming quarters
- BUY call, TP SGD 1.50 maintained
Venture – TP (+)
FY25 earnings met expectations as margins held firm
- FY25 earnings met expectations amid softer volumes but resilient profitability
- Revenue declined 7.4% y/y as Lifestyle Consumer weakened; mix shift to higher value-add solutions supported margins
- Outlook signals gradual earnings recovery from hyperscale data-centre exposure, balanced by macro and demand-visibility risks
- Maintain HOLD with a higher TP of SGD17.90; earnings forecasts remain unchanged
Wilmar
Core net profit beat our forecast, in line with consensus
- FY25 core net profit came in at USD1,278m (+10% y/y), beating our forecast but in line with consensus
- A USD1,140m gain from the AWL Agri business value remeasurement, due to a change in interest, offset USD780m losses from the Indonesia cooking case and USD254m losses related to legal cases in China and Pakistan
- Final dividend proposed at 10 Scts /share (flat y/y), bringing FY25 total dividend to SGD0.14/share (-13% y/y)
- We are reviewing our TP and rating, but we believe the share price rally in 2026 has already priced in the strong earnings outlook for 2026
Aztech Global
FY25 revenue and core earnings inline
- FY25 revenue declined 30.4% y/y to SGD432.5mn, reflecting increased competition and softer demand across key end markets
- Net earnings fell 43% y/y to SGD40.2mn, with net margin compressing to 9.3% versus 11.3% in FY24
- Operational footprint optimisation aims to improve utilisation efficiency, while new project wins support gradually improving order visibility
- Maintain HOLD with SGD0.67 TP; modest earnings uplift on margin improvements
PropNex
- FY25 net profit rose +72% y/y to record SGD70.4mn, on the back of strong pick-up in private residential project launches and sales activity in Singapore’s property market
- Expects stability and sales momentum in Singapore’s property market to extend into 2026, and moderate growth of 3-4% in both private home and HDB resale prices in 2026
- Declared final dividend of 4.5 Scts/share, bringing full year FY25 dividend to 9.5Scts/share
- We currently have a BUY recommendation with TP SGD2.15
First Resources
Stellar performance and dividend
- First Resources (FR) booked net profit of USD119m (+53.2% y/y, +35.4% q/q), ahead of our forecast
- FR proposed a final dividend of Scts10.2/share (+62% y/y) with a consistent 50% dividend payout ratio, offering a yield of 4.6%
- Strong CPO prices and the successful ANJ acquisition and integration boosted earnings performance
- There is room for improvement in 2026, as the ANJ acquisition will contribute a full year of earnings versus only six months in 2025. We currently have a BUY rating with a TP of SGD2.10
Legend
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Earnings | Positive earnings revision | Negative earnings revision |
Recommendation | Upgrade | Downgrade |
TP | Increase | Decrease |
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